Marksans Pharma (MARKSANS) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 was seasonally soft due to demand contraction in the US and UK, with the UK facing high single-digit price erosion in some products.

• Revenue grew 5% year-over-year to INR 626.2 crore, driven by new launches in the US and easing raw material costs.

• Profitability was impacted by non-recurring factors: integration expenses, a one-time ECL provision, and forex volatility.

• Early signs of demand recovery are visible in Q2, with expectations of momentum strengthening through the year.

• Board approved unaudited consolidated and standalone financial results for the quarter ended June 30, 2025, with statutory auditors issuing an unmodified review opinion.

Financial highlights

• Operating revenue for Q1 FY26 was INR 626.2 crore, up 5% year-on-year; consolidated revenue from operations rose to ₹6,199.89 million.

• US and North America revenue grew 30.6% year-on-year to INR 327.6 crore, driven by new launches.

• UK and EU revenue was INR 203.8 crore; Australia and New Zealand INR 57 crore; Rest of World INR 31.6 crore.

• Gross profit rose 8.9% year-on-year to INR 358.2 crore; gross margin expanded by 296 bps to 57.8%.

• Profit after tax was INR 58.2 crore, down 34.7% year-on-year; EPS at INR 1.3.

Outlook and guidance

• Early Q2 shows demand recovery; momentum expected to strengthen through the year.

• Gross margins expected to remain stable, with further improvement anticipated from Q3 as product mix and input costs optimize.

• Revenue for FY26 expected to be close to, but possibly shy of, INR 3,000 crore due to tariff uncertainties.

• Targeting revenue of ₹3,000 crore in two years, with plans to double US revenue and become a top 5 OTC company in North America.

• Margin profile expected to improve quarter-on-quarter, but year-on-year margins likely to remain flattish.