Q2 FY27 results analysis · November 03, 2026
Glaxosmithkline Pharmaceuticals Ltd Q2 FY27 Results Analysis: Revenue Jumps 20.78%, EBITDA Margin Meets 34% Guide
+30.4%PAT year on year, Rs. 335.88 Cr
Source: Quarterly results filing (BSE)
Quick summary
Glaxosmithkline Pharmaceuticals Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,183.57 Cr (+20.78% YoY) and PAT growth of +30.44% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 03, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,183.57 Cr (+20.78% YoY) |
| PAT (Q2) | Rs. 335.88 Cr (+30.44% YoY) |
| EBITDA margin | 33.97% (-29 bps YoY) |
| EPS (Q2) | Rs. 19.83 (+32.44% YoY) |
Quarter Snapshot
Q2 FY27 delivered 20.78% YoY revenue growth (12.95% base-adjusted) with EBITDA margin of 33.97% landing on management's guided ~34% anchor, and normalized PAT growth of 19.54% after stripping the Rs.42.09 cr IT-refund interest. Execution on the promised opex normalization was delivered in one quarter, though the H1 margin of 32.87% makes the full-year anchor a stretch requiring ~35.13% in H2. Watch items are the gross-margin proxy erosion on imported costs and a working-capital build that took CFO to 0.54x of PAT, funded from a zero-debt, cash-rich balance sheet.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue "ahead YoY, watch headline vs sustainable" | "Direction: ahead YoY, but watch headline-vs-sustainable growth" | +20.78% consolidated headline; +12.95% standalone adjusted for CMO+GST base | Played out |
| Margin "flat-to-compressing vs the ~34% anchor, opex the pivot" | Opex normalization was "the biggest single determinant" | EBITDA margin 33.97% (at anchor); opex ratio 14.10% vs 16.62% | Played out |
| ~Rs.42.09 cr tax-refund interest lands in Q2 other income | "a below-the-line boost that should be stripped" | Rs.42.09 cr confirmed in filing Note 2; normalized PAT Rs.305.10 cr vs Rs.335.88 cr reported | Played out |
| FX/imported-cost drag "persists rather than worsens sequentially" | Q1 evidence + rupee elevated | Gross-margin proxy 65.05% → 62.45% sequential (persisted; sequential worsening on this proxy) | Partially |
| Sector pattern: "earnings lagging revenue" | GLAXO's opex line judged against it | PAT +30.44% YoY vs revenue +20.78% — PAT outgrew revenue — favourably | Contradicted |
| Biddle Sawyer sub loss (~Rs.16.15 cr in Q1) as a drag | Keep in mind alongside one-offs | Q2 sub contribution +Rs.1.26 cr (sub PAT Rs.1.28 cr) — drag not persistent | Partially |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 EBITDA margin ~34% | Q1 FY27 earnings call, 3-Aug-2026 | Q2 FY27: 33.97% consolidated (33.93% standalone); H1 32.87% | On Track |
| Opex ratios normalize "in subsequent quarters" | Q1 FY27 earnings call, 3-Aug-2026 | Other expenses 14.10% of revenue vs 16.62% in Q1 FY27, 15.37% in Q2 FY26 | Met |
| Rs.8,000 cr revenue in 4–5 years (12–13% CAGR framing) | Q1 FY27 call, 3-Aug-2026; Q3 FY26 call, 9-Feb-2026 | Q2 FY27 +20.78% YoY reported; +12.95% standalone YoY adjusted for prior-year CMO+GST base | On Track |
| Front-loaded Q1 opex will normalize in subsequent quarters | Q1 FY27 call, 3-Aug-2026 | Other-expense ratio 16.62% → 14.10% in one quarter; EBITDA margin 31.49% → 33.97% | Confirmed |
| FY27 margin anchor ~34% (hold-and-sustain philosophy) | Q1 FY27 call / Q4 FY26 call, 13-May-2026 | Q2 at 33.97%; but H1 at 32.87% implies ~35.13% H2 margin if H2 revenue equals H1 | On track this quarter; full-year delivery is a stretch case |
| Q1 growth carried a 4–5% base effect (CMO disruptions) | Q1 FY27 call, 3-Aug-2026 | Adjusted Q2 YoY growth +12.95% vs +21.20% headline — the prior-year distortion was still in the base | Confirmed |
Key Numbers, Quarter by Quarter
| Metric | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|
| Innovation portfolio % of sales | — | 6.0 | 7.0 |
| Key promoted brands market share % | — | 28.0 | 27.8 |
| Digital HCP reach (lakh) | 36.0 | 36.0 | 36.0 |
Key Investment Insights
Key Positives
- Consolidated revenue grew 20.78% YoY to Rs.1,183.57 cr; +12.95% YoY after adjusting the prior-year base for Rs.72 cr of CMO disruption and GST-transition impact
- EBITDA margin recovered 248 bps sequentially to 33.97%, landing on management's guided ~34% FY27 anchor
- Other-expense ratio normalized from 16.62% in Q1 to 14.10% in Q2, below Q2 FY26's 15.37%, as guided on the Q1 call
- Reported PAT grew 30.44% YoY; normalized PAT (ex Rs.42.09 cr IT-refund interest) grew 19.54% YoY, tracking EBITDA growth of 19.76%
- Zero borrowings with Rs.650.75 cr cash, Rs.1,524.01 cr current investments and Rs.43.77 cr short-term bank balances
- FCF of Rs.284.74 cr in H1 despite working-capital build; capex only Rs.26.70 cr
- Biddle Sawyer subsidiary swung from a Q1 drag of Rs.16.15 cr to a positive Q2 contribution of Rs.1.26 cr
Risk Factors
- Gross-margin proxy fell 260 bps sequentially and 127 bps YoY to 62.45%, directionally consistent with rupee-hardened imported purchase costs
- H1 EBITDA margin of 32.87% implies a ~35.13% H2 margin requirement to reach the 34% FY27 anchor — above any quarter printed in the last six
- H1 CFO/PAT at 0.54x and CFO/EBITDA at 0.45x on inventory (+21.16%) and receivables (+24.28%) build vs Mar-2026
- Net worth declined Rs.386.37 cr in H1 due to the Rs.969.93 cr FY26 final dividend, exceeding H1 PAT of Rs.573.06 cr
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.