ALKEM LABORATORIES LTD. FALLS 14.37% ON Q2

ALKEM Alkem Laboratories on Thursday reported a 14.37 per cent year-on-year decline in consolidated net profit for the September quarter of FY27, primarily due to an increase in expenses. The pharmaceutical company had posted a net profit of Rs 779.11 crore in the corresponding quarter of the previous financial year. However, revenue from operations increased 13.77 per cent during the second quarter, compared with Rs 4,000.99 crore in the year-ago period, according to the company's regulatory filing. Total expenses climbed to Rs 3,721.55 crore during the quarter under review from Rs 3,208.85 crore in the corresponding period last year. Alkem's India business revenue grew 9.5 per cent, while revenue from its international business increased 22.3 per cent. The company's EBITDA margin came under pressure due to higher investments in Enzene Biosciences and Occlutech. Brokerages remain divided over Alkem's growth outlook, with particular focus on margin recovery and the contribution of its newer businesses. Nuvama Institutional Equities highlighted that 11 per cent growth in Alkem's domestic business was supported by higher semaglutide sales, expansion in chronic therapies and a favourable brand mix. The brokerage maintained a positive outlook on the company's prospects, identifying higher tolvaptan sales, a potential breakeven in Enzene Biosciences' contract development and manufacturing operations, and the US launch of its denosumab biosimilar as key growth drivers for FY28.