Gland Pharma (GLAND) Q4 24/25 earnings summary

Executive summary

• FY25 was marked by strategic realignment, manufacturing and R&D investments, and expansion into new markets and complex injectables, with a focus on long-term growth amid global uncertainties such as US reciprocal tariffs.

• Consolidated revenue for FY25 was ₹56,165 million, down 1% year-over-year; Q4 revenue was ₹14,249 million, down 7% YoY but up 3% sequentially.

• Gross profit margin improved to 63% for FY25, with Q4 gross margin at 66%; EBITDA margin stable at 24% in Q4.

• R&D pipeline robust, targeting major therapies and leveraging co-development and CDMO collaborations, including with Dr. Reddy's and Shanghai Henlius Biotech; 31 new product launches in FY25.

• Final dividend of ₹18 per share recommended for FY25, subject to shareholder approval.

Financial highlights

• FY25 consolidated EBITDA was ₹12,689 million, down 5% YoY; PAT was ₹6,985 million, down 10% YoY; PAT margin at 12%.

• Base business (Gland) FY25 revenue was ₹41,248 million, EBITDA ₹14,451 million (35% margin), PAT ₹10,868 million (26% margin).

• Cash and bank balances at year-end were ₹25,562 million; net cash after Cenexi debt: ₹22,870 million.

• R&D expenses for FY25 were ₹1,922 million (4.7% of revenue).

• Cash conversion cycle improved to 98 days from 152 days in FY24.

Outlook and guidance

• Consolidated revenue growth guidance for FY26: mid-teens percentage, with subsequent years expected in the low 20s.

• Cenexi expected to achieve positive EBITDA by Q3 FY26 and double-digit EBITDA margin by FY27.

• Revenue generation from biologics CDMO collaboration with DRL expected from FY26; commercial production of new vaccine and expanded ampoule capacity expected in FY26.