Just when everyone thought Indian pharma had settled into a boring mid-single-digit jog, Alkem decided to sprint. While peers debated seasonality, GST noise, and pricing erosion, Alkem casually dropped an all-time-high revenue quarter and said, “Relax, we’ve got this.” Management sounded confident, margins looked steady, and analysts kept poking the CDMO bear to see when losses stop biting.
India delivered like a dependable elder sibling, the U.S. suddenly woke up thanks to one blockbuster launch, and non-U.S. markets behaved like overachievers trying to impress investors. Of course, expenses are lining up for their own entry in H2, because nothing good comes free.
Stick around. The numbers look clean now, but the real drama begins when new plants start burning cash before printing money.
2. At a Glance
Revenue up 17.2% – Management says “execution,” markets say “finally some spice.”
India sales up 12.4% – Core market doing core things, reliably outperforming IPM.
U.S. sales up 28% – One launch walked in and changed the mood.
Non-U.S. up 32.4% – Germany and Australia clearly skipped the slowdown memo.
EBITDA margin at 23% – Strong, until H2 expenses decide to test it.
Net profit up 11.1% – Growth yes, fireworks no.
3. Management’s Key Commentary
“Q2 FY26 has been another strong quarter for us, marked by robust growth across India, U.S. and key international markets.” (Everything worked at once; please don’t ask us to repeat this every quarter 😏)
“Total revenue touched an all-time high of INR40,010 million.” (Yes, we checked twice. It’s real.)
“India sales grew 12.4% year-on-year.” (Still the emotional support system of the P&L.)
“U.S. sales were INR7,649 million with a Y-o-Y growth of 28%.” (Sacubitril/valsartan doing all the talking.)
“EBITDA margin stood at 23%.” (Enjoy it before CDMO opex walks in.)
“We will continue to outperform IPM by 100–150 basis points.” (Under-promise? Never heard of her 😌)
“U.S. CDMO opex will be around INR50 crores per quarter.” (Translation: profits, meet patience.)
