Synopsis:
Alkem Laboratories jumped sharply after reporting a staggering 107% growth in net profit on a QoQ basis, followed by a 7% growth in the topline.
The shares of the fifth-largest Indian pharmaceutical company are in focus after reporting a robust financial performance in this quarter, followed by the announcement of incorporating a subsidiary in Saudi Arabia.
With a market capitalization of Rs 61,596 crore, the shares of Alkem Laboratories Ltd made a day high of Rs 5205.45 per share, up by 7.5 percent from its previous day closing price of Rs 4842.40 per share. Over the past five years, the stock has delivered a positive return of 77 percent.
Q1 Highlights
Alkem Laboratories’ revenue for Q1 FY26 came in at Rs 3,371.1 crore, registering an 11 percent growth from Rs 3,031.8 crore in the same quarter last year. Additionally, on a sequential basis, revenue grew by 7 percent from Rs 3,143.7 crore in Q4 FY25.
During the period, sales in India reached an impressive Rs 2,265 crore, showcasing a solid 12 percent growth compared to the same period last year. The domestic market played a significant role, contributing 68.3 percent to the overall sales, up from 67.6 percent in Q1 FY25.
On the international front, sales hit Rs 1,053.9 crore, reflecting an 8.9 percent increase year-on-year (31.7 percent of the total sales). The US market alone brought in Rs 698.2 crore, marking an 8.8 percent growth and accounting for 21 percent of total sales. Meanwhile, non-US sales amounted to Rs 355.6 crore, with a 9.1 percent year-on-year growth, making up 10.7 percent of total sales in Q1 FY26.
Coming to its profitability, the company reported a net profit growth of 21 percent to Rs 667.9 crore in Q1 FY26 as compared to Rs 550 crore in Q1 FY25. Additionally, on a QoQ basis, it grew by 107 percent from Rs 322.4 crore.
Additionally, the company also mentioned that it will establish a subsidiary in Saudi Arabia, partnering with Mr. Abdulaziz Alsheikh. Alkem Laboratories will hold a 51 percent stake, and the balance 49 percent stake will be held by Mr. Abdulaziz Alsheikh.
This new venture will focus on manufacturing, importing, marketing, and distributing pharmaceutical and nutraceutical products. This strategic decision is all about boosting their presence in the region and is expected to be finalized within a year through a cash investment, with costs being determined at the time of incorporation.
Alkem Laboratories Ltd., which ranks as India’s fifth-largest pharmaceutical company, boasts over fifty years of experience in providing top-notch medicines. The company leads the way in areas like anti-infectives, gastrointestinal health, pain management, and supplements, while also branching out into chronic therapies such as diabetes, neurology, dermatology, and urology.
With 18 state-of-the-art manufacturing facilities and robust R&D centers, Alkem focuses on developing generic formulations, active pharmaceutical ingredients (APIs), and biosimilars. Additionally, it has a strong foothold in markets across the US, Latin America, Australia, and various Asian countries.
Written by Satyajeet Mukherjee
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
