Gland Pharma (GLAND) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 consolidated revenue was ₹13,841 million, down 10% year-over-year; EBITDA was ₹3,600 million with a 26% margin, up 1% year-over-year.

• PAT for Q3 FY25 increased 7% year-over-year to ₹2,047 million; PAT margin improved to 15%.

• 13 new molecules launched in Q3 FY25, strengthening the US portfolio; ROW markets contributed 21% of total revenues.

• Cenexi Q3 FY25 revenue was €41 million, down 16% year-over-year, with negative EBITDA margin due to operational disruptions and regulatory inspections.

• Strategic biologics CDMO collaborations with Dr. Reddy's and Shanghai Henlius Biotech are expected to drive incremental revenue from next fiscal year.

Financial highlights

• Gross margin improved to 67% in Q3 FY25 from 61% in Q3 FY24; base business gross margin at 63% versus 56%.

• Q3 FY25 EBITDA margin rose to 26% from 23% year-over-year; base business EBITDA margin improved to 39%.

• 9M FY25 revenue was ₹41,916 million, up 2% year-over-year; 9M FY25 PAT was ₹5,120 million, down 12% year-over-year.

• Q3 FY25 other income was ₹585 million, mainly from interest on fixed deposits.

• Capex for Q3 FY25 was ₹1,379 million; 9M FY25 capex at ₹3,053 million.

Outlook and guidance

• Cenexi targets positive EBITDA in the next fiscal year, driven by revenue above €200 million; break-even delayed to Q3 FY26 due to regulatory issues.

• Strategic biologics CDMO collaborations expected to generate incremental revenue starting next financial year.

• Commercialization of complex injectables co-developed with MAIA expected from FY27.

• Saudi tender revenue delayed to Q4 or early next year; GLP-1 CDMO revenues expected from FY26.