By: IPP Bureau
Last updated : May 29, 2026 7:15 am
Strong domestic and international growth, improving product mix, and operational efficiencies drive margin expansion despite exceptional charges impacting quarterly profit
Alkem Laboratories Ltd reported its highest-ever EBITDA for FY26, supported by robust growth across domestic branded formulations and international markets, alongside improved operating leverage and disciplined cost management.
For Q4 FY26, the company reported total revenue from operations of Rs. 36,033 million, registering a year-on-year growth of 14.6 percent. Domestic sales stood at Rs. 23,245 million, up 8.8 percent YoY, while international sales rose sharply by 25.4 percent to Rs. 12,223 million.
EBITDA for the quarter increased 32.2 percent year-on-year to Rs. 5,174 million, with EBITDA margin improving to 14.4 percent compared to 12.4 percent in Q4 FY25. Profit before tax, before exceptional items, grew 40.7 percent to Rs. 5,578 million.
However, net profit after non-controlling interest declined 22.7 percent year-on-year to Rs. 2,365 million due to exceptional items during the quarter. These included an incremental liability of Rs. 602.7 million towards gratuity and leave encashment following finalisation of Central Rules under the Labour Codes, along with a Rs. 747 million impairment of real estate investments.
For the full year FY26, total revenue from operations grew 13.5 percent to Rs. 147,123 million compared to FY25. India sales increased 9.7 percent to Rs. 98,514 million, while international sales surged 22.5 percent to Rs. 46,810 million.
Annual EBITDA rose 19.6 percent to Rs. 30,052 million, with EBITDA margin expanding to 20.4 percent from 19.4 percent in FY25. Profit before tax after exceptional items grew 13.6 percent to Rs. 28,709 million, while net profit increased 6.3 percent to Rs. 23,018 million.
Dr. Vikas Gupta, CEO of Alkem, said, “Our top-line growth was broad-based with both domestic branded generics and international business delivering strong growth. An improving business mix, operating leverage and continued cost discipline drove meaningful margin expansion in FY26.”
“We enter FY27 on a firm foundation and expect healthy growth across businesses supported by increasing contribution from chronic therapies and a differentiated launch pipeline for international markets,” added Dr. Gupta.