Alkem Labs Q2 FY26 Results 2025: Profit Up 11%, Revenue +17%

What Alkem reported for Q2 FY26

Alkem Laboratories posted a higher profit and a faster revenue run-rate in Q2 FY26, backed by stronger sales and an improvement in operating margin. For the September quarter, the company reported consolidated net profit (PAT) of ₹765.06 crore, up 11.10% year-on-year (YoY) from ₹688.64 crore. Consolidated revenue for the quarter came in at ₹4,000.99 crore, compared with ₹3,414.67 crore a year earlier, translating into 17.17% YoY growth.

The company’s Q2 numbers were shared around mid-November 2025, with the results referenced as being shown on 13 November 2025 and also reported as announced on 14 November 2025. The quarter also stood out on operating metrics, with management and market summaries highlighting margin expansion.

Topline growth and sequential momentum

The quarter saw net sales (revenue) rise to ₹4,000.99 crore, up 17.17% YoY from ₹3,414.67 crore in Q2 FY25. The same net sales figure was also described as 18.68% sequentially higher than ₹3,371.14 crore reported in Q1 FY26.

A separate summary of the quarter cited total income of ₹4,104.68 crore in Q2 FY26, compared with ₹3,507.63 crore in Q1 FY26, implying a 17.0% quarter-on-quarter (QoQ) increase. This distinction matters for readers because “revenue/net sales” and “total income” can differ due to other income lines, while still pointing to the same broader direction of growth.

Operating performance: margin at an eight-quarter high

On operating profitability, Alkem’s operating profit (PBDIT excluding other income) was reported at ₹920.77 crore in Q2 FY26. Operating margin improved to 23.01%, described as the highest in eight quarters.

The margin improvement was measured against both the immediately preceding quarter and the year-ago base. Operating margin was cited at 21.92% in Q1 FY26 and 22.05% in Q2 FY25. Another results summary also reported EBITDA of ₹1,024.46 crore for Q2 FY26.

Management commentary attributed the margin improvement to better gross margins, supported by lower raw material cost, reduced intensity of price erosion in the US market, and higher operating leverage.

Profit, tax, and EPS: key line items

On consolidated profit, reported Q2 FY26 PAT stood at ₹765.06 crore, while another summary cited PAT at ₹779.11 crore. The same summary also reported profit before tax (PBT) of ₹895.83 crore, up 16.2% QoQ from ₹771.01 crore, and up 14.8% YoY from ₹780.26 crore.

Tax expense for the quarter was reported at ₹116.23 crore, marking a 13.2% QoQ increase and a 48.4% YoY rise from ₹78.30 crore in Q2 FY25. Earnings per share (EPS) were reported at ₹63.99, up from ₹57.60 in Q2 FY25.

Consolidated versus standalone: what changed

Alongside consolidated performance, the company’s standalone profitability was also highlighted. Alkem reported a standalone PAT of ₹723.66 crore in Q2 FY26, up 12.75% YoY from ₹641.85 crore. Standalone revenue growth for the quarter was reported at 7.95% YoY.

For investors, the consolidated and standalone split is useful because consolidated results capture the full group performance, while standalone reflects the core entity. In this quarter, the consolidated topline growth rate (17.17%) was materially higher than the standalone revenue growth rate (7.95%) as reported in the summary.

India and international sales mix

Geographically, the quarter’s sales mix showed both domestic and overseas strength. India sales were reported at ₹2,766 crore, up 14% YoY. International sales rose 29.5% YoY to ₹1,189 crore, contributing 31.7% to overall revenue.

The sharper growth rate in international sales is consistent with the quarter’s overall revenue acceleration. Management also pointed to reduced price erosion intensity in the US market as part of the margin improvement narrative.

Key numbers at a glance

Valuation snapshot: where Alkem trades versus peers

At the cited market price of ₹5,713.80, Alkem Laboratories was valued at a P/E of 30.06x. The comparison set in the report positioned Alkem at a 12% discount to Mankind Pharma (53.42x), while still trading at a premium to Dr Reddy’s (17.86x), Zydus (18.62x), and Lupin (21.65x).

Why these results matter for investors

The Q2 FY26 print combines three investor-relevant signals present in the reported data: a double-digit revenue increase, an operating margin improvement to 23.01%, and an 11.10% YoY rise in consolidated profit. In addition, international sales growth of 29.5% suggests that the overseas business contributed meaningfully to the quarter’s topline momentum.

At the same time, the quarter also showed a sharp rise in tax expense (as cited in one summary), which can influence how much operating improvement translates into bottom-line growth. Finally, the valuation comparison indicates that the market prices Alkem at a mid-range multiple relative to the listed peer set highlighted in the report.

Closing note

Alkem’s Q2 FY26 results, announced in mid-November 2025, showed stronger revenue growth and improved operating profitability, alongside an increase in consolidated PAT. The next quarterly update and any follow-through on margins, international growth, and tax trajectory will be key data points to watch in subsequent disclosures.