Alkem Laboratories Q2FY26: 4,001 Cr Sales, 23% OPM, and a 63.99 EPS Explosion – The Doctor is Billing Well

1.At a Glance

If there was ever a pharma company that blended monk-like patience with Gujarati-style business aggression, it’s Alkem Laboratories Ltd. At ₹5,724 per share (as of 19 Nov 2025) and a market cap of ₹68,458 crore, this doctor doesn’t need a prescription — itwrites them. With a quarterly revenue of ₹4,001 crore and profit of ₹779 crore, Alkem has achieved what most pharma aspirants dream of — a 23% operating margin and an EPS of ₹63.99 this quarter.

The Bhagavad Gita says, “Karmanye vadhikaraste ma phaleshu kadachana” — do your duty, not for the fruits. Clearly, Alkem did its karmic R&D, and the fruits are now looking juicier than an apple in a diabetes ward.

With 4.1% share of the Indian formulation market and #1 rank in anti-infectives, Alkem remains the anti-biotic kingpin. Over the last 3 months, the stock delivered a steady +5.6%, and over 6 months, a respectable +8.2%. Return on Equity stands at a sturdy 19.4%, ROCE at 20.4%, and a debt-to-equity ratio of just 0.18 — clean as a pharmacist’s counter.

The company maintains its cure dominance with brands like PAN, CLAVAM, GEMCAL, and SUMO — the Avengers of your local chemist’s shelf. But that’s not all — its R&D spend at 3.9% of revenue and expansion into biosimilars show that Alkem is now playing the long game — the kind that even God might envy for its compounding effect.

2.Introduction

Some pharma companies make drugs. Alkem makes drugsandmemes out of competitors. From anti-infectives to diabetology, it’s been quietly turning IPM charts into its playground.

Alkem isn’t just another pharma stock you buy because your CA told you to diversify — it’s a story of consistent execution and mild villainy. The company’s performance this quarter (Q2FY26) shows why analysts lose sleep trying to model it. ₹4,001 crore in revenue with a 17.2% YoY growth — that’s like a doctor who not only charges consultation fees but also invoices you for the chair you sat on.

Its profit after tax stood at ₹779 crore, up 11% YoY. The operating profit margin hit 23%, which in pharma-speak means “we priced pain relief with a little extra pain for competitors.”

Meanwhile, the promoter family continues its gentle trimming — promoter holding dipped from 53.04% to 51.20%. Perhaps the Singh family is spreading karma — or liquidity. FIIs hold 9.47%, and DIIs 21.93%, suggesting institutions believe this is less a stock, more a vaccine for portfolio volatility.

In the last five years, Alkem has grown sales at 9.2% CAGR and profits at nearly 14%. It’s not explosive growth, but as Warren Buffett would say, “Slow compounding is the closest thing to financial enlightenment.”

3.Business Model – WTF Do They Even Do?

In one line: Alkem sells medicines that make your body happy and your wallet slightly sad.

Their business runs on two turbocharged engines:

• Domestic Formulations (70%)– The India business is the bread, butter, and paratha. With 12,500+ field soldiers (or “medical representatives” in corporate lingo), 9 warehouses, and 75+ depots, Alkem’s distribution is tighter than a doctor’s handwriting. Its brands like PAN-D and CLAVAM are household names — if not in your home, then in your pharmacy bill.
• International Operations (30%)– This is the new-age zone. Generics, biosimilars, and CDMO services are driving its export machine across 80 countries. 179 ANDAs filed in the US, 154 approved — that’s like an IIT topper clearing every exam he ever sat for.

The company is aggressively betting onbiosimilars, with 7 under out-licensing in the UK, Brazil, and Switzerland. Its biologics arm is basically Alkem’s Avengers initiative — powered by Enzene Biosciences.

Oh, and it’s not just India anymore. With 19 manufacturing facilities (5 USFDA approved) and R&D labs