ALKEM
Mid CapAlkem Laboratories Limited
Pharma
Alkem Laboratories Limited is an Indian pharmaceutical company. FY26 was a landmark year, crossing INR3,000 crores EBITDA. Key growth areas include GLP-1, Medtech, and biosimilar bio CDMOs. The company focuses on India branded generics and international businesses.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 5/100PAT -22% YoY · Rev +15% YoY · margin expansion
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,603 Cr | +14.6% | -3.6% |
| EBITDA | ₹517 Cr | +32.2% | -37.6% |
| Operating margin | 14.0% | +200 bps | -800 bps |
| PAT | ₹251 Cr | -22.1% | -61.6% |
| PAT margin | 7.0% | -327 bps | -1050 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Alkem reports strong Q4 and FY26 results with record profitability. Q4 revenue grew 14.6% YoY, international sales up 25.4%, and EBITDA up 32.2%. FY26 EBITDA surpassed INR3,000 crores, reflecting broad-based growth and margin expansion.
Alkem delivered record FY26 EBITDA, driven by strong India branded generic and international growth. New product launches, especially semaglutide, are performing well. Margin expansion and cost discipline are evident, though geopolitical factors pose near-term cost headwinds. Management is focused on execution and portfolio mix.
GLP-1 (Semaglutide) Launch
Successful day 1 launch of semaglutide in March 2026, garnering an 11% unit market share in the most recent IQVIA report.
Medtech Business
Medtech continues to be a growth area, with the Occlutech acquisition expected to close in 45-60 days.
Biosimilar Bio CDMOs
Biosimilar bio CDMOs continue to be growth areas, with Enzene India in early double-digit EBITDA.
Chronic Segment Focus
Chronic business is close to 22% of branded generic business, improving by at least 1% annually, with new products strengthening it further.
Occlutech Acquisition
Occlutech acquisition expected to close in 45-60 days, will be integrated into Alkem MedTech business.
Enzene U.S. Plant Commissioning
Enzene U.S. plant was commissioned a few months back; it will take time to get EBITDA breakeven.
Field Force Expansion
Expanded field force in the recent quarter, largely on the chronic side, with MRs at a group level of around 14,500.
Improving Business Mix
The year reflected the benefits of an improving business mix, contributing to meaningful margin expansion.
Operating Leverage and Cost Discipline
Operating leverage and continued cost discipline contributed to a meaningful margin expansion.
New Tax Regime Adoption
Decided to move to the new tax regime from April '26, with a revised tax rate of around 27%-29% going forward, increasing cash accumulation.
Increased Logistics Costs
Current geopolitical environment and evolving global supply chain dynamics have resulted in increased logistics costs.
API and Packaging Material Pressure
Some pressure on APIs and packaging materials due to the current geopolitical environment.
Geopolitical Environment Instability
The geopolitical environment is very unstable, leading to cost variability and inflation.
Raw Material Price Volatility
Raw material and packing material prices are increasing; continuous monitoring and inventory calls are being taken.
Regulatory Pricing Pressures
Pricing is governed by regulations which the company has to follow, posing a risk that cannot be mitigated internally.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The document provides both Q4 and full-year FY26 results. Q4 YoY comparison is relevant for recent performance and momentum, while full-year YoY provides a comprehensive view of annual strategic execution and profitability trends.
Domestic Formulations Growth (Q4 FY26)
India sales were INR23,245 million with a Y-o-Y growth of 8.8%. Branded generic business growth was close to 10%.
International Sales Growth (Q4 FY26)
International sales were INR12,223 million with a Y-o-Y growth of 25.4%.
EBITDA (Q4 FY26)
EBITDA was INR5,174 million, resulting in an EBITDA margin of 14.4% for Q4 FY26 versus 12.4% for Q4 FY25. EBITDA grew by 32.2% Y-o-Y.
R&D Expenses (Q4 FY26)
R&D expenses for Q4 FY26 were INR2,293 million, which is 6.4% of total revenue from operations.
Sustaining FY27 Momentum
Optimistic on sustaining momentum in FY27 with continued focus on strengthening execution, improving portfolio mix, and expanding differentiated pipeline.
Domestic Growth Outlook
Expects domestic business to grow 100 to 150 basis points higher than the market, aiming for double-digit growth.
US Growth Outlook
Anticipates a high single-digit growth in the U.S. market on a dollar-to-dollar basis, with currency gains and new launches contributing.
FY27 Margin Outlook
In the current scenario, expects FY27 margins to be within the 20%-21% range, with better clarity as geopolitical situation stabilizes.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Domestic Market Outperformance | 100-150 bps higher than IPM | Sustained outperformance relative to market growth, especially with GLP-1 contribution and chronic segment traction. |
| Occlutech Integration & Contribution | Acquisition expected to close in 45-60 days, contribution less than 1% currently. | Successful integration into Alkem MedTech business and meaningful contribution to numbers from Q2 FY27. |
| Enzene U.S. Plant Profitability | Currently losing money, will take time to reach EBITDA breakeven. | Ramp-up of utilization and progress towards EBITDA breakeven, and increased CDMO revenue. |
| Impact of Cost Pressures | Increased logistics, API, and packaging costs due to geopolitical situation. | Management's ability to mitigate these headwinds and maintain margins within the 20-21% range. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
44NeutralSMA20 -3.0% / mo
Technical chart
ALKEMdaily · 5Y-6.0%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 47. Wait for confirmation.
- SMA20 falling (~1.8% over last month) — short-term momentum negative.
- RSI(14) at 47 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 10% off 52W high · 6% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 10/15 to the score.
- Quality contributes 13/20 to the score.
Main drags
- Valuation is weaker at 4/30; verify the latest quarterly trend.
- Growth is weaker at 13/25; verify the latest quarterly trend.
- Cash flow is weaker at 6/10; verify the latest quarterly trend.
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 93rd percentile of the scored universe and 90th percentile within Pharma. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero. Key concern: Promoter holding fell 1.8%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Pharma: 90th pctile, median 70 · Mid: 74th pctile, median 76
155 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 2.8%.
- ▸6 years of positive FCF.
- ▸Debt/equity is 0.10.
Trust risks
- ▸Promoter holding fell 1.8%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 26.30
- P/B
- 4.63
- EV/EBITDA
- 19.32
- Market Cap
- 64048.00Cr
Profitability
- ROE
- 18.90%
- ROCE
- 21.20%
- ROA
- 11.26%
- Dividend Y
- 0.84%
Growth (CAGR)
- Revenue 5Y
- 11.00%
- EPS 5Y
- 9.00%
- Revenue 3Y
- 8.00%
- EPS 3Y
- 32.00%
Balance Sheet
- Debt/Equity
- 0.10
- Interest Coverage
- 18.66×
- Altman Z
- 7.79
- Book Value
- 1156.00
Cash Flow
- FCF Yield
- 2.81%
- FCF Positive Y
- 6/5
- OCF
- 1682.00 Cr
- EPS TTM
- 192.51
Shareholding
- Promoter Hold
- 51.20%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 53%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.