GlaxoSmithKline Pharmaceuticals (500660) Q2 25/26 earnings summary

Executive summary

• Celebrated 101 years in India, focusing on general medicines, vaccines, and a renewed push into oncology with the launch of Jemperli and Zejula in Q2.

• Specialty and vaccine segments delivered strong double-digit growth, while general medicines faced headwinds due to supply disruptions and a muted acute market.

• Portfolio transformation, digital engagement, and leadership experience are driving competitiveness.

• Unaudited consolidated Q2 and H1 FY2025-26 results were approved, with auditors confirming compliance and no material misstatements.

• Board approved a ₹1.74 crore investment in a solar power project at Nashik to meet green energy needs and regulatory requirements.

Financial highlights

• Q2 sales/revenue were INR 974 crore (₹97,994 lakhs), a decline of 2.6% year-over-year, mainly due to supply disruptions and GST changes.

• EBITDA margin improved to 34.4%, up 250 basis points year-over-year, driven by cost savings and a better product mix.

• EPS for Q2 was ₹15.06, a 3% increase year-over-year.

• Net profit for Q2 was ₹25,749 lakhs, up from ₹20,501 lakhs in the previous quarter and ₹25,250 lakhs in Q2 last year.

• Paediatric vaccines portfolio grew 13% year-over-year, led by key brands.

Outlook and guidance

• Double-digit growth ambition remains intact, with supply chain issues resolved and a focus on innovative launches to drive recovery in H2.

• No formal FY26 guidance provided, but priorities are restoring growth, maintaining sustainable EBITDA margins, and expanding gross margins.

• Investment in renewable energy is expected to optimize energy costs and ensure compliance with captive power regulations.