Alkem Labs reports strong Q2 FY26 growth, boosted by domestic and international sales

Alkem Laboratories announced record-high total revenue from operations of INR40,010 million for Q2 FY26, a 17.2% year-on-year (Y-o-Y) increase. India sales grew by 12.4% Y-o-Y to INR27,660 million, while U.S. sales surged 28% Y-o-Y to INR7,649 million. Non-U.S. sales also demonstrated significant growth, up 32.4% Y-o-Y to INR4,241 million. The company's EBITDA increased by 22.3% Y-o-Y to INR9,208 million, achieving an EBITDA margin of 23%. Net profit after minority interest reached INR7,651 million, an 11.1% Y-o-Y rise.

R&D expenses stood at INR1,302 million, representing 3.3% of total revenue. For the domestic market, Alkem became the number one company in the Acute segment according to IQVIA SSA data for Q2 FY26. The company projects maintaining its market outperformance by 100 to 150 basis points, with an overall guidance of double-digit growth.

New investments, including the U.S. CDMO plant, are expected to incur operational expenditure of INR50 crores to INR60 crores in H2 FY26. The U.S. CDMO business is anticipated to generate INR70 crores to INR80 crores in revenue, with a target of INR300 crores within the next 12 to 18 months from current production capacity. Gross margins are expected to be between 64% and 65% for the second half and full year.