Glenmark Pharma shares fall 4% after Q2 profit plunges 57%, revenue drops 30%

Glenmark Pharmaceuticals Ltd shares fell as much as 4% in Friday's trade after the company reported a sharp decline in consolidated revenue and profit for the September quarter of FY27. The pharmaceutical company reported a 56.8% year-on-year (YoY) fall in profit after tax (PAT), while revenue from operations declined nearly 30%, with its reported performance affected by a steep drop in North America revenue.

Glenmark reported consolidated revenue from operations of Rs 4,247 crore for the second quarter, compared with Rs 6,047 crore in the corresponding quarter last year. Consolidated PAT declined to Rs 264 crore from Rs 610 crore a year ago. Earnings before interest, tax, depreciation and amortisation (Ebitda) fell 63.4% to Rs 864 crore, while the Ebitda margin contracted by around 1,900 basis points to 20.3%.

Glenmark shares touched a low of Rs 2,375, compared with the previous close of Rs 2,485.50, marking a fall of around 4.44%.

Glenmark Q2 results: What dragged performance?

The sharp decline in reported revenue was largely reflected in the North American business, where revenue fell 72.9% YoY to Rs 1,209 crore. However, Glenmark clarified that, after excluding the deferred out-licensing income recognition for ISB 2001, its North America core business recorded growth of around 31% during the quarter.

The company's India formulations business recorded like-for-like growth of around 14% YoY, while revenue from Europe increased 6.2% and emerging markets grew 33.2%. The company said its India formulations business continued to outperform the Indian pharmaceutical market, with growth across key therapy areas such as dermatology, respiratory, cardiac and oncology.

On a like-for-like basis, Glenmark's consolidated revenue grew approximately 20% YoY during the quarter. The company also reported adjusted PAT of Rs 485 crore, with an adjusted PAT margin of 11.4%, compared with reported PAT of Rs 264 crore.

Glenmark FY27 outlook

Commenting on the performance, Chairman and Managing Director Glenn Saldanha said, "The second quarter demonstrated the strength and resilience of the company's base business." He said Glenmark remained on track to deliver its FY27 guidance, supported by continued growth in India, a recovery in North America through multiple product launches and robust performance across emerging markets.

Despite the sharp decline in reported quarterly earnings, Glenmark maintained its full-year consolidated revenue guidance of Rs 17,000-18,000 crore and Ebitda margin guidance of 21-22%, according to its management commentary. The company's ability to sustain growth in its core businesses and deliver the expected recovery in North America will remain key monitorables in the coming quarters.