Alkem Labs transfers trade generics business to its subsidiary Alkem Wellness

Drugmaker Alkem Laboratories Ltd said on Friday (September 26) it has entered into a business transfer agreement with its wholly-owned subsidiary, Alkem Wellness Ltd, to transfer its trade generics business as a going concern on a slump sale basis.

The transfer, originally intimated in December 2024, will be effective from October 1, 2025.

Earlier this week, Alkem Labs received an order from the Commissioner (Appeals) – II, CGST & Central Excise, Mumbai, under the GST Act, 2017, confirming a demand

of ₹35.11 crore along with a penalty of ₹3.5 crore for the period July 2017-18 to March 2022.

The order primarily alleged denial of input tax credit (ITC) due to double claims in Form GSTR-3B not reflected in GSTR-2A. The company stated it disagrees with the order and will contest it, noting that there is no material impact on its financial or operational activities, as sufficient ITC is available.

Q1 results

Alkem Labs reported strong performance for April-June 2025, with revenue rising 11% year-on-year to ₹3,371 crore, surpassing CNBC-TV18’s estimate of ₹3,155 crore. Net profit surged 21.45% to ₹668 crore, beating expectations of ₹481 crore. EBITDA also jumped 21.35% to ₹739 crore, compared with the estimated ₹578 crore, driven by a 2.9% overall volume growth.

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Shares of Alkem Laboratories Ltd ended lower on Friday (September 26) by 1.72% at ₹5,413.50.