Mumbai-based pharma company posts a 21.7% drop in net profit for Q1 2026, citing higher tax costs and margin pressure, even as revenue rises by 10.9% amid strategic investments and international growth.
Alkem Laboratories posted a weaker first quarter despite stronger sales, with profit falling as tax costs climbed and margins softened. The Mumbai-based drug maker reported consolidated net profit of Rs 520 crore for the quarter ended June 30, 2026, down 21.7% from Rs 664 crore a year earlier, even as revenue from operations rose 10.9% to Rs 3,740 crore.
Operating income still improved, with earnings before interest, tax, depreciation and amortisation rising 3.7% to Rs 766 crore. But the EBITDA margin slipped to 20.5% from 21.9% a year earlier, suggesting costs rose faster than revenue. The sharpest drag on the bottom line came from tax expense, which jumped to Rs 251 crore from Rs 103 crore in the same quarter last year.
Sandeep Singh, managing director of Alkem, said the company had begun FY27 “on a steady note”, pointing to healthy growth in India and overseas markets. In comments released with the results, Singh said the domestic business continued to outperform the market and that non-US international markets delivered strong growth, while also acknowledging the need to improve execution, regulatory priorities and consistency across the business. He added that the company is investing in research and development, MedTech and biotech as it looks to support its next phase of growth.
The company also said it has approved an investment of up to Rs 75 crore for a new block at its existing manufacturing facility in Baddi, Himachal Pradesh. In its regulatory filing, Alkem said the trading window will open on August 17.
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