Gland Pharma Posts 50% YoY Jump in Q1 Profit; EBITDA Margin Expands to 24%

Hyderabad, August 5, 2025 – Gland Pharma Ltd (NSE: GLAND, BSE: 543245) reported a strong start to FY26 with a 50% year-on-year (YoY) rise in consolidated net profit to ₹2,155 million for the quarter ended June 30, 2025. The performance was driven by solid growth across both base and acquired businesses, a better product mix, and cost efficiencies.

Consolidated Financial Highlights

• Revenue from operations stood at ₹15,056 million, up 7% year-on-year and 6% quarter-on-quarter.
• Gross profit rose to ₹9,845 million, marking an 18% increase over last year. Gross margin improved to 65%, compared to 60% in Q1FY25.
• EBITDA came in at ₹3,678 million, up 39% year-on-year and 6% sequentially. EBITDA margin remained steady at 24%.
• Profit before tax grew 43% YoY to ₹3,127 million.
• Net profit surged 50% to ₹2,155 million.
• PAT margin expanded to 14%. This is up from 10% in the same quarter last year.
• Adjusted EBITDA for Q1FY26 stood at ₹3,737 million, with a margin of 25%, up from 19% in Q1FY25.

Segment-Wise Performance

Base Business (India Operations)

Gland’s standalone operations (Base Business) delivered moderate revenue growth of 3% YoY, with operating leverage playing a key role in profitability:

• Revenue from standalone operations stood at ₹10,409 million, up 3% year-on-year from ₹10,134 million in Q1FY25.
• EBITDA rose 22% to ₹3,592 million, compared to ₹2,941 million last year.
• EBITDA margin improved to 35% in Q1FY26, from 29% in Q1FY25.
• Profit After Tax (PAT) increased 20% year-on-year to ₹2,692 million from ₹2,248 million.
• PAT margin rose to 26%, versus 22% in the same quarter last year.
• Research & Development (R&D) expenses declined 6% YoY to ₹460 million from ₹489 million.

Despite flat revenue, gross margin expanded to 59% from 53% YoY.

Cenexi (Acquired Business in Europe)

Cenexi reported a turnaround with breakeven EBITDA

• Revenue rose 20% year-on-year to €48 million (₹4,648 million), compared to €43 million (₹3,883 million) in Q1FY25.
• Gross margin improved by 22% YoY to €38 million (₹3,701 million), up from €34 million (₹3,026 million).
• Reported a turnaround at the EBITDA level, achieving breakeven with €0.9 million (₹86 million) in Q1FY26, versus a loss of €3 million (₹286 million) last year.
• EBITDA margin turned positive at 2%, compared to -7% in Q1FY25.

Operational efficiencies and tech-transfer products at Hérouville and Fontenay supported recovery.

Geographic Revenue Contribution

• In Q1FY26, the United States remained the largest contributor, accounting for 49% of total revenue. However, revenue from the region declined by 2% year-on-year to ₹7,443 million.
• Revenue from Europe grew 29% YoY, reaching ₹3,302 million, and contributed 22% to the company’s overall revenue.
• The Rest of the World (RoW) segment brought in ₹2,978 million, marking a 5% YoY increase and contributing 20% to total revenue.
• Revenue from Other Core Markets surged by 65% year-on-year to ₹739 million, contributing 5% to the overall revenue.
• The Indian market contributed 4% to the total revenue. Its revenue grew 13% YoY to ₹594 million.

Growth in Europe and the Rest of the World offset the marginal decline in US sales. GLP-1 launches in the UK and Australia, boosting Other Markets revenue by 65% YoY.

Strategic & Regulatory Highlights

• R&D Investment: ₹460 million in Q1FY26, accounting for 4.4% of revenue.
• ANDA Milestones: Total filings in the US reached 372, with 325 approvals.
• GLP-1 Growth Strategy: Expanded Liraglutide into the UK and Australia; production capacity is being ramped up from 40 million to 140 million units.
• Regulatory Clearance: Received GMP Compliance Certificate from Denmark’s drug regulator for aseptic products.
• Capex: ₹786 million was invested in Q1FY26, focused on expansion and automation.

Management Commentary

“We are pleased with the robust start to FY26, particularly the turnaround at Cenexi and the margin expansion in our base business. Our investments in GLP-1s, complex injectables, and regulatory compliance continue to yield results,” said the management in the Q1FY26 investor presentation.

About Gland Pharma

Gland Pharma Limited is a publicly listed pharmaceutical company specializing in injectables, complex generics, and sterile products across regulated markets. Listed on both NSE and BSE, Gland operates manufacturing facilities across India and Europe. The company continues to expand its global footprint with a diversified product portfolio and strategic partnerships.

REF:https://nsearchives.nseindia.com/corporate/GLAND_05082025163711_InvestorPresentationQ1FY26_Final.pdf

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