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, driven by strong execution, robust US order book, and improved seasonal demand, with margin expansion aided by lower raw material costs and favorable currency movements.

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

• New subsidiaries established in Ireland and Canada, and ongoing exploration of M&A opportunities in Europe to strengthen global presence.

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

Financial highlights

• Q3 FY26 consolidated revenue: ₹7,544.27 million (up from ₹6,818.46 million YoY); 9M FY26: ₹20,948.24 million (up from ₹19,143.87 million YoY); Q3 FY26 operating revenue: INR 754.4 crore (+10.6% YoY); 9M FY26: INR 2,094.8 crore (+9.54% YoY).

• Q3 FY26 gross profit: INR 438.2 crore (+14.3% YoY); gross margin: 58.1% (up 184 bps YoY); EBITDA: INR 160.7 crore (+23.2% YoY); EBITDA margin: 21.3% (up 217 bps YoY); net profit: INR 113.7 crore (+8.2% YoY).

• 9M FY26 EBITDA: INR 405.4 crore; net profit: INR 271.0 crore (down 7.1% YoY) due to weaker Q1 and higher costs.

• Cash from operations (9M): INR 263.2 crore; Capex: INR 97 crore; R&D spend: INR 62 crore (3% of revenue); cash balance: INR 824.2 crore; debt-free.

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

Outlook and guidance

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

• Strategic goal to reach INR 4,000 crore revenue in 2-3 years, with INR 5,000 crore as the next milestone.

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

• Europe expected to become a significant contributor in 3-5 years, with M&A activity anticipated.

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