GlaxoSmithKline Pharmaceuticals (500660) Q4 25/26 earnings summary

Executive summary

• Achieved 2% revenue growth for FY26, with double-digit EBITDA (11%) and PAT (10%) growth year-over-year, despite supply chain disruptions and a CMO fire impacting the general medicines portfolio.

• Audited standalone and consolidated financial results for the year and quarter ended 31 March 2026 were approved, with an unmodified audit opinion issued by Deloitte Haskins & Sells LLP.

• Promoted brands outperformed the market, and the innovative portfolio (oncology, respiratory, vaccines) now contributes 6% of sales, up from 2% last year.

• Vaccines, especially SHINGRIX and pediatric vaccines, delivered double-digit growth, while specialty and oncology portfolios showed strong momentum.

• Final dividend declared at Rs.57 per share, up from Rs.54 in FY25, subject to AGM approval.

Financial highlights

• FY26 consolidated revenue was Rs. 382,167 lakhs (+2% YoY); EBITDA margin improved to 34.3%, up 290 bps; PAT before exceptionals reached Rs. 101,000 lakhs (+10% YoY).

• EPS excluding exceptionals at Rs. 59.60 (+10% YoY); ROCE at 61%.

• Year-end cash position at Rs. 110,205 lakhs (consolidated) and Rs. 2,745 crores (standalone); return on capital employed at 61%.

• SG&A ratio reduced by 1 percentage point due to cost efficiencies.

• Q4 sales up 2%, EBITDA up 5%, PAT up 6% year-over-year.

Outlook and guidance

• Double-digit top-line growth ambition remains, with new launches in oncology and vaccines expected to drive growth.

• Supply chain issues resolved; Q1 FY27 expected to reflect normalized sales and inventory.

• Focus on expanding innovative portfolio to 10% of top line in coming quarters.

• Continued investment in launches, digital transformation, and R&D acceleration, with margin maintenance prioritized.

• Ongoing optimization of field force productivity and cost management through AI-led initiatives.