Alkem Laboratories shares gained 5.5% on BSE, logging an intra-day high of ₹5,757 per share, after the company released its Q4FY26 results on Thursday. The buying was driven by a broad-based beat — revenue, Earnings before interest, tax, depreciation and amortisation (Ebitda), and profit after tax (PAT) all came in ahead of estimates. However, at 9:20 AM, Alkem Laboratories' share price pared some gains and was up 5.41% at ₹5,747.05 per share. In comparison, the BSE Sensex was up 0.32% at 76,112.32.
In the March quarter, Alkem Laboratories reported a fall in consolidated net profit by 22.7% year-on-year (Y-o-Y) for the fourth quarter (Q4) of the financial year 2025-26 (FY26) to ₹236 crore. However, revenue from operations rose 14.6% to ₹3,603 crore. The profit was impacted by one-time exceptional items and a higher tax charge. According to reports from Business Standard, the company's Ebitda came in 11% ahead of estimates, aided by gross margin of 65.4% — up 606 basis points (bps) Y-o-Y and 420 bps ahead of estimates.
Profit after tax (PAT) was impacted by an exceptional loss of ₹135 crore — comprising a real estate impairment of ₹74.7 crore and Labour Code impact of ₹60.3 crore — and a higher effective tax rate. As reported by Business Standard, the company's move to the new tax code from FY27 will lower the effective tax rate to 27-29% from Nomura's earlier estimate of 36% — a positive for reported EPS. The pending Occlutech acquisition is expected to close in 45-60 days and is not yet factored into Nomura's estimates.
The company's FY27 guidance was in line to ahead of estimates, with the company guiding for double-digit India formulations growth, high single-digit US growth in constant currency, and high-teens growth in international markets excluding the US. A key positive was the early confirmation of gJynarque (Tolvaptan) launch in September-October 2026, ahead of Nomura's FY28 estimate. Ebitda margin is expected at 20-21% for FY27, with the brokerage expecting revenue to sustain low to mid-teens growth driven by new launches and scale-up of recent acquisitions.
Nomura maintains a Buy rating with a target of ₹6,890, while Motilal Oswal Financial Services has raised its target to ₹5,840 from ₹5,540 with a Neutral rating. Choice Institutional Equities maintains an Add rating but cut its target to ₹5,755 from ₹5,995. The brokerages expect revenue to sustain low to mid-teens growth, with upcoming launches including Valsartan, Tolvaptan, and select biosimilars expected to help offset pricing headwinds. Ebitda margin is expected in the range of 20-21% for FY27, with a further approximately 100 bps expansion likely in FY28.
