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Informist, Friday, Aug. 14, 2026

 

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--Alkem Lab: Low trade generic volumes hurt domestic revenue Q1
--CONTEXT: Comments by Alkem Lab mgmt in post-earnings call with analysts
--Alkem Lab: Expect Occlutech to breakeven in 12 months
--Alkem Lab:Expect to launch Xgeva biosimilar for bone cancer in Europe 3 mo
--Alkem Lab: Expect Occlutech to report revenue of INR 4 bln in FY27
--Alkem Lab: Competition intensified in trade generics business Q1
--Alkem Lab: Expect effective tax rate of 30-32% on consol basis for FY27
--Alkem Lab: Operating expenses seen remaining high due to US plant costs
--Alkem Lab: CDMO ops to break-even in FY28, see $30 mln sales
--Alkem Lab: Maintain FY27 gross margin guidance at 66.5 67.0%

 

By Narayana Krishna and Eshitva Prakash

 

HYDERABAD/MUMBAI – Alkem Laboratories Ltd. expects its contract development and manufacturing organisation business to break even in the financial year 2027-28 (Apr-Mar) with an estimated annual revenue of $30 million, the company told analysts in a post-earnings conference call Friday.

 

Though the company expects the overall contract development and manufacturing organisation business to break even in FY28, the segment's operations in the US may take more time to reach the milestone, a top executive of Alkem Laboratories said. For the June quarter, the company booked a loss of INR 600 million in the contract development and manufacturing organisation business, mainly due to employee costs.

 

Alkem Laboratories reported a consolidated net profit of INR 5.20 billion for June quarter, down nearly 22% on year but up nearly 120% on quarter. The net profit was below analysts' estimate of INR 5.69 billion. Revenue from operations for the quarter was INR 37.40 billion, up nearly 11% on year and nearly 4% on quarter, but below the Street's estimate of INR 37.78 billion.

 

Alkem Laboratories said the operating costs for FY27 are expected to be higher owing to continued expenses of its contract development and manufacturing organisation plants in the US. Higher operating costs were among the reasons the company posted weak earnings for the June quarter.

 

The company expects its effective tax rate for FY27 to be 30–32% on a consolidated basis because of some of its subsidiaries reporting losses. For the June quarter, the company reported a rise of nearly 144% in its tax expenses to INR 2.5 billion, which also left its impact on the earnings for the quarter.

 

Alkem Laboratories said the performance of its trade generics business was weak in the June quarter because of intensified competition in the segment. This situation is likely to continue for the remainder of the year, it said.

 

The company said the integration of Switzerland-based Occlutech Holdings AG, in which subsidiary Alkem Medtech Pvt. Ltd. has acquired majority state, is in progress, and it expects the acquired company to contribute around INR 4 billion to overall revenues in FY27. The company expects the acquired company to break even in the next 12 months.

 

Alkem Laboratories expects to launch its bone cancer biosimilar drug Xgeva in Europe in three months. The company, through its arm Enzene Biosciences Ltd., has a tie-up with Ascend GmbH for the drug to complete the regulatory process in Europe.

 

Alkem Laboratories said support from the currency side in the US and Australia helped to post an improvement in gross margins for the quarter, though there was an impact from higher costs. For FY27, the company maintains its gross margin guidance at 66.5% to 67.0%.

 

Friday, Alkem Laboratories shares ended at INR 5,368 on the National Stock Exchange, down 1.5% from Thursday.  End

 

US$1 = INR 95.42

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Rajeev Pai

 

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