Marksans Pharma (MARKSANS) Q1 26/27 earnings summary

Executive summary

• Q1 FY 2027 delivered record revenue of ₹841 crore (₹8,407.96 million), up 35.6% YoY, with highest ever quarterly EBITDA of ₹213 crore and PAT of ₹159 crore; cash balance crossed ₹1,000 crore for the first time.

• Strategic investments in products, manufacturing, and international presence, especially in Europe, are translating into growth, profitability, and cash generation.

• UK & Europe revenue surged 74.7% YoY to ₹356 crore, with QliniQ contributing ₹44 crore; Europe is now a key growth engine.

• The quarter saw the acquisition of QliniQ B.V. in the Netherlands and a post-quarter agreement to acquire ABCnow GmbH in Germany, expanding European market presence.

Financial highlights

• Operating revenue for Q1 FY 2027 was ₹840.8 crore, up 35.6% YoY; North America contributed ₹377 crore (+15.1% YoY), UK & Europe ₹356 crore (+74.7% YoY), Australia/NZ ₹88 crore (+33.7% YoY).

• Gross profit rose to ₹497.3 crore (+38.9% YoY), with gross margin improving to 59.1% (+138 bps YoY).

• EBITDA reached ₹213 crore (+112.8% YoY), with margin expanding to 25.3% (+919 bps YoY).

• PAT was ₹159.4 crore (+173.9% YoY), PAT margin at 18.4% (+910 bps YoY).

• Free cash flow for the quarter was ₹152 crore after net CapEx of ₹33 crore; working capital cycle improved to 132 days from 159 days YoY.

Outlook and guidance

• FY 2027 guidance maintained at 15%-20% revenue growth and 20%-21% EBITDA margin, citing geopolitical volatility.

• Management expects Q2 and Q3 revenues to be stronger than Q1, with Q3 likely the strongest.

• Targeting ₹4,000 crore revenue within two years and doubling revenue within five years.

• Recent acquisitions in the Netherlands and Germany are expected to strengthen the European footprint and distribution capabilities.