Alkem Laboratories Q3 Results: Net Profit Rises 6% to ₹641 Cr, Revenue Growth Flat, Stock Drops 4%
Alkem Laboratories Limited: Overview
Alkem Laboratories Limited is one of the major pharmaceutical companies in India located in Mumbai, India, which is well known for producing good quality generic and specialty drugs. The company engages in development, manufacturing, and marketing of pharmaceutical generics, formulations, and nutraceuticals in domestic as well as international markets. Alkem has 21 manufacturing facilities, out of which 19 are in India and 2 are in the United States, and it provides a wide range of products across various therapeutic segments, such as anti-infective, pain management, and vitamins. It markets its products to several international markets including the US, UK, Australia, Germany, South East Asia and Africa. India is a leading country in the pharmaceutical sector, known for producing cheap vaccines and drugs. Indian pharmaceutical industry is the third largest in the world and has been growing at a Compound Annual Growth Rate (CAGR) of 9.43% over the last nine years. The country also has the greatest number of US FDA-compliant pharmaceutical manufacturing facilities and there are about 500 Active Pharmaceutical Ingredient (API) manufacturers who contribute 8% of the global API market share. As of March 31, 2022, Alkem Laboratories Limited has 3.9% market share in the domestic formulation market thus making it the fifth-largest pharmaceutical company in India.
Latest Stock News
Alkem Acquires Adroit Biomed Ltd.:
Alkem Laboratories has acquired a 100% stake in Adroit Biomed Ltd., a pharmaceutical company specializing in skincare, for approximately ₹140 crore. This acquisition will help Alkem strengthen its presence in the dermatology and cosmetology segments. Alkem Chairman BN Singh stated, “The acquisition of Adroit will allow us to diversify our offerings, enhance market penetration, and solidify our position in dermatology and cosmetology.”
Alkem Expands into Medical Technology:
Alkem MedTech Private Limited, a wholly owned subsidiary of Alkem, is acquiring 100% equity in Bombay Ortho Industries Pvt. Ltd., a manufacturer of orthopaedic implants, for ₹147 crore. This move aligns with Alkem’s strategy to expand into the fast-growing MedTech sector in India. The transaction is expected to be completed by June 30, 2025, subject to regulatory approvals. Managing Director Sandeep Singh remarked, “The MedTech sector in India is growing rapidly, and the demand for implants is substantial. Through this acquisition, we aim to tap into the increasing need for high-quality medical devices.”
Interim Dividend Announcement
Alkem Laboratories has declared an interim dividend of ₹37 per equity share (face value ₹2) for the financial year 2024-25. The dividend will be distributed on or after February 28, 2025.
Segmental information
1. Anti-infectives
Alkem is a market leader in India’s anti-infective therapy segment. This category accounts for 11.8% of the total Indian Pharmaceutical Market (IPM), and Alkem holds the No. 1 position with a broad range of medicines that combat various infections.
2. Gastroenterology
A key player in gastrointestinal therapies, Alkem operates in a segment that contributes 10% of the total IPM value, making it the third-largest therapy area in India. With lifestyle changes and increasing health concerns, this sector is expected to grow significantly over the next decade. Alkem currently holds a 7% market share in this category.
3. Pain Management
Alkem is a leading brand in pain management with popular products such as:
- Aldigesic P (Aceclofenac + Paracetamol) – Used for arthritis, sprains, and musculoskeletal pain
- Alkem Para 500mg – A paracetamol-based tablet for mild to moderate pain relief
- Alkem Piroxicam – Used for joint and muscle inflammation, including osteoarthritis and rheumatoid arthritis
4. Vitamins & Minerals
Alkem manufactures a variety of vitamin and mineral supplements, including calcium, vitamin D, vitamin B12, zinc, magnesium, and boron. Notable products include Hemfer XT (iron supplement) and GEMCAL D3 (calcium + vitamin D3).
5. Neurology & CNS (Central Nervous System)
Alkem is among the top 10 pharmaceutical companies in India for neurology and CNS therapies. Its products support treatments for Alzheimer’s, dementia, stroke, migraines, epilepsy, depression, and neuropathic pain. Over the past four years, Alkem has outperformed competitors in this segment, securing the 5th position in the Indian market (AIOCD MAT June 2019).
6. Cardiology
Alkem is an emerging player in the cardiology segment, operating through two divisions: Alkem Aspiria and Alkem Imperia. These focus on hypertension, dyslipidemia, and cardiovascular disease management. The company aims to become a key player in the cardiovascular sector by offering innovative treatment solutions.
Subsidiaries and Global Presence
Domestic Subsidiaries (India)
Wholly Owned Subsidiaries
- Alkem Foundation – CSR and healthcare initiatives
- Alkem Medtech Private Limited – Medical devices & healthcare technology
- Alixer Nexgen Therapeutics Limited – Advanced pharmaceutical research
- Alkem Wellness Limited – Wellness & nutraceuticals
- Connect 2 Clinic Private Limited – Digital healthcare solutions
Other Subsidiaries
- Cachet Pharmaceuticals Pvt Ltd – Pharmaceutical formulations
- Indchemie Health Specialities Pvt Ltd – Specialty medicines
- Enzene Biosciences Limited – Biotechnology & biosimilars
International Subsidiaries
- Europe:
- S & B Holdings S.a.r.l., Luxembourg – Global investment arm
- Ascend GmbH, Germany – European market operations
- Ascend Laboratories (UK) Ltd. – UK market expansion
- North & South America:
- Ascend Laboratories LLC, USA – US generic pharmaceutical market
- Ascend Laboratories Ltd., Canada – Canadian market operations
- Ascend Laboratories S.A.S, Colombia & Chile – Latin American expansion
- Asia-Pacific & Africa:
- Alkem Laboratories Korea Inc. – Expansion in South Korea
- Pharmacor Pty Limited, Australia – Australian market operations
- Pharmacor Ltd., Kenya – African pharmaceutical expansion
Q3 Highlights
- Net profit grew by 6% year-over-year, reaching ₹641 crore in Q3FY24, although it declined 9% from the previous quarter.
- Total income rose by 1.4% year-over-year to ₹3,467 crore, though it saw a 2.3% decline compared to the previous quarter.
- For the first nine months of FY25, net profit increased by over 25% YoY, reaching ₹1,893 crore.
- Following the earnings announcement, Alkem’s stock declined by 4%.
- The company has declared an interim dividend of ₹37 per equity share, payable on or after February 28, 2025.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 3,324.00 | 3,374.00 | 11,599 | 12,668 |
| Expenses | 2,616 | 2,615 | 9,977 | 10,419 |
| EBITDA | 750 | 852 | 4037 | 2946 |
| OPM | 21% | 23% | 14% | 18% |
| Other Income | 42 | 93 | 101 | 186 |
| Net Profit | 604 | 641 | 1,007 | 1,811 |
| NPM | 18.17 | 19.00 | 14.30 | |
| EPS | 49.76 | 52.34 | 140.61 | 187.31 |