Alkem Labs Q2 profit falls 12% to ₹675 crore

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 Alkem Laboratories Limited ( ALKEM ) reported an 11.7% year-on-year decline in consolidated net profit to ₹675.34 crore in Q2 FY27. Revenue from operations increased 13.8% to ₹4,552 crore. What happened? EBITDA grew 11.3% to ₹1,025 crore. However, the EBITDA margin contracted to 22.5% from 23% a year ago. Business-wise: India sales: Increased 9.5% to ₹3,027.5 crore. International sales: Grew 22.3% to ₹1,454 crore. US sales: Increased 2.4% to ₹783 crore. Non-US international sales: Rose 58% to ₹671 crore. Biotech sales: Declined 35% to ₹70.4 crore. The company also appointed Gopal Kothari as its Chief Financial Officer, effective December 2, 2026. Why does it matter? International business growth, particularly outside the US, is supporting overall revenue. However, the decline in net profit despite higher revenue and EBITDA reflects pressure on the bottom line. My view The international business is emerging as an important growth contributor, while the US market continues to face pricing pressure. Higher research and development spending and the performance of the biotech business are also important factors to monitor. Revenue growth alone will not be enough unless it translates into stronger net profitability. What I am watching next I would track domestic market growth, international sales mix, US pricing pressure, R&D spending and margin recovery. The integration of Occlutech into the MedTech business is another area to watch. No Recommendations Source: NDTV Profit Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in Alkem Laboratories Limited.