Alkem Laboratories Delivers Robust Q2 FY26 Results with Double-Digit Growth

Alkem Laboratories Ltd. has posted a robust performance for the second quarter ended September 30, 2025 (Q2 FY26), demonstrating strong operational efficiency and broad-based growth across key markets. The company’s top-line revenue and profitability saw significant year-on-year (YoY) increases.

Financial Performance Highlights

The company recorded total revenues of Rs. 40,010 million, marking a healthy 17.2% growth over the same period last year. This strong sales momentum translated effectively to the operating level:

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) soared by 22.3% to Rs. 9,208 million.
The EBITDA margin improved to 23.0% in Q2 FY26, up from 22.0% in Q2 FY25, reflecting improved gross margins and effective operating leverage.

Market-wise Growth Drivers

Alkem’s growth was fueled by strong performance in both its domestic and international operations:

🇮🇳 Domestic Market Sustains Leadership

Domestic sales reached Rs. 27,660 million, achieving 12.4% YoY growth and contributing nearly 69.9% of the total revenue. Crucially, Alkem out-performed the broader Indian Pharmaceutical Market (IPM) in six major therapeutic areas:

Gastrointestinal
VMN (Vitamins/Minerals/Nutrients)
Pain
Respiratory
Derma

International Operations Surge

The international business segment demonstrated a significant surge, with revenues of Rs. 11,890 million—an impressive 29.5% YoY increase.

U.S. Sales stood at Rs. 7,649 million, growing by 28.0% YoY.
Non-U.S. International Sales were the fastest growing, reaching Rs. 4,241 million with a 32.4% YoY increase.

R&D and Pipeline Expansion

Alkem maintained focus on portfolio expansion while managing R&D expenditure efficiently. R&D spend for Q2 FY26 was Rs. 1,302 million (3.3% of revenue), down from Rs. 1,465 million (4.3% of revenue) in the prior year.

In the crucial U.S. market, the company continued to advance its product pipeline:

2 ANDAs were filed.
1 tentative ANDA approval was secured.
4 products were launched during the quarter.

As of September 30, 2025, Alkem’s cumulative regulatory filings include 187 ANDAs, 2 NDAs, and 1 BLA. Total approvals stand at 163 ANDAs (including 17 tentative) and 2 NDAs.

CEO’s Outlook

Dr. Vikas Gupta, CEO of Alkem, expressed confidence in the company’s trajectory: “Q2 FY26 has been another strong quarter for us, marked by robust growth across India, the US, and key international markets. We also saw healthy traction in new product launches across markets. Our improved gross margins and operating leverage have contributed to a stronger EBITDA profile. As we look ahead, we remain focused on accelerating growth and continue to strengthen our presence in key markets.”