Alkem Laboratories reported a 10.9% rise in revenue for the first quarter, driven by strong domestic and international sales, but profit fell by 21.7% due to a sharp increase in tax expenses, highlighting challenges in the company’s recent financial performance.
Alkem Laboratories said Friday that first-quarter profit fell even as revenue rose, highlighting a quarter in which stronger sales were offset by a sharp increase in tax expense. The Mumbai drugmaker reported consolidated net income of Rs 520 crore for the three months ended June 30, down 21.7% from Rs 664 crore a year earlier, according to its exchange filing.
Revenue from operations climbed 10.9% to Rs 3,740 crore, helped by growth in both India and overseas markets. Domestic sales rose 10.3% to Rs 2,497.8 crore, while international revenue increased 16% to Rs 1,222.3 crore. Operating performance also improved, with earnings before interest, tax, depreciation and amortisation, or EBITDA, up 16.2% to Rs 766.6 crore and the margin widening to 20.5% from 19.6% a year earlier.
The profit decline was driven largely by taxation. Alkem’s tax expense jumped to Rs 251 crore from Rs 103 crore in the same quarter last year, which outweighed the benefits of higher revenue and better operating earnings. The company said the quarter started steadily, with Managing Director Sandeep Singh pointing to healthy growth in both India and non-U.S. international markets, while also acknowledging the need to improve execution, regulatory compliance and consistency across the business.
The results follow a mixed but generally resilient run for the company. Business Standard reported that Alkem’s profit fell in the fourth quarter of FY26 because of one-off charges and a higher tax bill, even as revenue grew and full-year earnings improved. Other recent commentary has pointed to the company’s push into new products and therapeutic areas, including semaglutide, as well as expectations for continued international growth and margin support in FY27.
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