Q2 FY27 results analysis · November 05, 2026
Glenmark Pharmaceuticals Q2 FY27 Results Analysis: EBITDA Margin Expands 147 bps, Cash Flow Slips Negative
−17.3%PAT year on year, Rs. 482.88 Cr
Source: Quarterly results filing (NSE)
Quick summary
Glenmark Pharmaceuticals Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 4,247.33 Cr (-29.80% YoY) and PAT growth of -17.30% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 4,247.33 Cr (-29.80% YoY) |
| PAT (Q2) | Rs. 482.88 Cr (-17.30% YoY) |
| EBITDA margin | 20.41% (+147 bps YoY) |
| EPS (Q2) | Rs. 15.41 |
Quarter Snapshot
Core business shows sequential momentum with net sales up 5.7% QoQ and H1 EBITDA margin up 147 bps YoY to 20.23%, though this trails management's 21-22% FY27 guidance. The Goa FDA VAI clearance, credit rating upgrade to IND AA+, and largely resolved US litigation de-risk the outlook, but negative operating cash flow of -Rs.2,033 Mn from an Rs.18,001 Mn working capital build and negative operating leverage of ~300 bps are the key watch items for H2.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Revenue: Rs.17,000-18,000 Cr | FY26 Q4 call | Rs.8,266 Cr (H1) — 47-49% of target achieved | On Track |
| EBITDA Margin: 21-22% | FY26 Q4 call | 20.23% (H1) — 240 bps gap | Slightly Behind |
| Gross Debt: Zero | FY26 Q4 call | Rs.867 Cr (Current borrowings) — Subsidiary-level debt emerged | Behind |
| Working Capital Days: ~115 days | FY26 Q4 call | Higher (WC consuming cash) | Behind |
| "We have delivered a strong quarterly performance and are on track to achieve our guidance" | Q1 FY27 call | H1 EBITDA margin 20.23% vs 21-22% target; margin gap of 77-177 bps — Revenue on track, margin slightly behind | Partially |
| "Gross debt zero by FY26 and maintained through FY27" | FY26 Q4 call | Current borrowings Rs.867 Cr at consolidated level; zero at standalone — Standalone maintained, subsidiary debt emerged | Partially |
| "Geopolitical cost pressure to persist for at least two more quarters" | Q1 FY27 call | H1 FY27 expense growth exceeded revenue growth; negative operating leverage — Cost pressure visible in margin compression | Confirmed |
| "Litigation largely provided for; cash outflow Rs.800-1,000 Cr over 3 years" | Q1 FY27 call | Humana settlement Rs.284 Cr booked; Rs.713 Cr dividend paid from cash reserves — Settlement provisions adequate | Confirmed |
| "Best phase of Glenmark in 25 years" | Q2 FY26 call | Balance sheet transformed (zero standalone debt, net cash); margins structurally improved — Balance sheet strength validated | Confirmed |
Key Numbers, Quarter by Quarter
| Metric | Q1 FY27 | Q4 FY26 | Q3 FY26 | Q2 FY26 | Trend |
|---|---|---|---|---|---|
| India Revenue (Rs. Mn) | 14,321 | 10,201 | 12,986 | 1,650 | Recovering post-GST transition |
| North America Revenue (Rs. Mn) | 10,974 | 9,248 | 9,706 | 44,656 | Core growth 19.8% YoY (ex-ISB 2001) |
| Europe Revenue (Rs. Mn) | 7,472 | 8,907 | 7,963 | 7,460 | Stable with respiratory launches |
| EM Revenue (Rs. Mn) | 7,304 | 8,979 | 8,119 | 6,585 | Growing from LATAM/MEA expansion |
| US ANDAs Pending | 53 (26 Para IV) | 53 (25 Para IV) | 53 (25 Para IV) | 53 (22 Para IV) | Stable pipeline |
| US Launches (Quarter) | 9 | 4 | 4 | 2 | Strong launch momentum Q1 FY27 |
Key Investment Insights
Key Positives
- H1 FY27 EBITDA margin improved 147 bps YoY to 20.23% from 18.76%
- Net sales grew 5.7% QoQ to Rs.41,570.91 Mn despite absence of prior-year ISB 2001 out-licensing income of ~Rs.45,000 Mn
- Standalone H1 FY27 swung to PAT of Rs.11,705 Mn from a loss of Rs.4,090 Mn in H1 FY26
- Goa facility received EIR with VAI status on Sep 23, 2026, closing the FDA compliance issue
- Zero gross debt maintained at standalone level; net cash position of Rs.4,233.89 Mn at consolidated level
- Ind-Ra upgraded credit rating to IND AA+/Stable on Sep 11, 2026
- Equity grew 6.7% in H1 FY27 to Rs.1,11,842.14 Mn
- US litigation exposure largely resolved with Humana settled at USD 15 Million and 1-2 remaining cases largely provided for
Risk Factors
- H1 FY27 EBITDA margin of 20.23% trails the 21-22% FY27 guidance by 77-177 bps, requiring H2 margin of 21.8-22.8%
- Operating cash flow turned negative at -Rs.2,033.18 Mn in H1 FY27 with working capital outflow of Rs.18,001 Mn
- Negative operating leverage of ~300 bps as expenses grew 8.7% QoQ vs revenue growth of 5.7% QoQ
- Consolidated revenue declined 29.8% YoY and PAT declined 17.3% YoY (base effect from ISB 2001 income of ~Rs.45,000 Mn)
- Current borrowings of Rs.8,665.40 Mn emerged at consolidated subsidiary level vs zero at March 2026
- Q2 FY27 exceptional loss of Rs.2,838.75 Mn from Humana litigation settlement and related legal costs
Ask about this
Ask Cofacto a question about this result. Answers cite filings and company data.
Companies on this page
Related
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.