Earnings Review
Robust domestic, Intl ops boosts Alkem Lab's Q1 PAT, sales
This story was originally published at 15:53 IST on 12 August 2025
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--Alkem Laboratories Apr-Jun consol net profit INR 6.64 bln
--Analysts saw Alkem Lab Apr-Jun consol net profit at INR 5.02 bln
--Alkem Lab Apr-Jun consol PAT INR 6.64 bln vs INR 5.45 bln year ago
--Alkem Lab Apr-Jun consol revenue INR 33.71 bln vs INR 30.32 bln year ago
--Alkem Lab Apr-Jun consol EBITDA INR 7.39 bln vs INR 6.09 bln year ago
--Alkem Lab Apr-Jun consol EBITDA margin 21.9% vs 20.1% year ago
--Alkem Lab Apr-Jun India revenue INR 22.65 bln, up 12% on year
--Alkem Lab Apr-Jun intl revenue INR 10.54 bln, up 8.9% on year
--Alkem Lab Apr-Jun consol R&D expenses INR 1.18 bln vs INR 1.26 bln yr ago
--Alkem Lab Apr-Jun US revenue INR 6.98 bln, up 8.8% on year
By Arya S. Biju
MUMBAI – Alkem Laboratories Ltd. reported robust earnings for the June quarter driven by healthy growth across both domestic and international markets. The company reported a double-digit on-year rise in its consolidated net profit for the reporting quarter as against a high-single-digit fall expected by the Street. Similarly, its top line for the quarter grew at its fastest pace in seven quarters, outpacing the analysts' estimate of a mid-single digit on-year rise.
The pharmaceutical company's consolidated net profit for the quarter rose nearly 22% on year to INR 6.64 billion. This was the second-highest net profit reported by the company since its shares debuted on the stock market in December 2015. This was also above the analysts' estimate of INR 5.02 billion by a wide margin. On a sequential basis, the company's net profit more than doubled from INR 3.06 billion.
Its consolidated revenue for the quarter rose over 11% on year and 7% on quarter to INR 33.71 billion. This was also above the INR 32.07 billion estimated by the Street. The company's other income for the quarter rose over 13% on year to INR 1.37 billion, but fell over 6% on quarter.
Reacting to the robust earnings, shares of the company, which were trading over 3% higher before the earnings announcement, rose over 7% to its highest price in over two months at INR 5,207.50 on the National Stock Exchange. More
The company's domestic sales, which contributed to 68.3% of the total sales, grew 12% on year to INR 22.65 billion. Its overall domestic volumes grew 2.9%, outperforming the Indian pharmaceutical market volume growth of 1.5%, the company said in a post-earnings investor presentation. The company delivered a strong performance during the quarter, outpacing market growth in seven out of eight key focus therapies, Alkem Laboratories said.
Its international sales for the reporting quarter rose nearly 9% on year to INR 10.54 billion. This was mainly led by a near 9% on-year rise in its revenue from the US market to INR 6.98 billion. Analysts had expected the company's US sales to be flat or lower on a year-on-year basis due to absence of major product launches and delayed abbreviated new drug application approvals. During the June quarter, US business sales contributed 21% to the company's total sales.
The company's revenue from its non-US business grew a little over 9% on year to INR 3.56 billion, driven by double-digit growth in Australia and key European markets. Non-US business sales contributed around 11% to its total sales in the June quarter. "We are strategically accelerating our focus on the non-US business segment by strengthening our presence in high-potential non-US markets and capturing new opportunities that align with our long-term growth ambitions," Vikas Gupta chief executive officer of the company said in a post-earnings press-release.
Alkem Laboratories' consolidated earnings before interest, taxes, depreciation, and amortisation for the quarter rose over 21% on year to INR 7.39 billion. This was higher than the INR 6.14 billion estimated by the Street. Its consolidated EBITDA margin for the quarter improved 180 basis points on year to 21.9%.
The company's expenses related to research and development for the June quarter fell around 6% on year to INR 1.18 billion. During the reporting quarter, research and development costs accounted for 3.5% of total sales of the company. Its total expenditure for the quarter rose nearly 9% on year but fell around 5% on quarter to INR 27.50 billion. This was led by a 15% on-year rise in employee benefits expenses to INR 6.93 billion and a 3% rise in other expenses to INR 7.68 billion. Its raw material costs, on other hand, fell marginally on year to INR 8.27 billion.
As of Jun. 30, the company had filed 185 abbreviated new drug applications, two new drug applications, and one biologics licence application with the US Food and Drug Administration. Among these, it has received approval for 160 abbreviated new drug applications, including 15 tentative approvals, and two new drug applications, the company said.
On Tuesday, shares of the company closed at INR 5,149 on the NSE, up 6.3%. End
Edited by Akul Nishant Akhoury
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