This article first appeared on GuruFocus .
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Consolidated Revenue:INR14,869 million in Q2 FY26, up 6% year-on-year.
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Consolidated EBITDA:INR3,139 million in Q2 FY26, with a margin of 21%.
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H1 FY26 Revenue:INR29,925 million, reflecting a 7% increase over H1 FY25.
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H1 FY26 EBITDA:INR6,817 million, with a margin of 23%.
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US Market Revenue:INR8,005 million in Q2 FY26, up 8% year-on-year.
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Gross Margin:63% in Q2 FY26, up from 59% in the previous year.
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Net Profit:INR1,837 million in Q2 FY26, with a PAT margin of 12%.
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R&D Investment:INR614 million in Q2 FY26, representing 5.8% of sales.
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Cenexi Revenue:EUR40 million in Q2 FY26, an 8% increase year-on-year.
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Cash and Equivalents:INR999 million as of September 30, 2025.
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External Debt at Cenexi:INR2,544 million.
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Cash Flows from Operations:INR3,312 million in Q2 FY26.
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CapEx:INR1,969 million in H1 FY26, mainly for new projects and capacity building.
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Warning! GuruFocus has detected 8 Warning Signs with NSE:GLAND.
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Release Date: November 03, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Gland Pharma Ltd ( NSE:GLAND ) reported a 6% year-on-year increase in consolidated revenue for Q2 FY26, driven by strong performance in the US and European markets.
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The company launched seven new products in the US market during the quarter, contributing to an 8% year-on-year revenue growth in the region.
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Cenexi, a subsidiary of Gland Pharma, showed a 10% year-over-year growth in revenue in Euro terms, indicating successful turnaround efforts.
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Gland Pharma's gross margins improved to 63% from 59% in the previous year, supported by a favorable business and product mix.
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The company is expanding its biologic CDMO capacity and increasing cartridge fill-finished capacity, positioning itself as a high-end CDMO partner for global pharma companies.
Negative Points
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Cenexi incurred losses in H1 FY26 due to a planned shutdown, although EBITDA losses decreased compared to the previous year.
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The rest of the world market remained almost flat year-on-year, with a significant decline in tech transfer and CMO product revenue by 53%.
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Higher expenses were reported due to increased R&D, employee costs, and continued high costs at Cenexi.
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The company's milestone revenue was lower than expected, impacting overall revenue growth.
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Despite improvements, Cenexi's gross margin has been trending lower, attributed to product mix and production during the shutdown.
Q & A Highlights
Q: As global pharma outsourcing grows and competition intensifies, what is Gland Pharma doing to build a strong edge beyond expanding capacity? A: Srinivas Sadu, Executive Chairman of the Board, explained that Gland Pharma is focusing on building capabilities around complex manufacturing and technology. They are expanding into areas with high entry barriers, such as complex injectables and biologics, to create a competitive edge.
Q: How is Gland Pharma planning to protect margins amidst shifting input costs and regulatory dynamics? A: Srinivas Sadu highlighted that the company is improving margins through automation, operational efficiency, and portfolio rationalization. They focus on high-margin products and strategic investments in specialty products to sustain long-term profitability.
Q: When is the revenue pickup from Candler and Delta Extension expected in the US business, and how will it impact margins? A: Srinivas Sadu stated that revenue from Dalba Benzene is expected this quarter, with initial large quantity pickups due to pipeline filling. The US business has shown strong growth, with new contracts contributing significantly. Milestone revenues are expected to normalize in the coming quarters.
Q: What is the outlook for Gland Pharma's regulated market business, and can it achieve double-digit growth over the next few years? A: Srinivas Sadu confirmed that the company expects growth in the regulated market, driven by CDMO contracts and new product launches. They anticipate double-digit growth, supported by strategic initiatives and market expansion.
Q: How is Gland Pharma progressing with GLP-1 capacity and biologics, and what is the customer traction like? A: Srinivas Sadu mentioned that the company has launched GLP-1 products and is expanding capacity. They have signed contracts with partners and are in discussions for more. The biologics segment is also gaining traction, with plans to increase capacity and collaborations underway.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
