Alkem Labs Q2 Review: Dolat Capital Upgrades EPS Estimate For FY26-27 Maintaining Add — Check New Target Price

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Dolat Capital Report

Alkem Laboratories Ltd.’s Q2 FY26 sales were above our estimates due to higher sales across segments. Ebitda came above estimates, mainly due to higher sales, lower than expected research and development and staff cost.

Management expects low-double digit growth in the US in FY26 and India growth to be 100-150 bps above IPM. Ebitda margin in FY26 is expected to be in the range of 19.5-20.0%.

We upgrade our FY26E/FY27E EPS estimates by 3.5%/6.0%, assuming higher sales and Ebitda margin.

We roll over to FY28E and maintain ‘Accumulate’ rating with a revised target price of Rs 6,677 at 19x FY28E EV/Ebitda.

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