Shares of Alkem Laboratories saw an increase of over 6 percent in early trading on Friday but ultimately closed unchanged after the company announced strong revenue growth for the March quarter and provided an optimistic outlook for FY27. Management emphasized potential growth opportunities in India, the US, and various international markets.
The stock peaked at ₹5,789 on the NSE, before settling at ₹5,498. Investor sentiment reflected management’s confidence in sustained growth prospects, driven by new product launches, the traction of semaglutide, and a robust pipeline in the US market, despite facing challenges regarding quarterly profitability.
For the quarter ending March 2026, Alkem Laboratories reported a consolidated profit after tax of ₹251.1 crore, a decline from ₹322.4 crore in the same period the previous year. Revenue from operations rose to ₹3,603.3 crore from ₹3,143.7 crore year-on-year.
The board of directors has proposed a final dividend of ₹10 per equity share. Management anticipates that domestic formulations will grow at a rate outperforming the Indian pharmaceutical market by 100-150 basis points in FY27, buoyed by improving demand and new products like semaglutide. Additionally, the company expects single-digit year-on-year growth in the US market in constant currency terms, supported by new product introductions which are expected to mitigate pricing erosion in its core business.
Alkem announced that the generic drug Tolvaptan has received US FDA approval and is set for release in September or October 2026, with expectations of limited competition. Management also projects higher teens year-on-year growth in markets outside the US for FY27.
EBITDA margin guidance for FY27 remains between 20-21 percent. In Europe, Alkem has secured approvals for the biosimilars Proair and Xgeva, with a commercial partner onboard for Proair’s launch. Additionally, the Occlutech deal is anticipated to conclude within 45-60 days.
Regarding analyst ratings, Macquarie has maintained an underperform rating with a target price of ₹4,900, noting that Q4 profitability fell short of estimates, even though guidance was generally consistent. The brokerage underscored management’s expectation that the India branded generics business will outpace the Indian pharmaceutical market, identifying semaglutide as a significant growth driver.
Jefferies has upheld a buy rating but slightly adjusted its target price from ₹6,550 to ₹6,500. The brokerage cited that Q4 performance exceeded expectations, with the US and rest-of-the-world operations showing strong performance, while stable growth guidance for FY27 and consistent margins reassured investors despite cost challenges.
Motilal Oswal, a domestic brokerage, raised its FY27 and FY28 earnings forecasts by 3 percent and 5 percent, respectively, due to a limited-competition pipeline in the US market, growth potentials from semaglutide, and a reduced effective tax rate. It has valued the stock at 28 times its 12-month forward earnings, setting a target price of ₹5,840.
Choice Institutional Equities suggested that launch-driven growth momentum is likely to persist, bolstered by products including Valsartan, Tolvaptan, and biosimilars, though cautioning that margin expansion may slow in the near term. The brokerage has revised its FY27 and FY28 earnings estimates downward and retained a target price of ₹5,755, while also pointing out additional upside potential from the Medtech and Contract Development and Manufacturing Organization (CDMO) sectors.
Published on May 29, 2026.
