Marksans Pharma (MARKSANS) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 operating revenue grew 10.6% YoY to INR 754 crore, an all-time high for the quarter, driven by stable execution across geographies, robust U.S. order book, and improved seasonal demand despite price erosion in Rx segments.

• EBITDA margin rose to 21.3% in Q3 FY26, reflecting operating leverage and lower raw material costs, while net profit increased 8.2% YoY.

• U.K. business showed sequential improvement and stabilization after prior pricing pressures, aided by new product launches and favorable currency movement.

• New subsidiaries established in Ireland and Canada to strengthen global presence and support long-term growth.

• Standalone and consolidated unaudited financial results for the quarter and nine months ended 31 December 2025 were reviewed and approved by the Board on 5 February 2026, with auditors expressing an unmodified conclusion.

Financial highlights

• Q3 FY26 consolidated revenue: ₹7,544.27 million (up from ₹6,818.46 million YoY); 9M revenue: ₹20,948.24 million (up from ₹19,143.87 million YoY).

• Q3 FY26 gross profit: INR 438.2 crore (+14.3% YoY), gross margin 58.1% (vs. 56.2% last year); EBITDA: INR 160.7 crore (+23.2% YoY), EBITDA margin 21.3%; PAT: INR 113.7 crore (+8.2% YoY); EPS: INR 2.5.

• 9M FY26 revenue: INR 2,094.8 crore (+9.54% YoY); gross profit: INR 1,208.2 crore (+10.3% YoY), gross margin 57.7%; EBITDA: INR 405.4 crore; PAT: INR 271 crore; EPS: INR 6.

• Cash generated from operations in 9MFY26: ₹263.2 crore; capex: ₹97 crore; cash balance as of Dec 2025: ₹824.2 crore; company remains debt-free.

• Basic and diluted consolidated EPS for the quarter was ₹2.50, up from ₹2.31 year-over-year.

Outlook and guidance

• U.S. order book remains strong at $220M+, supporting optimism for near-term growth; management targets 20% growth in U.S. for the upcoming year.

• Revenue milestone of INR 4,000 crore targeted within 2-3 years, with INR 5,000 crore as the next milestone.

• Europe expected to become a significant contributor in 3-5 years, with Canada to start contributing next year.

• Management expects growth momentum to continue for the rest of FY26, aiming for ₹3,000 crore revenue in the near term.

• Employee costs expected to stabilize as capacity utilization improves; R&D spend to remain at 2.5-3% of sales.