Alkem Laboratories is stepping up efforts to expand its non-US business as part of its long-term growth strategy. The move comes alongside the announcement of a new subsidiary in Saudi Arabia to strengthen its international footprint.
Focus Shifts Beyond the US Market
“We are strategically accelerating our focus on the non-US business segment by strengthening our presence in high-potential non-US markets and capturing new opportunities that align with our long-term growth ambitions,” said Vikas Gupta, CEO, Alkem Laboratories.
For the first quarter ended June 30, the company reported total revenue of ₹3,371 crore, an 11.2% increase year-on-year. Net profit (after Minority Interest) rose 21.8% to ₹664 crore. The US market accounted for around 21% of the company’s Q1 revenue. The announcement comes amid expectations of US tariffs on the pharmaceutical sector. However, company insiders stressed that the non-US growth plans were not triggered by the ongoing trade uncertainties.
Strategic Expansion into Saudi Arabia
In a separate development, Alkem revealed plans to set up a subsidiary in Saudi Arabia, holding 51% equity in partnership with a local Saudi firm. The new entity, to be incorporated within a year of signing the Shareholders’ Agreement, will operate in the pharma and nutraceuticals segments. Alkem described the investment as a strategic step to expand its market reach in the Kingdom of Saudi Arabia.
Strong Domestic Performance
Alkem’s India sales for the quarter stood at ₹2,265 crore, up 12% from last year and contributing 68% of total Q1 FY26 revenue. US sales rose 8.8% to ₹698 crore, while total international sales reached ₹1,053 crore, up 8.9% year-on-year. Non-US international sales came in at ₹355 crore, reflecting a 9% increase and accounting for 10.7% of the company’s total sales.
Long-Term Outlook
As reported by thehindubusinessline.com, Alkem is ramping up its non-US operations. It is also entering high-growth markets like Saudi Arabia to build a more diversified revenue mix. The strategy aims to reduce dependence on the US market and tap into expanding demand in emerging markets.
