Alkem Laboratories Q4FY26: shares jump 6% on guidance

Stock climbs to a more than three-month high

Alkem Laboratories shares rallied after the company reported a “healthy” set of March-quarter (Q4FY26) earnings on Thursday. The stock rose more than 6% and touched a more than three-month high of INR 5,789 before coming off the highs. On BSE, the shares gained 5.5% and logged an intra-day high of INR 5,757 per share. By 9:20 AM, the stock had pared some gains and was up 5.41% at INR 5,747.05 per share. The move came as investors reacted to a broad-based beat on revenue, EBITDA and profit after tax (PAT), as noted in the report. Brokerages, while pointing to near-term margin headwinds, highlighted growth visibility in the domestic business and potential earnings support from a lower tax rate.

What drove the buying interest

The buying was attributed to results coming in ahead of Street estimates across key lines - revenue, EBITDA and PAT. The report also said guidance surprised positively. Management guided for double-digit growth in India formulations and high single-digit growth in the US in constant currency, both described as ahead of analyst forecasts. High demand for Semaglutide was cited by analysts as a major tailwind for Alkem’s India business. Separately, expectations around a lower tax rate as the company adopts the new tax regime were highlighted as supportive for earnings per share (EPS). The combination of earnings momentum and guidance helped lift the stock in early trade.

FY27 guidance highlights cited by brokerages

Nomura’s note, as captured in the report, described FY27 guidance as “in line to ahead of estimates.” The company expects double-digit India formulations growth. It also guided for high single-digit US growth in constant currency. For international markets excluding the US, guidance pointed to high-teens growth. On profitability, EBITDA margin is expected at 20-21% for FY27. These points formed the basis of brokerage updates that followed the results.

Near-term margin headwinds still on the radar

Even as brokerages turned positive on the growth outlook, the report flagged caution around near-term margin headwinds. The discussion did not quantify the headwinds, but it framed them as a reason some houses remained measured in their stance. The focus, instead, stayed on what could offset pressure - higher domestic growth, traction in select segments, and tax-rate benefits. Guidance around margins (20-21% EBITDA margin for FY27) was one of the key reference points for investors assessing the path ahead.

Brokerage calls: targets, upgrades and stance

Brokerage commentary in the report showed a range of views despite a broadly constructive tone on growth. ICICI Securities retained a ‘neutral’ stance with a target price of INR 5,840. Motilal Oswal Financial Services also stayed ‘neutral’ and raised its target to INR 5,840 from INR 5,540. Nomura retained a ‘buy’ rating with an unchanged target of INR 6,890. Choice Institutional Equities maintained an ‘add’ rating but cut its target to INR 5,755 from INR 5,995. Separately, another ‘ADD’ view in the report updated its target price to INR 6,230, based on a multiple of 28 times FY28 EPS.

Tax-rate shift and the EPS lever

A key earnings lever discussed was the lower tax rate as Alkem adopts the new tax regime. The report cited a lower tax rate estimate of 27-29%. Nomura also said the lower tax rate “will have a positive impact on the reported EPS.” Another brokerage note said it adjusted EPS projections upward by 2% and 6% for FY27 and FY28, respectively, factoring in performance in FY26, an optimistic outlook, and a decreased effective tax rate. While the report did not provide the company’s Q4FY26 tax line, the direction of travel on effective tax rate was repeatedly positioned as supportive for earnings.

Biosimilars, Enzene and Occlutech in focus

ICICI Securities highlighted tailwinds from Alkem’s biosimilar division through its Enzene subsidiaries. The same note also referenced the acquisition of Occlutech as part of the growth drivers it is tracking. In a separate business update included in the provided text, Alkem’s biosimilars arm Enzene Biosciences launched Pertuza, a biosimilar of Roche’s Perjeta (Pertuzumab) for HER2-positive breast cancer. The report also noted that in 2024, the innovator brand recorded net sales of over 3.6 billion Swiss francs (nearly INR 38,500 crore). These developments help explain why some analysts are factoring in incremental growth optionality from biosimilars.

A look back at Q2 FY26: the most detailed numbers available

The provided material also included detailed Q2 FY26 performance, which offers context on Alkem’s recent operating momentum. Total revenue reached INR 4,001.0 crore (INR 40,010.00 million), up 17.2% year-on-year. EBITDA rose 22.3% to INR 920.8 crore (INR 9,208.00 million), with a 23% margin. Net profit increased 11.1% to INR 765.1 crore (INR 7,651.00 million). Domestic sales were INR 2,766.0 crore (INR 27,660 million), growing 12.4% YoY and contributing nearly 69.9% of total revenue. International operations recorded INR 1,189.0 crore (INR 11,890 million), up 29.5% YoY, and the US business contributed INR 764 crore, up 28% year-on-year.

Market context: levels and consensus markers

The report also referenced broader market positioning indicators for the stock. As of November 14, 2025, Alkem Laboratories was trading at INR 5,713.80, which was 2.62% below its 52-week high of INR 5,867.50. It had gained 27.00% from its 52-week low of INR 4,498.90. Another line in the material noted: “HOLD Current Mean Recos by 19 Analysts,” while also showing a “Buy” label and a target of INR 5,900. Taken together, these datapoints indicate the stock has already moved meaningfully within its 52-week range, with consensus targets clustering in the mid-INR 5,000s to high-INR 6,000s depending on the house.

What to watch next

From the information provided, the next set of signposts for investors is execution against FY27 guidance across India formulations, the US business in constant currency, and international markets excluding the US. EBITDA margin delivery within the guided 20-21% band will remain a key operating metric, particularly given the mention of near-term margin headwinds. Watch for updates on the tax-rate transition to the new regime and how quickly the effective tax rate moves toward the 27-29% range cited by analysts. Developments in biosimilars through Enzene and integration progress on Occlutech are likely to remain in focus in brokerage models. For now, the market reaction suggests investors are placing weight on the combination of earnings outperformance and clearer growth guidance.