Alkem Laboratories Limited (ALKEM)
Mid CapPharma stocks · Mid cap · NSE
Alkem Laboratories is a leading Indian pharmaceutical company with over 50 years of operations, ranking #3 in prescriptions and #6 by value in the Indian Pharmaceutical Market (IPM). It has a strong presence in domestic formulations, US generics, and non-US international markets, supported by significant R&D and a large field force.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend argues for patience, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 0/100PAT -22% YoY · margin compression · Rev +11% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,740 Cr | +10.9% | +3.8% |
| EBITDA | ₹766 Cr | +3.7% | +48.2% |
| Operating margin | 20.0% | -200 bps | +600 bps |
| PAT | ₹521 Cr | -22.0% | +107.6% |
| PAT margin | 13.9% | -589 bps | +696 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Alkem reported robust Q4 FY26 revenue growth of 14.6% YoY to ₹36,033 Mn and EBITDA growth of 32.2% YoY to ₹5,174 Mn. However, PAT declined 22.7% YoY to ₹2,365 Mn due to ₹1,350 Mn in exceptional items, including gratuity liability and real estate impairment. FY26 saw 13.5% YoY revenue growth and 6.3% YoY PAT growth.
Strong revenue and EBITDA growth across all segments, particularly US and Non-US, indicates healthy underlying business momentum. Domestic outperformance against IPM in key therapies is encouraging. However, the significant impact of exceptional items on Q4 PAT and the Form 483 for Daman facility warrant close monitoring.
Revenue by Geography (Q4 FY26)
Latest issuer-disclosed distribution across 3 reported categories.
Domestic Market Outperformance
Outperformed IPM in six key focus therapies in Q4 FY26 and seven in FY26, with 15+ years of leadership in Anti-Infectives.
New US Launches & Volume
Strong growth traction in new launches and volume increase drove US business revenue growth of 26.2% YoY in Q4 FY26 and 20.3% YoY in FY26.
Strong Brand Families
20 brand families with ₹1000 Mn+ sales in FY26. PAN is the #2 brand in the IPM Top 300. 15 brands rank among the top 3 in their covered market.
Non-US Market Expansion
Non-US business revenue grew 24.1% YoY in Q4 FY26 and 26.7% YoY in FY26, driven by strong growth across all markets.
Domestic Market Growth
Indian Pharmaceutical Market (IPM) grew by 10.1% YoY in Q4 FY26 and 9.0% YoY in FY26, providing a favorable operating environment.
New Product Traction
Continued growth traction from new launches in the US market contributed to strong US business performance.
Exceptional Items
Q4 FY26 PAT was significantly impacted by ₹1,350 Mn in exceptional items, including gratuity liability and real estate impairment.
Regulatory Compliance
Daman (Formulations) facility received a Form 483 in April 2026, indicating observations from the USFDA inspection, with audit response under submission.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison assesses annual growth and seasonality. QoQ is vital for sequential momentum, especially for profitability, which saw a significant Q4 FY26 decline due to exceptional items.
Domestic Formulations Growth
Q4 FY26 domestic revenue grew 8.8% YoY to ₹23,245 Mn, outperforming IPM by 100 bps. FY26 domestic revenue grew 9.7% YoY to ₹98,514 Mn, outperforming IPM by 20 bps.
US/Export Growth
Q4 FY26 US business revenue grew 26.2% YoY to ₹7,681 Mn. FY26 US business revenue grew 20.3% YoY to ₹29,845 Mn. Non-US business grew 24.1% YoY in Q4 FY26 and 26.7% YoY in FY26.
Launch Pipeline/Approvals
In Q4 FY26, 5 ANDAs were filed and 4 ANDAs approved. For FY26, 8 ANDAs and 1 BLA were filed, with 17 ANDAs approved. Total 192 ANDAs filed, 167 approved as of Mar 31, 2026.
USFDA Observations
Daman (Formulations) received Form 483 in Apr-26; audit response is under submission. Baddi (Formulations) received EIR in June 2024. Taloja R&D, Ankleshwar, Mandva, California facilities have no observations or EIR received.
Focus on Brand Building
Management emphasizes building robust brand franchises and consistently scaling them, with 20 brand families exceeding ₹1000 Mn in FY26.
Strategic Initiatives
Recent strategic moves include the acquisition of Adroit and Bombay Ortho, and the carve-out of the trade generics business into Alkem Wellness.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Daman Facility Regulatory Status | Form 483 received, response under submission. | Resolution of Form 483 and receipt of EIR. |
| US ANDA Approvals/Launches | 4 ANDAs approved in Q4 FY26, 17 in FY26. | Continued pace of ANDA approvals and successful new product launches. |
| Domestic Market Outperformance | 100 bps vs IPM in Q4 FY26, 20 bps in FY26. | Sustained outperformance against the Indian Pharmaceutical Market in key therapies. |
| EBITDA Margin | 14.4% in Q4 FY26, 20.4% in FY26. | Stability and improvement in core operating margins, especially post exceptional items. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
34Bearishfull bear SMA stack · SMA20 -5.0% / mo · MACD − · near 52W low · sector +2.2pp vs Nifty (3M)
Technical chart
ALKEMdaily · 1Y · AUTO-6.5%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 32.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~5.2% over last month) — short-term momentum negative.
- RSI(14) at 32 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- Within 5% of 52-week low — testing support.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is within 5.0% of the 30-week proxy.
- The 30-week proxy changed -0.9% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
Valuation & score drivers
U-Score 51 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 51 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 11/15 to the score.
- Quality contributes 13/20 to the score.
Main drags
- Fair-value margin of safety is negative at -19.3%.
- Valuation is weaker at 2/30; verify the latest quarterly trend.
- Growth is weaker at 13/25; verify the latest quarterly trend.
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +3 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 88th percentile of the scored universe and 83rd percentile within Pharma. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero. Key concern: Promoter holding fell 1.5%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Pharma: 83rd pctile, median 70 · Mid: 68th pctile, median 76
158 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 2.9%.
- ▸6 years of positive FCF.
- ▸Debt/equity is 0.10.
Trust risks
- ▸Promoter holding fell 1.5%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 27.30
- P/B
- 4.49
- EV/EBITDA
- 18.51
- Market Cap
- 62054.00Cr
Profitability
- ROE
- 18.90%
- ROCE
- 21.20%
- ROA
- 10.57%
- Dividend Y
- 1.02%
Growth (CAGR)
- Revenue 5Y
- 11.00%
- EPS 5Y
- 9.00%
- Revenue 3Y
- 8.00%
- EPS 3Y
- 32.00%
Balance Sheet
- Debt/Equity
- 0.10
- Interest Coverage
- 17.03×
- Altman Z
- 7.66
- Book Value
- 1156.00
Cash Flow
- FCF Yield
- 2.90%
- FCF Positive Y
- 6/5
- OCF
- 1682.00 Cr
- EPS TTM
- 180.45
Shareholding
- Promoter Hold
- 49.70%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 13%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in Pharma, ranked by similarity
Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.