Glenmark Pharmaceuticals has released its Q1 FY25-26 financial results, and the numbers reflect a mixed performance. While profitability remained stable and the India business delivered healthy growth, challenges in Europe and Emerging Markets pulled overall momentum down. Here’s a detailed breakdown for investors.
📊 Key Financial Highlights – Q1 FY25-26
- Revenue: ₹32,644 crore, a marginal increase of 0.6% year-on-year.
- Gross Margin: Improved to 68.9% from 65.8% last year, reflecting better product mix and cost controls.
- EBITDA: ₹5,805 crore, down slightly by 1.3% YoY. EBITDA margin stood at 17.8%.
- Adjusted PAT: ₹3,129 crore vs ₹3,402 crore last year, broadly stable.
- Reported PAT: ₹470 crore (sharply lower due to a one-time US litigation settlement loss of ₹3,232 crore).
👉 On an adjusted basis, profits remain steady, but reported numbers look weak because of exceptional items.
🌍 Business Performance by Region
India Market
- Revenue at ₹12,399 crore, up 3.7% YoY and a strong 31.5% QoQ recovery.
- Growth led by cardiac, dermatology, and respiratory therapies.
- Oncology portfolio expanded with the launch of TEVIMBRA® (Tislelizumab) and BRUKINSA® (Zanubrutinib).
- Consumer Care business grew ~20%, with Candid Powder retaining over 60% market share.
North America
- Revenue at ₹7,780 crore, flat YoY but up 8.9% QoQ.
- Supported by new generic launches like Adderall® (Mixed Amphetamines) and Epinephrine injections.
- Respiratory ANDAs expected to contribute meaningfully from H2 FY26.
Europe
- Revenue at ₹6,678 crore, down 4% YoY and 9% QoQ.
- Weak quarter, though branded products such as RYALTRIS® and WINLEVI® continue to expand across new markets.
Emerging Markets (EM)
- Revenue at ₹5,721 crore, flat YoY but down 27.6% QoQ due to seasonal weakness in LATAM.
- Russia, MEA, and APAC delivered healthy double-digit secondary sales growth.
🚀 Growth Drivers & Business Updates
- RYALTRIS® now commercialized in over 45 countries, with more launches planned.
- WINLEVI® launched in the UK; further European approvals expected by end of FY26.
- AbbVie partnership for oncology drug ISB 2001 validates Glenmark’s innovation pipeline; Phase 1 results showed a promising 79% overall response rate.
- Consumer brands like La Shield and Scalpe recorded strong double-digit growth.
✅ Positives for Investors
✔️ Strong rebound in India business and consumer care growth.
✔️ Improved gross margin showing better operating efficiency.
✔️ FII stake increased, reflecting foreign investor confidence.
✔️ Oncology pipeline validated through AbbVie deal, boosting long-term outlook.
⚠️ Concerns to Watch
❌ Overall revenue growth remains muted at just 0.6% YoY.
❌ Europe and Emerging Markets reported weak performance.
❌ Diabetes therapy underperformed in India.
❌ Litigation-related losses hit reported profitability.
📈 Shareholding Pattern (Q1 FY25-26)
- Promoters: ~46.6% (stable).
- FII Holding: ~28.7% (slight increase – positive signal).
- DII Holding: ~17.9% (flat to marginally lower).
- Public & Others: ~6.8%.
🏆 Final View for Investors
Glenmark Pharma’s Q1 results highlight a resilient core business despite global headwinds. Adjusted profits are stable, margins are healthy, and the company continues to strengthen its presence in India with oncology and consumer launches. The AbbVie partnership is a big positive for long-term growth.
However, muted topline growth, litigation-related costs, and regional weaknesses remain concerns. For long-term investors, Glenmark still holds potential, especially with its robust specialty and innovation pipeline. Short-term volatility may persist until stronger growth momentum is visible in Europe and Emerging Markets.
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