Alkem Labs Q2 results 2026: profit falls 14.4%
Alkem Laboratories reported consolidated revenue from operations of Rs 4,551.99 crore and profit for the period of Rs 667.13 crore for July to September 2026.
Published 13 November 2026 · Potoos Research Services
The short answer. Consolidated revenue rose 13.8% from a year earlier and profit before tax rose 11.6%. Profit for the period still fell 14.4%, because the tax expense rose to Rs 331.91 crore from Rs 116.23 crore. The board meeting did not declare a dividend.
Quarter at a glance
Consolidated figures in Rs crore (the filing reports in Rs million; 10 million = 1 crore). Change compares the same quarter a year earlier.
| Measure | Jul-Sep 2026 | Jul-Sep 2025 | Change |
|---|---|---|---|
| Revenue from operations | 4,551.99 | 4,000.99 | +13.77% |
| Other income | 134.21 | 103.69 | +29.43% |
| Profit before exceptional items and tax | 964.65 | 895.83 | +7.68% |
| Exceptional item (gain) | 35.00 | nil | not applicable |
| Profit before tax | 999.65 | 895.83 | +11.59% |
| Total tax expense | 331.91 | 116.23 | +185.56% |
| Profit for the period | 667.13 | 779.11 | -14.37% |
| Profit attributable to owners | 675.34 | 765.06 | -11.73% |
Source: Alkem consolidated financial results, PDF page 6. Percentages are recomputed from the filing figures before rounding.
Consolidated means Alkem plus the companies it controls, added together. Profit attributable to owners is the part that belongs to Alkem's own shareholders. It is higher than total profit this quarter because the part belonging to outside (minority) shareholders in group companies, called non-controlling interest, was a loss of Rs 8.21 crore. Profit for the period also includes Alkem's Rs 0.61 crore share of loss in an associate.
Why did profit fall when revenue rose?
Tax. Profit before tax rose to Rs 999.65 crore, but total tax expense nearly tripled to Rs 331.91 crore. Measured against profit before tax, that is 33.2% this quarter against 13.0% a year earlier (our calculation from the table). Note 4 of the filing says that after the Finance Act, 2026 allowed available MAT credit to be set off under the new tax regime (Section 115BAA of the Income-tax Act), Alkem and one Indian subsidiary chose to move to the new tax regime from 2026-27. MAT is minimum alternate tax. The note says tax in the current period is recognised at the rates of the new regime. The filing does not give a line-by-line breakdown of the quarter's tax rate.
How did each business do?
The segment table splits the group into three businesses. Pharmaceuticals revenue rose 11.8% to Rs 4,347.92 crore and its segment result (profit before interest, other income, exceptional items and tax) rose 26.3% to Rs 1,051.88 crore. Biotech revenue fell 18.0% to Rs 129.79 crore and the segment moved to a loss of Rs 114.14 crore, from a profit of Rs 0.35 crore a year earlier. The filing does not explain the Biotech loss. MedTech revenue was Rs 133.14 crore against Rs 2.70 crore, with a segment loss of Rs 49.63 crore against Rs 6.31 crore. Source: segment table, PDF page 10.
What is the Occlutech deal?
Note 5 says Alkem Medtech Private Limited, a wholly owned subsidiary, completed the acquisition of a 55% stake in Occlutech Holding AG on 16 July 2026. The fair value of the payment was EUR 97.8 million, about Rs 1,079.76 crore: Rs 877.83 crore in cash and Rs 201.93 crore payable later. The deal created goodwill of Rs 703.60 crore on a provisional basis. Occlutech's results are included from 16 July 2026, and the filing says the current period is therefore not comparable with earlier periods. This also helps explain the rise in depreciation to Rs 137.08 crore from Rs 93.61 crore, though the filing does not split that rise by cause.
What was the exceptional item?
Note 3 says the Rs 35.00 crore exceptional item is a recovery against an investment that was written down (impaired) in the quarter and year ended 31 March 2026. An exceptional item is a one-off gain or charge shown separately from regular business.
Why is standalone profit higher than consolidated?
Standalone profit, for Alkem the parent company alone, was Rs 762.48 crore, above the consolidated Rs 667.13 crore. The standalone cash-flow statement shows dividend income from subsidiaries of Rs 5.64 crore for April to September 2026. That income drops out on consolidation, because it is money moving inside the group, but it is small next to the gap. The standalone results cover only the parent, which reports one segment, Pharmaceuticals (standalone note 6), while the consolidated segment table includes the Biotech and MedTech losses. The filing does not give a full bridge between the two profit figures. Source: standalone results, PDF pages 12 and 14.
What else did the board decide, and what else was filed?
The 12 November outcome letter covers approval of the standalone and consolidated results. It does not announce a dividend, bonus, split, share repurchase, fund raise or stake sale. In a separate filing the same day, the company said the board appointed Gopal Kothari as Chief Financial Officer from Wednesday 2 December 2026.
Earlier, on 21 October 2026, Alkem told the exchanges that its Audit Committee had approved a forensic audit by Grant Thornton Bharat LLP into a recent incident of alleged misappropriation of funds by a former employee, covering procurement and certain transactions. A forensic audit is a detailed investigation of records. The results filing does not mention this matter.
What the auditor said
Deloitte Haskins & Sells LLP issued a limited review report with an unmodified conclusion. A limited review is a lighter check than a full audit. The report says the figures of 28 subsidiaries were not reviewed by their auditors; they show a combined net loss of Rs 28.42 crore for the quarter, and management says they are not material to the group. Five other subsidiaries were reviewed by other auditors. Source: auditor's review report on consolidated results, PDF pages 2 and 3.
Sources
- Alkem Laboratories outcome of board meeting and unaudited results for the quarter ended 30 September 2026. 12 November 2026. PDF page 1, outcome letter; pages 2 and 3, review report; page 6, consolidated results; page 9, notes 3 to 5; page 10, segment table; page 12, standalone results; page 14, standalone cash flow; page 15, standalone notes.
- Alkem Laboratories appointment of Chief Financial Officer. 12 November 2026. PDF page 1.
- Alkem Laboratories intimation regarding initiation of forensic audit. 21 October 2026. PDF page 1.
Sources checked on 12 November 2026. Information cutoff: 12 November 2026, 21:00 IST
Common questions
Why did Alkem's profit fall in Q2 when revenue grew?
Total tax expense rose to Rs 331.91 crore from Rs 116.23 crore. Note 4 links this to the move to the new tax regime from 2026-27. Profit before tax itself rose 11.6%.
Did Alkem declare a dividend with its Q2 results?
No. The 12 November 2026 outcome letter covers the results only.
Are Occlutech's numbers in last year's figures?
No. Occlutech is included from 16 July 2026, and the filing says the current period is not comparable with earlier periods.
Potoos Research, SEBI-registered Research Analyst. Registration number INH000027380. SEBI is the Securities and Exchange Board of India.