Glenmark Pharmaceuticals Ltd Q4 FY26 Earnings Call: IGI-AbbVie Deal Secures $700M Upfront, Guides Rs. 17,000-18,000 Cr Revenue

Glenmark Pharmaceuticals Ltd held its Q4 FY26 earnings call on May 29, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Consolidated revenue grows 15.8% in Q4; full-year revenue up 27.5%

• Q4 FY26 consolidated revenue of Rs.37,706 Mn— grew 15.8% YoY; FY26 full-year revenue reached Rs.169,825 Mn, up 27.5% YoY.
• Q4 FY26 US revenue of Rs.9,248 Mn— increased 29.4% YoY; core business grew 7.8% excluding ISV 2001 licensing income.
• Q4 FY26 Europe revenue of Rs.8,907 Mn— rose 21.4% YoY, supported by Winlevi and base business performance.
• Q4 FY26 emerging markets revenue of Rs.8,979 Mn— up 13.7% YoY, with Ryaltris approvals in China and Thailand.
• Exceptional items of Rs.373 Cr in Q4 FY26— predominantly from a US litigation settlement (~Rs.320–323 Cr) and associated legal costs; balance of Rs.50 Cr unspecified.
• Other income of Rs.189 Cr in Q4 FY26— primarily from forex translation impact due to sharp currency movements.
• Q4 FY26 core operating margin was affected by lower absorption of fixed costs and higher distribution expenses linked to geopolitical and supply chain headwinds.

IGI-AbbVie landmark deal; Ryaltris at $100M run-rate with 30–40% expected growth

• IGI and AbbVie signed a milestone licensing deal for ISB 2001— $700 Mn upfront payment, total potential value of $1.925 Bn plus tiered double-digit royalties; Glenmark to lead emerging-market commercialization post-approval.
• Ryaltris FY26 revenue of $100M— management guided 30–40% growth for FY27 and expects continued 30%+ growth over the next few years.
• Ryaltris commercialized in 55 markets— launches planned in Brazil (FY27), China (FY27 post-reimbursement), and 8–10 additional markets in the coming quarters.
• Hikma partnership for Ryaltris in the US terminated— Glenmark began self-commercialization from April FY 2026-2027; secondary sales growth is 50%.
• Kinahyo (Envafolimab) filed in 24 markets— first commercial launches expected in FY27-28; a global multi-center Phase III trial has been initiated.
• Management cited the innovative pipeline as a long-term value driver—"innovative pipeline expected to contribute significantly over the next 5-7 years".
• Leadership change at IGI— Lida Paco (previously Chief Medical Officer) became CEO, replacing Cyril Contu approximately 6–8 months before the call.

US recovery bolstered by Fluticasone exclusivity; Europe delivers 21.4% Q4 growth

• Fluticasone MDI 44 mcg approved with 180-day exclusivity— received in early March butno significant Q4 FY26 sales due to supply chain disruptions delaying commercialization.
• Monroe factory received FDA “VAI” classification— voluntary action indicated status allows commercial production restart, supporting injectables and institutional business growth.
• US growth in FY27 driven by two sole first-to-file (FTF) products— Gabapentin and Axetinib launching in Q3/Q4 FY27, plus multiple respiratory launches (Fluticasone RX, Fluticasone 110, and one additional MDI already filed).
• AD deal milestone income of $17.5M per quarter— $35M recognized over H2 FY26; incremental ~$34M expected in FY27.
• Litigation settlements largely complete— only one or two outstanding cases remain over the next few years.
• Europe Q4 FY26 revenue of Rs.8,907 Mn (+21.4% YoY)— Winlevi launched in the UK; planned rollout in other authorized European markets in FY26-27.

India grows 1.5x IPM; diabetes franchise expected to recover from Q1 FY27

• India business grew 1.5x the IPM in FY26— ranked the 2nd fastest-growing among the top 15 companies in India.
• Dermatology ranked #2 in India— Telma cardiovascular franchise performing well; new oncology launches (Tevembra, Brukenza) gaining traction.
• India diabetes franchise lagged the market— Remogliflozin struggled after DAPA went generic; Teneligliptin struggled after Sitagliptin went generic;management expects growth to resume from Q1 FY 2026-2027 with the Glipe launch.
• Emerging markets Q4 FY26 revenue of Rs.8,979 Mn (+13.7% YoY)— Ryaltris approved in China and Thailand; Brazil launch planned in FY26-27.
• India business expected strong growth from FY 2026-2027— driven by dermatology, cardiovascular, and oncology portfolios.

Gross debt-free with Rs.1,200 Cr cash; working capital at 107 days

• Gross debt-free status achieved at end of FY26— with a healthy cash position of Rs.1,200 Cr.
• Net working capital at 107 days— better than guidance of 115–120 days; receivables increase attributed to stopping pre-collections, delayed MIA region collections due to the war situation, and currency translation.
• FY26 intangible capex of ~Rs.800+ Cr— one-off upfront payments for oncology/derma partnerships and US injectable BD; FY27 total capex expected to normalize to ~Rs.900 Cr.
• Capital allocation for FY 2026-2027 prioritises core business expansion— with $70 Mn set aside for IGI future spend.
• R&D spend in Q4 FY26 at Rs.225 Cr— FY27 R&D guided at 7–8% of sales, focused on innovation; Ryaltris R&D in Q4 FY26 was ~Rs.150 Cr.
• Committed payouts include legal payment deferments and $70 Mn/year RGI income deferment— management to provide detailed cash payout schedule separately.
• Analyst Taran Agarwal requested standardized quarterly disclosures— for net debt, gross debt, Capex, and R&D management acknowledged and committed to reviewing the suggestion.

Revenue guided at Rs.17,000–18,000 Cr; EBITDA margin of 21–22%

• FY27 revenue guidance raised to Rs.17,000–18,000 Cr— from earlier Rs.17,000–17,500 Cr, driven by strong growth across markets except Europe (expected high single-digit).
• FY27 EBITDA margin guided at 21–22%— considering growth investments and the evolving geopolitical and currency environment.
• FY27 growth drivers include US recovery, India and EM oncology launches— Amlodipine (FY27), followed by Trastuzumab, Reseltican, Envofulimab; plus Glippic and GFB launches.
• Target of 2–3 respiratory product launches in FY 2026-2027— supporting US and global respiratory franchise expansion.
• R&D guided at 7–8% of sales in FY 2026-2027— focused on innovation pipeline and respiratory programs.
• Working capital efficiency to be maintained— mitigating geopolitical, raw material, and currency volatility; management expects continued cash release despite business growth.
• Management declined to confirm an analyst's inference of 40–45% US revenue growth for FY27— though the US is expected to be a major growth driver.