According to the latest company data, Alkem Labs Ltd. reported a 25.11% decline in consolidated net profit to ₹251.11 crore for the fourth quarter of fiscal 2026, compared to ₹306 crore in the same period of fiscal 2025. However, the company demonstrated strong revenue growth with consolidated revenue advancing 14.62% year-on-year to ₹3,603.32 crore from ₹3,144 crore in the corresponding quarter of the previous fiscal. The company's shares responded positively to the results, gaining 2.34% to ₹5,580 following the announcement. As per Business Standard, the profit decline was primarily attributed to exceptional items including ₹60.27 crore incremental liability towards gratuity and leave enhancement for past service cost following finalization of central rules under labour codes and ₹74.7 crore towards impairment of real estate investments.
As reported by the company, profit before exceptional items and tax jumped 40.74% YoY to ₹557.82 crore in Q4 FY26, indicating strong underlying business performance. EBITDA stood at ₹517.4 crore, up 32.2% YoY, with EBITDA margin improving to 14.4% in Q4 FY26 as against 12.4% in Q4 FY25. During the quarter, R&D expenses stood at ₹229.3 crore, up 44.67% compared with ₹158.5 crore in Q4 FY25 and accounted for 6.4% of total revenue. The margin expansion indicates better operational efficiency despite the overall profit decline.
According to the latest data, Alkem Labs showed strong performance across both domestic and international markets during Q4 FY26. India sales were ₹2,324.5 crore, up 8.8% YoY, while international sales stood at ₹1,222.3 crore, up 25.4% YoY. The company's diversified geographic presence contributed to the overall revenue growth, with both domestic branded generics and international business delivering strong performance as noted by CEO Vikas Gupta.
On an annual basis, the company's consolidated net profit rose 6.3% to ₹2,301.80 crore in FY26 compared with ₹2,165.48 crore in FY25, while revenue from operations jumped 13.48% to ₹14,712.27 crore in FY26 compared with ₹12,964.52 crore in FY25. As reported by the company, Alkem Labs has appointed Madhurima Singh as Executive Director for a five-year term from December 20. CEO Vikas Gupta expressed satisfaction with the company's performance, stating that Alkem recorded its highest ever EBITDA in FY26 and expects healthy growth across businesses in FY27 supported by increasing contribution from chronic therapies.
The company's board has recommended a final dividend of ₹10 per equity share of ₹2 each for financial year ended March 31, 2026, with the record date fixed as August 7, 2026 and payment scheduled from September 1, 2026. Based on analyst consensus, the company has an average target price of ₹5,870.84 with a high estimate of ₹6,913.00 and low estimate of ₹4,360.00, implying an upside potential of 9.12% from current levels. The consensus recommendation from 17 brokerage firms shows an average brokerage recommendation of 2.4, indicating an "Outperform" status, with GuruFocus estimates suggesting an estimated GF Value of ₹6,681.99, implying a 24.20% upside from current levels.
