Alkem FY26 PAT up 6.3%; Q4 profit falls on exceptional items

Alkem Laboratories Limited reported a consolidated net profit of ₹23,018 million for the financial year ended March 31, 2026, representing a 6.3% increase from the prior year. The company achieved its highest ever EBITDA of ₹30,052 million, an increase of 19.6% year-on-year, with an EBITDA margin of 20.4%. Revenue from operations for FY26 stood at ₹147,123 million, growing 13.5% compared to FY25. The board has recommended a final dividend of ₹10 per equity share, pending shareholder approval. For the quarter ended March 31, 2026, the company recorded a consolidated net profit of ₹2,365 million, a decline of 22.7% from ₹3,059 million in the corresponding quarter of the previous year. Revenue from operations for Q4FY26 was ₹36,033 million, up 14.6% year-on-year. The decline in quarterly profit was attributed to exceptional items totaling ₹1,350 million, including a ₹747 million impairment of real estate investments and an incremental liability of ₹602.7 million towards gratuity and leave encashment costs following the finalisation of Central Rules under the Labour Codes. Analyst View: Nomura Maintains Buy Nomura Holdings has maintained its Buy rating on Alkem Laboratories with a target price of ₹6,890. The brokerage noted that Q4 revenue was in line with estimates, while EBITDA beat expectations by 11%, driven by strong gross margin expansion to 65.4% (+606bps YoY). However, PAT was impacted by one-off exceptional losses of ₹1.35bn related to real estate impairment and labour code changes, along with a higher tax rate. Nomura noted that FY27 guidance was in line to ahead of expectations. The stock currently trades at 23.6x/19.7x FY27F/FY28F adjusted EPS. Parameter: Details Rating Buy Target Price ₹6,890 EBITDA vs Estimates Beat by 11% Gross Margin (Q4) 65.4% (+606bps YoY) Exceptional Losses (Q4) ₹1.35bn Valuation (FY27F/FY28F) 23.6x / 19.7x adjusted EPS Q4 EBITDA Performance Despite the decline in quarterly net profit, Alkem's Q4 EBITDA demonstrated strong operational improvement. The following table highlights the quarter's EBITDA metrics: Metric: Q4 FY26 Q4 FY25 EBITDA ₹5.17B ₹3.9B EBITDA Margin 14.4% 12.45% Consolidated Financial Results for FY26 The following table presents the consolidated financial performance for the full year: Particulars: Year ended 31.03.2026 (₹ in Million) Year ended 31.03.2025 (₹ in Million) Revenue from Operations 147,123 129,645 Total Income 152,956 134,583 Total Expenses 122,499 109,312 Profit before Tax 28,709 25,270 Net Profit for the period 23,018 21,655 Earnings Per Share (Basic) (₹) 192.50 181.10 Standalone Financial Results for FY26 On a standalone basis, the company's financial results for the full year are as follows: Particulars: Year ended 31.03.2026 (₹ in Million) Year ended 31.03.2025 (₹ in Million) Revenue from Operations 96,639 88,134 Total Income 102,191 93,205 Total Expenses 75,534 70,170 Profit before Tax 25,226 23,035 Net Profit for the period 22,821 22,809 Earnings Per Share (Basic) (₹) 190.87 190.77 Operational Highlights Domestic business revenue grew 9.7% year-on-year to ₹98,514 million, while international business revenue increased 22.5% to ₹46,810 million. The US business reported sales of ₹29,845 million, a growth of 20.3%, driven by new launches and volume increases. The company filed 192 ANDAs, 2 NDAs, and 1 BLA with the USFDA as of March 31, 2026, and received approvals for 167 ANDAs and 2 NDAs. The board fixed August 7, 2026, as the record date for the payment of the final dividend, with the 52nd Annual General Meeting scheduled for August 27, 2026. The auditors, Deloitte Haskins & Sells LLP, issued an unmodified opinion on the financial results. Pipeline and Product Updates Alkem Labs anticipates the U.S. launch of Tolvaptan by September or October, targeting the second half of the fiscal year in a market characterised by limited competition. On the domestic front, the company launched Semaglutide injectables in March 2026, achieving an 11% market share, with expectations for further growth. Clinical trials for Semaglutide tablets are currently underway, with the company aiming for regulatory approval and a defined market release strategy. Additionally, Alkem Labs plans to transition to the new tax regime by April 2026, revising its tax rate guidance downward to 27%-29% from the earlier range of 35%-38%. Parameter: Details Tolvaptan U.S. Launch Target September or October (second half of fiscal year) U.S. Market Competitive Landscape Low competition Semaglutide Injectables Launch March 2026; 11% market share achieved Semaglutide Tablets Status Clinical trials underway; targeting regulatory approval Tax Regime Transition Shift to new tax system by April 2026 Revised Tax Rate Guidance 27%-29% (from earlier 35%-38%) FY27 Outlook Looking ahead, Alkem Labs expects strong growth across its key markets. The company anticipates high-single-digit growth in the US market, with additional gains expected from currency tailwinds and new product launches. Rest of World (ROW) markets are anticipated to deliver high-teens growth. For FY27, the EBITDA margin is projected to be in the range of 20% to 21%, subject to geopolitical factors and cost clarity. On the domestic front, Alkem Labs aims for business growth to be 1 to 1.5 percentage points higher than the market, indicating double-digit growth, with Semaglutide identified as a key driver for sustaining momentum. FY27 Outlook Parameter: Details US Market Growth High-single-digit increase, with additional gains from currency and new launches ROW Markets Growth High-teens growth EBITDA Margin Guidance 20% to 21% Domestic Business Growth 1 to 1.5 percentage points above market (double-digit growth) Key Domestic Growth Driver Semaglutide Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE540L01014/33f3c9f8-4528-4691-b326-ceb9f34ed092.pdf We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. Stock Markets are the true indicator of the growth of any country's economy. We are bullish on India, we are bullish on India's prospects to be one of largest economies of the world. We believe that Stock Markets provide an unique opportunity for all Indians to participate in the growth story of India. We are enabling the same for Indians. As financial services are becoming more accessible, there is now a large set of Indians today who are financially aware and literate. They value time and seek high quality products & services. Most screening, trading, investing platforms available today are more or less similar to each other, and they have not evolved with time. While both traders & investors have gotten smart about how they make money and build wealth, as users they have continued to use the same products, features, and platforms that were available for years with little or no innovation. We plan to change that - a technology-led and artificial intelligence enabled platform built for super traders and long term investors. Disclaimer: The data and information provided on this website is for general informational and research purposes only. While we strive to ensure that the content is accurate, up-to-date, and reliable, this platform utilizes artificial intelligence (AI) tools to generate, curate, and summarize information. As such, the content may occasionally contain errors, omissions, or outdated information. All users are therefore advised to cross verify the source of the data and information. This website does not constitute professional, legal, financial, medical, or any other form of licensed advice. Users are encouraged to independently verify any information before relying on it, especially for decisions that may have legal, financial, or personal consequences. The views, analyses, and summaries presented on this platform may be generated or assisted by AI and do not necessarily reflect the opinions of the website owners, operators, editors, or affiliates. We make no warranties or representations, express or implied, regarding the completeness, accuracy, reliability, suitability, or availability of the information contained on this website. Any reliance you place on such information is strictly at your own risk. This website may include links to third-party sources or content. We do not control or endorse the nature, accuracy, or availability of those external sites and are not responsible for any content or damages arising from their use. By using this website, you acknowledge and agree that the use of AI-generated content involves inherent limitations, uncertainties and inaccuracies, and you accept full responsibility for how you interpret and use the information provided. We reserve the right to modify, update, or remove content and this disclaimer at any time without prior notice.