Alkem Laboratories Q1 results: Net profit drops 21% YoY; board approves setting up new block at Baddi plant

The pharmaceutical firm’s revenue from operations grew 11% to ₹3,740 crore in the June quarter, as against ₹3,371 crore registered in the year-ago period.

The company's operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), jumped 4% to ₹766 crore as compared to ₹739 crore in the corresponding quarter of the previous fiscal year.

Its EBITDA margin, however, contracted to 20.48% in the reporting quarter from 21.92% in Q1 FY26.

Alkem’s India sales rose 10.3% to ₹2,498 crore annually, while its international sales stood at ₹1,222 crore, advancing 16% YoY.

The drugmaker’s R&D expenses for Q1 FY27 were ₹150 crore, or 4% of total revenue from operations, compared to ₹118 crore in Q1 FY26, which was 3.5% of total revenue from operations.

The contribution of domestic sales to total sales was 67.1%, as against 68.2% in Q1 FY26.

Alkem Labs’ US sales stood at ₹744 crore in Q1 FY27, registering a year-on-year growth of 6.5%. The US business contributed 20% to total sales during the quarter, compared with 21% in Q1 FY26.

Non-US sales grew 34.5% YoY to ₹478.5 crore in Q1 FY27, with their contribution to total sales increasing to 12.9% from 10.8% in Q1 FY26. During the quarter, the company received five ANDA approvals for the US market, including one tentative approval.

Commenting on the results, Alkem Managing Director Sandeep Singh said, “We have started FY27 on a steady note, with healthy growth across our India and international businesses. Our India business continued to outperform the market, while the strong growth in our non-US international markets was encouraging. At the same time, there are areas where we need to improve, particularly in strengthening execution, addressing operational and regulatory priorities, and improving the consistency of performance across our businesses.”

Singh said the company is investing in R&D, MedTech and Biotech to build its next phase of growth while focusing on strengthening its core business, addressing areas that need improvement and developing newer opportunities in a disciplined manner.

Along with the earnings, the Alkem board of directors has also approved the setting up of a new block within the existing manufacturing facility located at Baddi, Himachal Pradesh. It has approved an investment of up to ₹75 crore.

Following the earnings, Alkem Laboratories shares were trading at ₹5,300 apiece on the National Stock Exchange, falling 2.74%. According to NSE data, the company has a market capitalisation of ₹63,453.15 crore.