Q2 FY27 results analysis · November 06, 2026
Gland Pharma Ltd Q2 FY27 Results Analysis: PAT Jumps 58%, Margin Expands 510 bps
+58.3%PAT year on year, Rs. 290.80 Cr
Source: Quarterly results filing (BSE)
Quick summary
Gland Pharma Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,833.60 Cr (+23.30% YoY) and PAT growth of +58.30% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 06, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,833.60 Cr (+23.30% YoY) |
| PAT (Q2) | Rs. 290.80 Cr (+58.30% YoY) |
| EBITDA margin | 26.20% (+510 bps YoY) |
| EPS (Q2) | Rs. 17.62 (+58.00% YoY) |
Quarter Snapshot
Revenue grew 23.3% YoY led by the USA (+42.5%) and CDMO (+31%), with PAT up 58.3% and EBITDA margin up ~510 bps YoY to 26.2%. H1 delivery is running well ahead of the 12-13% CC revenue guide, but the 30% near-term margin target remains unmet and the tax-rate step-up drove PAT down 8.3% QoQ. Watch the margin bridge via Cenexi, the Dundigal 483 observations, and the Fosun overhang.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| US demand | "The US engine entered Q2 with accelerating momentum" | USA +42.5% YoY, +20.3% QoQ, 64.3% of revenue | Played out |
| Europe/Cenexi | "management guided Q2 to 'a better next quarter YoY'" | Europe +30.3% YoY; Cenexi EUR KPIs not disclosed — proxy played out; direct KPI not observable | Partially |
| Margin bridge | "Consolidated EBITDA margin (Q1: 27.4%...) sits below the 30% near-term guide" | 26.2% reported / 27.4% Adj. | Played out |
| Raw-material headwind | "raw-material cost headwind expected in Q2–Q3 as the inventory buffer depletes" | Gross margin −185 bps QoQ; +72 bps YoY — sequential signature only | Partially |
| FX | "reported growth should lean more on real volume" | +23.3% YoY with other income −18.0% YoY; CC split not derivable from filing — direction consistent | Played out |
| Tariffs | "Section 232 Pharmaceutical Tariffs do not apply to generic pharmaceutical products" (pre-call note, web-sourced, dated Sept 23, 2026) | No tariff-related cost line visible in the P&L — no visible impact | Played out |
| Dundigal | "4 Form 483 observations... CAPA pending" | Disclosed in press release: 4 procedural observations, Oct 2026 — post-quarter, disclosed | Played out |
| Fosun overhang | "keeps the strategic-overhang question live for the call" | Not addressed in the filing — remains open for the call | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 revenue growth 12–13% CC, ex-GLP-1 | Q4 FY26 earnings call (May 15, 2026); reiterated Q1 FY27 call | H1 FY27 +21.4% YoY reported (CC split not derivable from the filing) | On Track |
| Consolidated EBITDA margin 30% near-term; 35% in 3–4 years | Q1 FY27 earnings call (Aug 10, 2026) | 26.2% reported / 27.4% Adj. in Q2 FY27 (Q1: 27.4%/28.3%) — below guide, not converging QoQ | Stretch |
| CDMO ~30% of consolidated revenue near-term | Q1 FY27 earnings call | 44.9% of Q2 FY27 revenue (+31% YoY) — exceeded | Met |
| Cenexi ~EUR 200m FY27 revenue, high-single-digit margins | Q4 FY26 call; reconfirmed Q1 FY27 call | Cenexi EUR figures not disclosed in the Q2 filing | Too Early |
| Cenexi EBITDA double-digit % by year-end | Q4 FY26 earnings call | Not disclosed; two unreviewed subs' Q2 combined loss Rs.33.3 cr | Too Early |
| Base business new CDMO contracts USD 40–50m by FY27 | Q4 FY26 earnings call | Not quantified; press release cites expanded tech-transfer dossiers + new microspheres/respiratory manufacturing contracts | Too Early |
| GLP-1 exhibit batches/filings Q3/latter-half FY27 (excluded from guidance) | Q4 FY26 earnings call | No GLP-1-specific update in the filing | Too Early |
| Capex Rs.2,000 cr over 5 years | Q3 FY26 earnings call (Jan 28, 2026) | H1 FY27 capex Rs.256.2 cr | On Track |
| "Revenue increasing 23% year-on-year" | Q2 FY27 press release (Chairman's comment) | Computed +23.32% YoY | Confirmed |
| "Profit after tax growing 58% year-on-year" | Q2 FY27 press release | Computed +58.29% YoY | Confirmed |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|
| R&D spend (Rs. cr / % of revenue) | 81.7 / 5.5% | 77.2 / 4.3% | 107.7 / 5.9% |
| ANDAs filed / approved (qtr) | 6 / 5 | n/d / n/d | 11 / 10 |
| Cumulative ANDAs filed / approved | 378 / 329 | 389 / 342 | 399 / 350 |
| US molecule launches (qtr) | 7 | 4 | 4 |
| RTU bags: filed / approved | 20 / 14 | 21 / 18 (Q4 FY26) | 24 / 18 |
Key Investment Insights
Key Positives
- Revenue grew 23.3% YoY to Rs.1,833.6 cr; H1 FY27 +21.4% YoY
- PAT grew 58.3% YoY to Rs.290.8 cr; EPS Rs.17.62 vs Rs.11.15
- EBITDA margin expanded ~510 bps YoY to 26.2% reported (27.4% adj.)
- USA revenue +42.5% YoY (+20.3% QoQ) to Rs.1,179.5 cr, now 64.3% of revenue; US CDMO +81% YoY
- CDMO grew 31% YoY to Rs.822.7 cr (44.9% of revenue), exceeding the ~30% near-term mix target
- 11 ANDAs filed and 10 approved in the quarter; 4 US molecule launches (Dalbavancin, Multi-Vitamin, Sugammadex among recent)
- Net cash Rs.3,221.6 cr; H1 FCF Rs.345.7 cr; CFO/PAT 0.99x
- VSEZ USFDA audit closed with zero observations
Risk Factors
- Reported EBITDA margin of 26.2% is below management's 30% near-term guide and did not converge QoQ (Q1: 27.4%)
- Effective tax rate rose ~540 bps QoQ to 32.5%, driving PAT down 8.3% QoQ
- Gross margin compressed 185 bps QoQ (65.3% to 63.5%) as the raw-material inventory buffer depletes
- India revenue fell 41.8% YoY and Rest of World fell 21.1% YoY on delayed Middle East tenders; Canada/Australia/NZ −18.0%
- Two unreviewed subsidiaries reported a combined Q2 loss after tax of Rs.33.3 cr
- Promoter Fosun sold 6.00% (to 45.76%), leaving an overhang not addressed in the filing
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