Alkem Laboratories Limited Earnings Summary — Q4 FY2026

• Revenue for Q4 FY2026 grew by 14.6% YoY to reaching 3,603 Cr, though it remains slightly lower than the Q3 peak.
• The tax rate spiked to 40% in the latest quarter, significantly impacting the bottom line compared to the previous quarters.
• Operating Profit Margin (OPM) moderated to 14% from 22% in the preceding quarter, indicating high expense volatility.
• Alkem maintains its 5th position in the Indian pharmaceutical market with a focus on high-growth chronic segments.
• Inventory levels have risen significantly, with inventory on the balance sheet reaching 4,012 Cr by end of FY26.
• Interest costs have doubled YoY in the quarterly comparison, reflecting the increased borrowing profile and higher interest environment.
• Despite quarterly volatility, the company delivered full-year RoE of 18%, maintaining its status as a high-quality compounder.

Management is focused on a strategic pivot toward chronic segments like neurology and cardiology to protect margins from US generic price erosion.

Stable

While YoY revenue growth is healthy, the sharp sequential decline in profit and spike in tax rates counterbalance the top-line performance.

The company expects to leverage its large field force and leadership in anti-infectives while navigating pricing headwinds in the US generic markets and volatility in raw material costs.