Gland Pharma Limited — Q1 FY26 earnings call

Call held 5 Aug 2025

Management summary

Gland Pharma delivered a strong start to FY26, characterized by a significant turnaround in its Cenexi subsidiary and robust margin expansion in the base business. The company is aggressively pivoting towards complex injectables and the GLP-1 market, with substantial capacity expansions underway. Despite some volatility in Enoxaparin supplies and seasonal shutdowns expected in Q2 for Cenexi, management remains confident in achieving mid-teen growth for the US market and maintaining consolidated margins in the 24-25% range.

Highlights

  • Consolidated Revenue reached ₹15,056 million, representing a 7% YoY growth.

  • Consolidated EBITDA grew 39% YoY to ₹3,678 million, with margins expanding to 24% from 19%.

  • Net Profit (PAT) surged 50% YoY to ₹2,155 million, driven by improved base business margins.

  • Cenexi achieved EBITDA breakeven (€0.9 million) for the first time since acquisition on revenue of €48 million.

  • US Revenue stood at ₹7,443 million (49% of total), supported by 9 new product launches including Epinephrine and Acetaminophen bags.

  • Cartridge capacity expansion is on track to reach 140 million units by March 2026 to support GLP-1 demand.

  • R&D expenditure was ₹460 million, representing 4.4% of base business revenue.

Key financials

  1. Revenue 15,056 Mn +7%YoY
  2. EBITDA 3,678 Mn +39%YoY
  3. EBITDA Margin 24%
  4. PAT 2,155 Mn +50%YoY
  5. R&D Spend 460 Mn -5.9%YoY

What they filed

Q1 FY27: revenue up 23.9%, net profit up 35.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,063 1,011 1,030 1,039 1,074 +1%1,178 +17%1,262 +23%1,287 +24%
EBITDA364 391 394 359 375 +3%422 +8%508 +29%474 +32%
Net profit282 295 290 269 302 +7%308 +4%420 +45%364 +35%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • USA
    7,443 Mn Revenue49% Revenue Share
  • Other Regulated Markets
    34% Revenue Growth27% Revenue Share
  • Rest of the World (RoW)
    2,978 Mn Revenue5% Revenue Growth
  • Cenexi
    48 million eur Revenue0.9 million eur EBITDA80% Gross Margin

Guidance & targets

Margin

  • Consolidated EBITDA Margin Margin · FY26 · High confidence 24-25%
    I think combined Gland and Cenexi would be around 24%-25% level. This is the current quarter's EBITDA consolidated.

    — Srinivas Sadu, Executive Chairman

Capacity

  • Pen and Cartridge Capacity Capacity · by March 2026 · High confidence 140 million units

    From 40 million units today

    The 100 million capacity FAT is in September and installation in November. By March/April, it will be ready for fill and finish commercialization.

    — Srinivas Sadu, Executive Chairman

Volume

  • GLP-1 Supply Quantity Volume · FY27 · Medium confidence 20 million units
    Let's start with around 20 million in the first year and then the next few years depending on which markets you get approval.

    — Srinivas Sadu, Executive Chairman

Revenue

  • US Market Revenue Growth Revenue · FY26 · Medium confidence mid-teen
    So with all those factors and whatever we are doing, we are doing, we still will be guided to growth in the U.S. So we still stick to the guidance of growth in the U.S. market [mid-teen].

    — Shyamakant Giri, CEO

Market context

  • Cenexi EBITDA Profitability · FY26 · Medium confidence positive
    But for the year, I think, moving forward from October, I think, it will be EBITDA positive, and we'll ramp it up slowly to get to the low teens or high single digits EBITDA.

    — Srinivas Sadu, Executive Chairman

Risks & concerns

  • US Import Tariffs

    medium

    Potential for tariffs on pharma imports under a new US administration; management plans to pass costs to partners if implemented.

    Analyst acknowledged

  • Regulatory Inspections

    medium

    Ongoing monitoring of CAPA plans following ANSM inspections at Cenexi sites; a new inspection occurred in July.

    Management acknowledged

  • Cenexi Seasonal Volatility

    low

    Q2 profitability for Cenexi will be lower due to the one-month summer shutdown in Europe.

    Management acknowledged

  • Enoxaparin Supply Timing

    low

    Lumpy order patterns for Enoxaparin (₹70cr vs ₹130-140cr normal) can distort quarterly US growth figures.

    Both acknowledged

Areas of evasion (2)

  • Specific pricing for GLP-1 fill-finish contracts (cited fixed conversion cost model but no numbers).
  • Specific revenue contribution from Liraglutide launches.

Q&A highlights

2 direct
GLP-1 Capacity and Demand Visibility Direct
The 100 million capacity FAT is in September and installation in November... Wegovy will come in FY '30. So most of the initial [products, we] will be filing from that line.

Confirms the aggressive timeline for GLP-1 infrastructure and clarifies that major volumes from blockbuster drugs like Wegovy are a long-term play (FY30).

Asked by Saion Mukherjee, Nomura Securities

Cenexi Sustainability and Margin Outlook Direct
For the year, I think, moving forward from October, I think, it will be EBITDA positive, and we'll ramp it up slowly to get to the low teens or high single digits EBITDA.

Sets clear expectations for the turnaround trajectory of the acquired asset, acknowledging a temporary dip in Q2 due to seasonal shutdowns.

Asked by Neha Manpuria, Bank of America

US Base Business Growth and Enoxaparin Volatility Partial
The enoxaparin supplies in this quarter were around INR70 crores, which is normally around INR 130 crores, 140 crores... So on an average basis for the year we'll hit that mid-teen.

Explains the underlying weakness in US base growth (3%) as a timing issue with a major product, rather than a structural decline.

Asked by Rahul Jeewani, IIFL Securities Ltd.

2 min read 5 chapters

Detailed narrative

Cenexi Reaches Critical EBITDA Breakeven

After several quarters of negative performance, Cenexi achieved EBITDA breakeven in Q1 FY26 with a profit of €0.9 million on revenue of €48 million. This turnaround was driven by improved gross margins (80% vs 78% YoY) and price increases negotiated last year. Management highlighted that the Fontenay site has improved order shipments and reduced downtime, while the Herouville-Saint-Clair site benefited from new product launches like Encepur. While Q2 will see a seasonal dip due to summer shutdowns, the long-term trajectory is aimed at high single-digit or low-teen EBITDA margins.

Aggressive GLP-1 and Cartridge Capacity Expansion

Gland is positioning itself as a major CDMO player in the GLP-1 space, currently operating a 40 million unit cartridge capacity. The company is adding another 100 million units of capacity, with the Factory Acceptance Test (FAT) scheduled for September and full commercial readiness by March/April 2026. Management expects to supply approximately 20 million units in FY27, primarily for the Liraglutide and Semaglutide markets. The new high-speed pen lines are capable of producing 160 to 200 pens per minute, offering significant throughput advantages over traditional vial filling.

US Market Dynamics and Pipeline Momentum

The US market contributed ₹7,443 million, representing 49% of total revenue. Growth was supported by the launch of 9 new molecules during the quarter, including Epinephrine and Acetaminophen bags. Despite a temporary slowdown in Enoxaparin supplies (₹70 crores this quarter vs ₹130-140 crores normally), management maintained its full-year guidance of mid-teen growth for the US. Key upcoming catalysts include the launch of Dalbavancin in the September quarter and the continued rollout of the RTU (Ready-To-Use) infusion bag portfolio, which now has 14 approved products out of 20 filed.

Geographic Diversification Beyond the US

Gland is successfully deepening its presence in non-US markets, with 'Other Regulated Markets' (Europe, Canada, Australia, NZ) growing 34% YoY to account for 27% of total revenue. The Rest of the World (RoW) segment saw a modest 5% increase to ₹2,978 million, but management believes this business can double over the next few years through portfolio optimization and activating dormant registrations. In India, the company is exploring inorganic opportunities to achieve significant growth, although it currently represents only 4% of total revenue.

R&D Strategy and Complex Injectables

R&D remains a core pillar, with ₹460 million spent in Q1 (4.4% of base revenue). The company filed one ANDA and received nine approvals during the quarter. The complex injectables pipeline is expanding, with six products already launched and three more awaiting approval. Gland's co-development model now comprises 15 products, including seven 505(b)(2) submissions. Management is also making a strategic push into advanced formats like dual and triple chamber bags and microsphere bulk filling to maintain its competitive edge in large-scale injectable solutions.

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