Alkem Laboratories Ltd. , a prominent Indian pharmaceutical company, has announced significant business restructuring and reported robust financial results for the first quarter, while also facing regulatory challenges.

Business Transfer Agreement

Alkem Laboratories has entered into a business transfer agreement with its wholly-owned subsidiary, Alkem Wellness Limited. According to the company's disclosure under SEBI LODR Regulations, the transfer of the trade generics business will be effective from October 1, 2025. This move, initially announced in December 2024, involves transferring the business as a going concern on a slump sale basis.

Strong Q1 FY2026 Performance

For the April-June quarter of FY2026, Alkem Laboratories demonstrated impressive financial results:

The company's performance was driven by a 2.9% overall volume growth, showcasing its resilience in the pharmaceutical market.

GST Order and Company's Response

Alkem Laboratories faces a regulatory challenge as it received a GST order confirming a demand of ₹35.11 crore, along with a penalty of ₹3.50 crore. The order covers the period from July 2017-18 to March 2022 and primarily alleges denial of input tax credit due to double claims. However, the company has expressed disagreement with the order and intends to contest it, demonstrating its commitment to resolving regulatory issues.

Market Response

Despite the strong quarterly results, Alkem Laboratories' shares ended lower by 1.72% at ₹5,413.50, possibly reflecting investor concerns over the GST order.

The company's strategic move to transfer its trade generics business to a wholly-owned subsidiary, coupled with its strong financial performance, indicates Alkem's efforts to optimize its business structure and maintain growth momentum. However, the ongoing GST dispute adds a layer of complexity to the company's regulatory landscape, which investors will likely monitor closely in the coming months.

Alkem Laboratories Limited , a prominent player in the Indian pharmaceutical industry, has completed the transfer of its Trade Generics Business to its wholly-owned subsidiary, Alkem Wellness Limited, with a total consideration of ₹532.5 crores.

Business Transfer Completion

On December 30, 2025, the company announced the completion of the business transfer with the final payment of ₹32.5 crores from Alkem Wellness to the parent company. This brings the aggregate sale consideration to ₹532.5 crores under the Business Transfer Agreement.

Timeline of Events

The strategic restructuring process began with the initial intimation to stock exchanges on December 10, 2024. The Business Transfer Agreement was formally executed on September 26, 2025, setting October 1, 2025, as the effective date for the business transfer on a slump sale basis.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Manish Narang signed the regulatory filing, ensuring transparency for investors and stakeholders.

Strategic Impact

This restructuring move represents a significant step in streamlining Alkem Laboratories' operations. By transferring the Trade Generics Business to Alkem Wellness as a going concern, the company has created a more focused operational structure that could enhance resource allocation and operational efficiency across its business segments.

The completion of this ₹532.5 crore transaction marks a milestone in the company's strategic reorganization efforts, positioning both entities for optimized performance in their respective operational areas.