Alkem non-US sales rise 58% after Occlutech integration in Q2 FY27

Alkem reported non-US sales of Rs 671 crore in Q2 FY27, up 58% year-on-year after Occlutech was integrated from the quarter; excluding Occlutech, non-US sales growth was 29%. The international business contributed 15% of total sales, compared with 14% in Q2 FY26, reflecting both underlying expansion and MedTech inclusion.

How much did Alkem’s non-US business grow in Q2 FY27?

Alkem’s non-US sales grew 58% year-on-year to Rs 671 crore in Q2 FY27 from Rs 424.1 crore in Q2 FY26. The business also grew 40% quarter-on-quarter, according to the presentation, and represented 15% of Q2 FY27 sales. That share was one percentage point above the 14% contribution reported in Q2 FY26.

Alkem said that excluding Occlutech, non-US sales increased 29% year-on-year and 14% quarter-on-quarter in Q2 FY27. The 29-percentage-point difference between reported and excluding-Occlutech year-on-year growth shows that Occlutech affected the scale and mix of the international business during the quarter. The corresponding gap in quarter-on-quarter growth was 26 percentage points.

Across the five Q2 periods shown, Alkem’s non-US sales rose from Rs 225.1 crore in Q2 FY23 to Rs 671 crore in Q2 FY27. The increase in Q2 FY27 was Rs 246.9 crore from Q2 FY26, compared with a Rs 103.6 crore increase between Q2 FY25 and Q2 FY26. Alkem attributed Q2 FY27 growth to double-digit growth in Latin American, or LATAM, markets.

What did Occlutech change in Alkem’s international sales?

Occlutech was integrated from Q2 FY27, and Alkem included its sales in the quarter’s MedTech and non-US figures. Alkem reported Q2 FY27 MedTech sales including Occlutech of about Rs 133.1 crore. As this figure is lower than the Rs 671 crore non-US sales line, the presentation does not provide a basis to isolate Occlutech revenue from the geographic segment.

The disclosed comparison separates total non-US growth from growth excluding Occlutech rather than quantifying Occlutech sales. Reported year-on-year growth was 58%, while the excluding-Occlutech measure was 29%. Reported quarter-on-quarter growth was 40%, compared with 14% excluding Occlutech. These growth-rate gaps should not be treated as a disclosed calculation of Occlutech’s sales contribution.

Alkem describes MedTech as a new growth engine, with products in musculoskeletal and cardiovascular segments. Its MedTech infrastructure includes three manufacturing facilities across India, Germany and Turkey, two research and development facilities in Germany and Turkey, and a portfolio covering knee, hip and structural-heart products. These details show that the Occlutech integration adds device operations to Alkem’s overseas business.

How does MedTech fit alongside Alkem’s biotech business?

Alkem reported Q2 FY27 biotech sales of about Rs 70.4 crore, down 35% year-on-year, while MedTech sales including Occlutech were about Rs 133.1 crore. MedTech sales were therefore about Rs 62.7 crore higher than biotech sales based on the rounded figures provided. The disclosed trends differ: biotech sales fell year-on-year, while MedTech included Occlutech from Q2 FY27.

Alkem’s biotech business has commercialised biosimilar products in India, Germany, Spain and Mexico. The company also reported European Medicines Agency approval for a Denosumab vial presentation and marketing authorisation for Denosumab in South Korea. Alkem identified itself as the fifth Indian company with a monoclonal antibody, or mAB, in Europe.

Alkem’s biotech capabilities include mammalian and microbial manufacturing in Pune, a contract development and manufacturing organisation, or CDMO, plant in the United States, and research work covering clone development, upstream and downstream processing, and analytical services. MedTech, by comparison, has manufacturing and research facilities in India, Germany and Turkey. The Q2 FY27 sales figures place MedTech above biotech in reported revenue for the quarter.

How does non-US growth compare with Alkem’s other businesses?

Alkem’s 58% reported non-US sales growth was faster than domestic sales growth of 9.5% and US sales growth of 2.4% in Q2 FY27. Domestic sales reached Rs 3,027.5 crore and contributed about 68% of sales, while US sales were Rs 783 crore and contributed 17%. Non-US sales of Rs 671 crore contributed 15%, making it the smallest of the three reported geographic revenue pools.

Alkem’s US business increased to Rs 783 crore in Q2 FY27 from Rs 764.9 crore a year earlier, with growth largely led by volumes, according to the company. Alkem also reported mid-teens price erosion owing to additional competition in select US products. In India, branded business grew 12.1%, while trade generics grew at a mid-single-digit rate, supporting the domestic segment’s 9.5% sales expansion.

At group level, Alkem reported revenue from operations of Rs 4,552 crore in Q2 FY27, up 13.8% year-on-year from Rs 4,001 crore. Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 11.3% to Rs 1,025.2 crore, while profit after tax fell 11.7% to Rs 675.3 crore. The non-US segment’s 58% growth therefore outpaced group revenue growth, although Alkem separately identified Occlutech as a factor in that comparison.

Conclusion

Alkem’s Q2 FY27 results show that non-US sales became a 15% share of revenue while rising to Rs 671 crore. The distinction between 58% reported growth and 29% growth excluding Occlutech separates the contribution of underlying international expansion, including double-digit LATAM growth, from the effect of integrating a MedTech business.

The main unresolved disclosures to watch are whether Alkem continues to provide an excluding-Occlutech growth comparison, how MedTech sales develop after the Q2 FY27 integration, and whether biotech’s 35% year-on-year sales decline changes. Alkem has also disclosed MedTech manufacturing across three facilities and research operations across two facilities, alongside biosimilar commercialisation in India, Germany, Spain and Mexico.