The drug maker’s bottom line was dragged down by a ₹3,200 crore litigation charge. Management expects double-digit growth from next quarter.
Shares of Glenmark Pharmaceuticals fell as much as 4.7% on Monday, after the drug maker’s Q1 profit tanked.
Glenmark Pharmaceuticals reported an 86.2% year-on-year decline in net profit at ₹46.8 crore, down from ₹340.2 crore in Q1FY25. However, revenue increased 0.6% to ₹3,264 crore, compared to ₹3,244 crore in the same quarter last year.
EBITDA dipped 1.4% to ₹580 crore, while EBITDA margin was lower at 17.7% versus 18.1% last year.
What Worked And Did Not For Glenmark?
In India, sales from Glenmark Pharmaceuticals’ formulation business in the first quarter of FY26 stood at ₹1,239.9 crore, up 3.7%.
In North America, the business registered revenue of ₹778 crore for this quarter, compared with ₹714.6 crore in the fourth quarter of FY25. The growth was driven by share gains in injectable product launches and partnered products.
Revenue from emerging markets came in at ₹572.1 crore in the first quarter of FY26, compared with ₹570.8 crore in the year-ago period, while in Europe, revenue fell 4% to ₹667.8 crore, compared with ₹695.7 crore a year ago.
Analyst Take
Glenmark Pharma reported stable growth in Q1FY26, though its bottom line was weighed down by exceptional litigation charges, noted SEBI-registered analyst Saurabh Sahu. Reported PAT dropped sharply to ₹470 crore due to a ₹3,200 crore one-time litigation expense.
In India, revenue rose 3.7% due to a strong performance in cardiac, dermatology, and respiratory therapies. Oncology launches like TEVIMBRA and BRUKINSA added to the momentum, Sahu said.
North America revenue was flat YoY but grew 8.9% QoQ, aided by three new launches, including generic Adderall. European sales declined 4% though respiratory products remained stable. Emerging markets revenue was ₹5,721 crore, impacted by a sharp sequential decline, though RYALTRIS continued to gain traction, the analyst added.
Strategically, Glenmark strengthened its pipeline through a licensing deal with AbbVie for ISB 2001, validating its innovation capabilities in immuno-oncology, he said. The Consumer Care division grew nearly 20%, with Candid Powder retaining leadership in antifungal care.
Looking ahead, management expects double-digit growth resumption from Q2, driven by oncology and respiratory launches, strong India demand, and recovery in emerging markets.
Q1 Earnings Dampen Retail Buzz
Retail sentiment on Stocktwits turned ‘bearish’ from ‘neutral a week ago.
Year-to-date (YTD), the stock has gained over 23%.
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