Glenmark Pharmaceuticals (GLENMARK) Q1 24/25 earnings summary

Executive summary

• Consolidated revenue from operations for Q1 FY25 was INR 32,442 million, up 6.9% year-over-year, with strong growth in India and Europe, and improved operational performance driving margin expansion.

• India business outperformed the market, growing 11.9% YOY, with strong performance in cardiac, dermatology, and respiratory segments.

• Europe showed the highest YOY growth at 21.4%, driven by branded respiratory products and double-digit growth in key markets.

• RYALTRIS commercialized in 40 markets, achieving high market shares in multiple regions and driving global growth.

• Strategic collaborations and new product launches, including oncology and respiratory, are supporting growth.

Financial highlights

• India formulation revenue: INR 11,962 million (36.9% of consolidated revenue), up 11.9% YOY.

• North America revenue: INR 7,808 million, up 3.3% sequentially; revenue declined 4.6% YOY due to lack of new launches.

• Europe revenue: INR 6,957 million, up 21.4% YOY, driven by branded respiratory portfolio.

• ROW revenue: INR 5,708 million, up 3.2% YOY, with strong performance in Russia and LATAM.

• EBITDA grew 34.5% YOY to INR 5,882 million, with an adjusted margin of 18.8%.

• PAT stood at INR 3,402 million, with a PAT margin of 10.5%.

• Gross margin improved to 65.8% from 60.9% YOY.

• R&D expenses were INR 2,410 million, representing 7.4% of sales.

• Flagship brand Candid Powder grew 22% in Q1, reaching a 58.8% market share.

Outlook and guidance

• FY25 objectives: consolidated revenue of INR 135,000–140,000 million, R&D investment at 7–7.25% of sales, EBITDA margin of ~19%, CAPEX of INR 7,000 million, and double-digit PAT margin.

• US business recovery expected in H2 FY25, driven by respiratory product approvals and focus on injectables and complex generics.

• R&D spend for innovation (IGI) to remain stable in FY25, with potential reduction in FY26 if partnerships are secured.

• Working capital days expected to stabilize around 70-75 days.