Alkem Laboratories

Alkem Laboratories, a prominent pharmaceutical company, achieved impressive Q2 earnings with a focus on inorganic growth opportunities and robust margin expansion. 

Alkem Laboratories Q2 Performance

Alkem Laboratories reported impressive Q2 results, with an 87.5% increase in net profit, reaching Rs 620.50 crore, and a nearly 12% rise in revenue, totaling Rs 3,440 crore. 

Exceeding Expectations

Both net profit and revenue surpassed CNBC-TV18's estimates of Rs 436.40 crore and Rs 3,366 crore, respectively, impressing analysts. 


The EBITDA margin expanded significantly to 21.7% in Q2, outperforming the Street's estimate of 16%, showcasing improved operational performance. 

Factors Behind Earnings Beat

Alkem's strong Q2 performance was attributed to an improved product mix in the US and lower input costs, contributing to margin growth. 

Nomura Upgrades Rating

Impressed by the results, brokerage firm Nomura upgraded Alkem's stock rating to 'buy' with a price target of Rs 4,963, emphasizing the company's potential for inorganic growth. 

Outlook for India Business

Alkem anticipates high-single-digit FY24 growth in its India business despite Q2's 5% rise, with a boosted 16.5% margin forecast, but Q4 may face seasonality challenges.