Gland Pharma (GLAND) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue grew 22% YoY to INR 1,695.4 crore, with strong gains across businesses, including Cenexi, and 37% adjusted PAT growth, driven by US and Europe markets and new product launches.

• Adjusted EBITDA rose 25% YoY to INR 449 crore, with margin expansion and improved profitability.

• Cenexi delivered EUR 50 million in Q3 revenue (+39% YoY), positive EBITDA, and margin improvement from cost initiatives and capacity ramp-ups.

• Growth was driven by new product launches, CDMO contract ramp-ups, and increased capacity utilization.

• Strategic focus remains on innovation-led CDMO, specialty injectables, and significant CapEx for expansion.

Financial highlights

• Q3 FY26 consolidated revenue: INR 1,695.4 crore (₹16,954 million), up 22% YoY; 9M FY26: INR 4,687.9 crore (₹46,879 million), up 12% YoY.

• Adjusted EBITDA for Q3: INR 449 crore (₹4,490 million, 26% margin), up 25% YoY; 9M: INR 1,158.2 crore (₹11,582 million, 25% margin), up 26% YoY.

• Adjusted PAT for Q3: INR 279.7 crore (₹2,797 million, 16% margin), up 37% YoY; 9M: INR 678.9 crore (₹6,789 million, 14% margin), up 33% YoY.

• Gross margin for Q3: 66%; 9M: 65%, up from 62% last year.

• R&D expenses in Q3 FY26 were ₹650 million (5.4% of revenue), up from ₹437 million (4.3%) in Q3 FY25.

Outlook and guidance

• Confident in sustaining momentum with upcoming launches, CDMO contract ramp-ups, and new capacities.

• Five-year CapEx plan of INR 2,000 crore for brownfield expansions, BFS, and ophthalmic lines; FY26 CapEx for base business at INR 250 crore, Cenexi at EUR 25 million.

• FY27 base business growth expected at 12%-13%, with potential upside from faster regulatory approvals.

• Five-year organic CAGR target of 15%.

• Commercialization of co-development pipeline anticipated to begin in FY28.