Alkem Labs' Q2 profit falls 12 pc to Rs 675 crore

Mumbai: Pharmaceutical major Alkem Laboratories on Thursday reported an 11.8 per cent year-on-year (YoY) decline in consolidated net profit to Rs 675 crore for the quarter ended September 2026 (Q2 FY27), even as strong growth in domestic and international businesses helped drive double-digit revenue expansion.

The company's consolidated net profit fell from Rs 765 crore in the corresponding quarter of the previous financial year (Q2 FY26), according to its stock exchange filing.

During the quarter, Alkem also recorded a one-time gain of Rs 35 crore. Revenue from operations rose 13.8 per cent to Rs 4,552 crore in Q2FY27 from Rs 4,001 crore a year earlier, supported by healthy growth across key markets.

At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) increased 11.3 per cent year-on-year to Rs 1,025 crore, compared with Rs 921 crore in the year-ago period.

However, EBITDA margin narrowed to 22.5 per cent from 23 per cent a year ago.

The company's India business continued to remain its largest revenue contributor, with domestic sales rising 9.5 per cent year-on-year to Rs 3,027.5 crore.

The domestic market accounted for 68 per cent of total sales during the quarter, compared with 70 per cent in the corresponding period last year.

According to IQVIA data, Alkem's domestic business grew 13.8 per cent during the quarter, largely in line with the Indian Pharmaceutical Market.

Its acute portfolio expanded 12.1 per cent, while the chronic segment grew 22.4 per cent, significantly outpacing market growth of 16 per cent.

The company also outperformed the broader market across several focus therapies, including vitamins, minerals and nutrition, pain management, anti-diabetic, cardiac, urology, respiratory, neuro/CNS and dermatology.

Alkem's international business delivered robust growth, with sales rising 22.3 per cent year-on-year to Rs 1,454 crore.

US sales increased 2.4 per cent to Rs 783 crore despite continued pricing pressure, while non-US sales surged 58 per cent to Rs 671 crore. Excluding the impact of Occlutech, non-US business growth stood at 28.6 per cent.

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