Alkem Laboratories Ltd.Revenue +11%, Net Profit -21.7% on Tax

Alkem Laboratories reported Q1 FY27 revenue of ₹3,740 Cr, up close to 11%, with India sales of ₹2,497 Cr, up 10.3%, and international sales of ₹1,222 Cr, up 16%.

EBITDA margin was 20.5% and EBITDA grew 3.7%, while profit before tax rose 1.8% and net profit fell 21.7%, which management attributed to tax. In India, Alkem grew 13.2% against an industry rate of 12.2% per IQVIA, but Trade Generics were flat from April to June. The Daman facility received an FDA OAI status; it supplies 45% of US revenue, and management said supplies continue and it expects no impact this year. The US contract development business costs about ₹60 Cr a quarter and will not break even within 12 months.

Guidance was reaffirmed: US growth at mid to high single digit, India near 12%, gross margin of 66.5% to 67% and a consolidated tax rate of 30% to 32%. The Occlutech acquisition closed in mid-July, with a target of about ₹400 Cr of sales at break-even EBITDA this year.