Analyst Concall
Alkem Lab to continue double-digit growth in India Oct-Mar
This story was originally published at 18:54 IST on 13 November 2025
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--Alkem Lab: Growth momentum to continue in India Oct-Mar
--CONTEXT: Alkem Lab management's comments in post-earnings investor call
--Alkem Lab: Expect to do better than industry growth in India
--Alkem Lab: Expect to outperform market growth in India by 100-150 bps
--Alkem Lab: FY26 EBITDA margin guidance at 19.5-20.0%
--Alkem Lab: Costs related to new US plant may affect H2 margins
--Alkem Lab: FY26 R&D spend seen at 4-5% of total sales
--Alkem Lab: Other expenses high in Q2 due to rise in marketing costs
--Alkem Lab: Preparing to grab GLP-1 opportunity in India, other mkts
--Alkem Lab: CDMO ops to generate INR 200 mln per quarter H2
--Alkem Lab: Expect CDMO revenue to reach INR 3 bln in 12-18 months
--Alkem Lab: Expect 3-4 new product launches in US in H2
--Alkem Lab: New CDMO plant in US may incur INR 500 mln operating costs H2
--Alkem Lab: May consider buyouts in India if right opportunity comes along
By Narayana Krishna and Taniva Singha Roy
HYDERABAD/MUMBAI – Alkem Laboratories Ltd. Thursday said the company was confident of continuing the current growth momentum in Oct-Mar and beyond in line with its earlier guidance of double digit revenue growth in India. The company is expecting to outperform in India sales by 100-150 basis points compared with Indian Pharmaceutical Market growth, Alkem Lab management said in a post-earnings conference call.
Alkem Lab reported a consolidated net profit of INR 7.7 billion for the September quarter, up 11% on year. The year-on-year net profit growth was lower than the trailing quarter. The bottom line, however, beat analysts' consensus estimate of INR 7.4 billion. The company's revenue for the quarter was up 17% on year at INR 40.01 billion, above the Street's estimate of INR 37.7 billion. On a sequential basis, the company's net profit was up a little over 15% and revenue rose 17%.
"So, we gave an overall guidance of a double-digit kind of growth assuming the market grows at around 8.0 to 8.5%, which looks like the possible scenario. So, I don't foresee any reason for these growth to slow down even in H2 (Oct-Mar). So, we should continue showing a similar trend in H2," Alkem management said. For the September quarter, the company reported a 12.4% on-year rise in its India sales at INR 27.7 billion.
"Q4 (Jan-Mar) may be slightly higher than Q3 (Oct-Mar), but overall, on an H2 (Oct-Mar) basis, we are confident of continuing this growth trend," the company said.
"I have always maintained that we will continue to outperform the market at least by 100 to 150 (basis points) at this point (on India market growth). This growth is backed by one strong launches plus our key brands doing very fast. So, I think this trend can continue even in H2," Alkem Lab said.
Alkem Lab management said the company will continuously look out to acquire brands in domestic formulations side, since India is the core market for the company.
"We are continuously on the lookout. Now we have good cash in our balance sheet as well. So, whenever there is the right opportunity at the right value, where we feel that we can create more value, we'll go for it," Alkem Lab said.
Alkem Lab management said the company is hoping to bet approval for its first Glucagon-Like-Peptie-1 or GLP-1 category product and preparing to grab the first wave sales opportunity in India. The company is also in the process of filing the new applications for approvals for the GLP-1 products. The company said, India will be the first one to see the GLP-1 launch and it may take couple of years to get in to other markets. In the US, it is expecting the its GLP-1 product approval taking at least two years from now.
Alkem Lab is expecting its contract development and manufacturing organistaion operations to pick up further as its new US plant has been commissioned. The company is expecting to achieve a milestone of INR-200-million revenue per quarter in Oct-Mar from the new CDMO plant. However, for Oct-Mar, the company is expecting INR 500 million operating costs, as the plant is stabilising. In the next 12-18 months, the company is aiming to achieve INR 3 billion revenue from this plant, the management said.
Alkem Lab said the September quarter US sales growth was driven by new launches. The company launched four new products during Apr-Sept and is expecting to launch another 3-4 in Oct-Mar. The company remains confident of maintaining mid-single digit growth in the US, excluding exclusive products sales.
Alkem Labs said it will continue to maintain its earnings, before interest, tax, depreciation, and amortisation margin guidance at 19.5-20.0% for 2025-26 (Apr-Mar). The company said operating costs related to the new CDMO plant in the US may have some impact on the margin in second half of the fiscal year. Nearly INR 2 billion sequential rise in other expenses during September quarter is due to increase in marketing expenses, the company said.
On Thursday, shares of Alkem Lab ended at INR 5,725.50 on the National Stock Exchange, down 0.7% from their previous close. End
US$1 = INR 88.66
Edited by Akul Nishant Akhoury
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