Jefferies has maintained its Underperform rating on Alkem Labs and cut its target price to ₹4,460 after the company’s Q4 earnings missed estimates on lower margins.
After 18 months of margin improvement, the company is now pivoting toward accelerating growth. It has guided for high single-digit overall revenue growth in FY26 and double-digit growth in FY27, led by India business. However, EBITDA margin guidance for FY26 remains flat at 19.5%, as new initiatives will require higher R&D spending.
Jefferies has reduced its FY26–27 EPS estimates by 3–6%, citing margin pressures.
Disclaimer: The views and target prices mentioned in this article are as stated by Jefferies. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions.
