Alkem Laboratories (NSE:ALKEM) Operating Income: ₹26,232 Mil (TTM As of Mar. 2026)

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NSE:ALKEM Alkem Laboratories Ltd NSE:ALKEM
96 GF Score
Price ₹5,633.50
GF Value ₹6,125.68
Valuation Fairly Valued
! 1 Warning Sign
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What is Alkem Laboratories Operating Income?

Alkem Laboratories NSE:ALKEM +0.56% 96 Operating Income is ₹26,232 Mil as of Mar. 2026. GuruFocus rates NSE:ALKEM with a GF Score™ of 96/100 and a GF Value™ of ₹6,125.68 (Fairly Valued). The stock has 1 warning sign investors should review.

Alkem Laboratories's Operating Income for the three months ended in Mar. 2026 was ₹4,116 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹26,232 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Alkem Laboratories's Operating Income for the three months ended in Mar. 2026 was ₹4,116 Mil. Alkem Laboratories's Revenue for the three months ended in Mar. 2026 was ₹36,033 Mil. Therefore, Alkem Laboratories's Operating Margin % for the quarter that ended in Mar. 2026 was 11.42%.

Alkem Laboratories's 5-Year average Growth Rate for Operating Margin % was -0.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Alkem Laboratories's annualized ROC % for the quarter that ended in Mar. 2026 was 7.22%. Alkem Laboratories's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 27.90%.


Alkem Laboratories  (NSE:ALKEM) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Alkem Laboratories's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=16465.2 * ( 1 - 40.48% )/( (0 + 135695.2)/ 1 )
=9800.08704/135695.2
=7.22 %

where

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=208729.7 - 23107.2 - ( 49927.3 - max(0, 47827 - 122105.2+49927.3))
=135695.2

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Alkem Laboratories's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=19069.2/( ( (0 + max(0, 0)) + (32285.4 + max(36063.9, 0)) )/ 1 )
=19069.2/( ( 0 + 68349.3 )/ 1 )
=19069.2/68349.3
=27.90 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0) - (0 + 0 + 0)
=0

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(29791.1 + 33332.2 + 8988.3) - (23107.2 + 0 + 12940.5)
=36063.9

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Alkem Laboratories's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=4116.3/36033.2
=11.42 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Alkem Laboratories Operating Income Related Terms


Alkem Laboratories Operating Income Historical Data

* Premium members only.

The historical data trend for Alkem Laboratories's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Alkem Laboratories Operating Income Chart

Alkem Laboratories Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17,691.70 13,341.70 19,848.60 21,549.90 26,231.50

Alkem Laboratories Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2,788.00 6,513.70 8,271.60 7,329.90 4,116.30
NSE:ALKEM
96GF Score
Alkem Laboratories Ltd NSE:ALKEM
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Alkem Laboratories Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹26,232 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of ₹26,232 Mil mean?
Alkem Laboratories (NSE:ALKEM) has a Operating Income of ₹26,232 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Alkem Laboratories and its competitors.
Is Alkem Laboratories' Operating Income too high?
Alkem Laboratories' current Operating Income is ₹26,232 Mil. Overall, Alkem Laboratories has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Alkem Laboratories' Operating Income compare to ZTS?
Alkem Laboratories' Operating Income of ₹26,232 Mil can be compared against companies in the Drug Manufacturers industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Drug Manufacturers company?
A good Operating Income depends on the Drug Manufacturers industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Alkem Laboratories and its competitors. Alkem Laboratories's current Operating Income is ₹26,232 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alkem Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Alkem Laboratories (NSE:ALKEM) is currently considered Fairly Valued. The stock's GF Value™ is ₹6,125.68, compared to a current price of ₹5,633.50 — trading 8% below its estimated fair value. The current Operating Income is ₹26,232 Mil. Alkem Laboratories' overall GF Score™ is 96/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Alkem Laboratories (NSE:ALKEM), the current Operating Income is ₹26,232 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Alkem Laboratories (NSE:ALKEM) Overvalued in 2026?

Based on GuruFocus' analysis, Alkem Laboratories stock appears to be undervalued. The current stock price of ₹5,633.50 is trading 8% below its estimated GF Value™ of ₹6,125.68. GuruFocus considers Alkem Laboratories to be Fairly Valued.

Key valuation signals for NSE:ALKEM:

  • Operating Income: ₹26,232 Mil
  • GF Value™: ₹6,125.68 vs. price of ₹5,633.50 (8% below fair value)
  • GF Score™: 96/100 with 1 warning sign

No single metric tells the full story. See the NSE:ALKEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Alkem Laboratories Business Description

Other Exchanges 539523:India
Address Senapati Bapat Marg, Alkem House, Devashish Building, Lower Parel, Mumbai, MH, IND, 400 013
Alkem Laboratories Ltd is an Indian pharmaceutical company engaged in the development, manufacture, and sale of pharmaceutical and nutraceutical products. The company produces branded generics, generic drugs, active pharmaceutical ingredients (APIs) and nutraceuticals in acute and chronic therapeutic areas, such as anti-infective, pain and analgesics, vitamins/minerals/nutrients, cardiac and Diabetology, Gynecology, neuro/central nervous system, dermatology, anti-diabetes, anti-osteoporosis, cardiovascular, and muscle relaxants, which are marketed in Indian and International markets. It operates through the pharmaceutical business segment.
96GF Score

Get the complete analysis for NSE:ALKEM

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹5,633.50
Price
₹6,125.68
GF Value