Gland Pharma (GLAND) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue reached ₹15,056 million, up 7% year-over-year, with EBITDA rising 39% to ₹3,678 million and margin expanding from 19% to 24%-25% due to strong base business and Cenexi's turnaround.

• Net profit attributable to owners grew 50% year-over-year to ₹2,155 million, with PAT margin improving to 14% from 10%.

• Cenexi achieved break-even EBITDA after several loss-making quarters, with revenue at €48 million and gross margin improving to 80%.

• U.S. market contributed 49% of revenue, driven by nine new product launches; other regulated markets grew 34% year-over-year, now comprising 25%-27% of total revenue.

• Unaudited consolidated and standalone financial results for the quarter ended June 30, 2025, were reviewed and approved by the Board and Audit Committee on August 5, 2025.

Financial highlights

• Gross margin improved to 65% from 60% year-over-year; base business gross margin (ex-Cenexi) rose to 59% from 53%.

• Consolidated EBITDA margin improved to 24%-25% from 19% year-over-year; base business EBITDA margin (ex-Cenexi) at 35% vs. 29% last year.

• Cash and equivalents stood at ₹30,139 million as of June 30, 2025; Cenexi debt at ₹3,145 million.

• Cash flow from operations was ₹2,620 million; CapEx for the quarter was ₹786 million, mainly for Cenexi projects.

• Basic and diluted consolidated EPS for the quarter were ₹13.08, up from ₹8.73 year-over-year.

Outlook and guidance

• Expecting mid-teen growth for the U.S. business for the year, with key launches like dalbavancin and CMS dry powder expected to drive growth.

• GLP-1 cartridge fill-finish capacity to reach 140 million by March, with 20 million pens expected to be commercialized in FY27, mainly for RoW markets.

• Cenexi and Synapse EBITDA margins projected to ramp up in Q3 and Q4 after a lower Q2 due to summer shutdown; full-year combined EBITDA margin expected around 24%-25%.

• Commercialization of 15 co-development products expected to begin in FY28.

• New pre-filled syringe line at Cenexi to be operational in early 2026, boosting capacity.