Alkem Labs Share Price Falls 4% After Q4 EBITDA Margin Decline

Market Performance

Alkem Labs' share price declined by 4% on May 30, closing at Rs 5,099 per share. This drop came immediately after the company announced its Q4 FY25 earnings.

Despite reporting a rise in net profits and revenue, the contraction in EBITDA margin raised concerns among investors, which led to a sudden stock movement.

• Current share price: Rs 5,099
• 1-month performance: +4%
• Year-to-date performance (2025): -4%

Main News

Alkem Laboratories posted a net profit of Rs 306 Crore for the fourth quarter of FY25, marking a 4.2% increase compared to Rs 294 Crore in the same quarter of the previous year.

The pharmaceutical company also reported a 7.1% year-on-year increase in revenue, reaching Rs 3,143.8 Crore during the quarter under review.

However, the key concern for the market was the decline in EBITDA margin, which dropped to 12.4% in Q4 FY25 from 13.7% in Q4 FY24. 

Company Details

Revenue

• Q4 FY25: Rs 3,143.8 Crore
• YoY Growth: 7.1%

EBITDA Margin

• Q4 FY25: 12.4%
• Q4 FY24: 13.7%

Net Profit

• Q4 FY25: Rs 306 Crore
• Q4 FY24: Rs 294 Crore
• Growth: 4.2%

India Business Performance

• Revenue: Rs 2,135.5 Crore
• Growth: 8.1% YoY

International Sales

• Revenue: Rs 974.7 Crore
• Growth: 7.2% YoY

Alongside its financial results, the company announced a final dividend of Rs 8 per equity share for FY25., pending shareholders' approval. The record date is set for August 8.

Summary of the Article

The Alkem Labs share price declined after the release of its Q4 FY25 results. While revenue and profit showed positive growth, the drop in EBITDA margin to 12.4% raised investor concerns.

Despite strong domestic and international sales growth, the market reacted negatively to the pressure on margins. The announcement of a final dividend and stable India business adds some positivity, but the share price movement reflects cautious investor sentiment.