Glenmark Pharmaceuticals (GLENMARK) Q1 2026 earnings summary

Executive summary

• Consolidated revenue from operations for Q1 FY2026 was INR 32,644 million, up 0.6% year-over-year, with India formulation business growing 3.7% despite discontinuation of some brands and underperformance in diabetes.

• US business grew 8.9% quarter-over-quarter, driven by injectable and partnered product launches, while India outperformed the market in secondary sales growth, especially in cardiac, dermatology, and respiratory segments.

• Key launches included TEVIMBRA and BRUKINSA in oncology, and LIRAFIT in diabetes, with LIRAFIT capturing over 50% market share in its molecule.

• IGI-AbbVie global licensing agreement for ISB 2001 highlights innovation capabilities, with positive phase I data presented at ASCO 2025.

• Unaudited financial results for the quarter ended 30 June 2025 were approved by the Board on 14 August 2025, reflecting both standalone and consolidated financials.

Financial highlights

• Gross margin for the quarter was 68.9%, up from 65.8% YoY, and is expected to be sustainable.

• EBITDA margin was 17.8%, with adjusted PAT margin at 9.6% and reported PAT margin at 1.4% due to exceptional US litigation loss.

• Net debt at quarter-end was INR 1,500 crore; gross debt was INR 3,200 crore, with increases due to inventory buildup and one-off payments.

• CapEx addition for the quarter was INR 180 crore, with a 65:35 split between tangible and intangible assets.

• R&D expenditure was around 7% of sales, with about half related to IGI.

Outlook and guidance

• India business expected to see convergence of secondary and reported growth from Q3 FY2026, with diabetes sales improving due to full supply of LIRAFIT.

• Double-digit growth anticipated in Europe and emerging markets for FY2026, with RYALTRIS® to be launched in 10-12 additional markets.

• U.S. business expects continued growth with new injectable and respiratory product launches, including generic Flovent and approval of generic respiratory ANDAs starting H2 FY26.

• Gross margin and EBITDA margin guidance reaffirmed at 68-69% and 23%+ respectively.

• Net working capital days targeted at 110-115.