Glenmark Pharmaceuticals (GLENMARK) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue was INR 34,338 million, up 7.1% year-over-year, driven by strong India and Europe growth, while North America and ROW declined.

• EBITDA for Q2 FY25 was INR 6,019 million (margin 17.5%), and PAT was INR 3,545 million (margin 10.3%), marking a turnaround from a loss in Q2 FY24.

• India business grew 13.9% year-over-year, outpacing the Indian pharma market and ranking 13th in IPM.

• Key launches included biosimilar Lirafit, Jabryus (with Pfizer), and new respiratory and dermatology products; RYALTRIS® commercialized in 41 markets.

• Notable progress in novel biologics, with ISB 2001 showing 75% ORR in Phase 1 and data to be presented at ASH 2024.

Financial highlights

• Q2 FY25 revenue grew 7.1% year-over-year to INR 34,338 million; sequential growth was 5.8%.

• EBITDA margin for H1 FY25 was around 18%; Q2 FY25 margin was 17.5%, with guidance for 19% for FY25.

• PAT for Q2 FY25 was INR 3,545 million, reversing a loss of INR 1,803 million in Q2 FY24.

• R&D expenditure in Q2 FY25 was INR 2,279 million (6.6% of revenue); capex at INR 790 million.

• Net cash as of September 2024 was INR 259 crores; inventory at INR 2,840 crores, receivables at INR 2,860 crores, payables at INR 2,360 crores.

Outlook and guidance

• FY25 revenue guidance is INR 1,35,000–1,40,000 million, with EBITDA margin expected around 19% and R&D investment targeted at 7–7.25% of sales.

• India business expected to continue outperforming the market; U.S. business to focus on injectables and complex generics with new launches in Q3.

• ROW region anticipated to finish FY25 with high single-digit year-over-year growth on a constant currency basis.

• Capex planned at INR 7,000 million; aiming for double-digit PAT margin.