Marksans Pharma (MARKSANS) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 revenue rose 35.6% YoY to ₹840.8 crore; record EBITDA of ₹213 crore and PAT of ₹159.4 crore, with quarter-end cash of ₹1,058 crore.

• UK & Europe revenue surged 74.7% YoY to ₹356 crore, including ₹44 crore from QliniQ; acquisitions and broad-based growth strengthened the European platform.

• Management maintained FY27 guidance and plans to pursue geographic expansion, product launches and selective acquisitions.

Financial highlights

• Operating revenue was ₹840.8 crore versus ₹620 crore in Q1 FY26, up 35.6% YoY; underlying growth excluding QliniQ was 28.5%.

• Gross profit increased 38.9% YoY to ₹497.3 crore; gross margin expanded 138 bps to 59.1%.

• EBITDA more than doubled to ₹213 crore; margin rose 919 bps YoY to 25.3%.

• PAT rose 173.9% YoY to ₹159.4 crore; net profit margin was 18.4%.

• Operating cash flow was ₹185 crore; after ₹33 crore net CapEx, free cash flow was ₹152 crore.

Outlook and guidance

• FY27 revenue growth guidance of 15%-20% and EBITDA margin guidance of 20%-21% maintained; management said 21%-22% margin is achievable.

• Revenue expected to improve in Q2 versus Q1, with Q3 potentially strongest; management expects to meet its margin plan.

• Management reiterated a ₹4,000 crore revenue target within two years and a goal to double revenue within five years.

• Europe is expected to generate EUR 180 million; QliniQ is expected to contribute ₹150-175 crore revenue in FY27.

• Longer-term ambitions include ₹1,000 crore revenue in Europe within five years and U.S. benchmarks of $300 million near term and $400 million longer term.