Gland Pharma Limited — Q2 FY26 earnings call

Call held 3 Nov 2025

Management summary

Gland Pharma delivered a steady Q2 FY26 with 6% revenue growth, characterized by strong performance in the US base business and narrowing losses at Cenexi. While the first half saw 7% growth, management is highly optimistic about a 'stronger second half' driven by key launches like Dalbavancin and new CDMO contracts. The company is aggressively pivoting toward complex injectables and biologics, with significant capacity expansions underway for GLP-1 and biosimilar fill-finish.

Highlights

  • Consolidated Revenue reached ₹14,869 million, representing a 6% YoY growth.

  • Consolidated EBITDA stood at ₹3,139 million with a 21% margin; adjusted for one-offs, EBITDA was ₹3,355 million (23% margin).

  • Base business (excluding Cenexi) delivered a robust adjusted EBITDA margin of 37%.

  • US Revenue grew 8% YoY to ₹8,005 million, driven by 7 new product launches including Daptomycin-RTU.

  • Cenexi reported revenue of €40 million (up 8% YoY in Euro terms), with EBITDA losses narrowing to €5 million from €11 million.

  • R&D investment increased to 5.8% of revenue (₹614 million) due to 6 new ANDA filings and complex portfolio development.

  • Management maintained mid-teen consolidated revenue growth guidance for FY26, implying a >20% growth requirement in H2.

  • GLP-1 capacity expansion is on track to reach 140 million units by mid-next year from the current 40 million.

Key financials

  1. Revenue 14,869 Mn +6%YoY
  2. EBITDA Margin 21%
  3. PAT 1,837 Mn +12%YoY
  4. R&D Spend 5.8%
  5. Cash and Equivalents 30,999 Mn

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

Share of Revenue
13,742 Mn Total
  • US Market 8,005 Mn 58.3%
  • Cenexi 4,102 Mn 29.9%
  • Rest of the World (ROW) 1,635 Mn 11.9%

Guidance & targets

Revenue

  • Consolidated Revenue Growth Revenue · FY26 · High confidence mid-teens

    From mid-teens today

    Yes. Neha, on a consolidated basis, we should be there. Maybe a few percentage here and there but should be there.

    — Ravi Mitra, CFO

Capacity

  • Cartridge Fill/Finish Capacity Capacity · mid-2026 · High confidence 140 million units

    From 40 million units today

    So by mid of next year, we'll be having 140 million capacity on cartridges, which makes us one of the top tier capacities here.

    — Shyamakant Giri, CEO

Capex

  • Base Business Capex Capex · FY26 · Medium confidence ₹2,500 million
    The expected capex for full year FY '26 for Gland base business is approximately INR2,500 million.

    — Ravi Mitra, CFO

Margin

  • Base Business EBITDA Margin Margin · Long-term · Medium confidence 35%
    We're targeting around 35%, now it's 37%.

    — Srinivas Sadu, Executive Chairman

Market context

  • Cenexi EBITDA Breakeven Profitability · Q3 FY26 · High confidence Positive
    No, no, we do stick to that breakeven guidance for this quarter [Q3FY26].

    — Srinivas Sadu, Executive Chairman

Risks & concerns

  • Cenexi Operational Losses

    medium

    Cenexi is still loss-making (€5m EBITDA loss in Q2) due to planned shutdowns and infrastructure upgrades.

    Both acknowledged

  • CMO Business Decline in ROW

    medium

    CMO product revenue in Rest of World markets fell by 53% as certain tech transfer projects concluded.

    Management acknowledged

  • Milestone Revenue Volatility

    low

    Milestone revenue was lower at ₹44-45 crore vs. the normal ₹75-80 crore run rate due to timing of approvals.

    Management downplayed

Areas of evasion (2)

  • Specific annualized sales for RTU products (taken offline).
  • Detailed breakdown of the $250 million Cenexi pipeline timeline.

Q&A highlights

2 direct
H2 Growth Visibility Direct
Dalba is a bigger product which we're going to be launch this quarter... we should come closer to [mid-teen guidance].

Confirms that management is banking on a massive H2 ramp-up (>20% growth) to meet full-year targets, primarily driven by the Dalbavancin launch.

Asked by Neha Manpuria, Bank of America

GLP-1 and Semaglutide Strategy Partial
The majority of the market comes only till '30, right? I mean the sema. But all the semi-regulated in Canada will start next year.

Clarifies that while capacity is being built now, the major revenue contribution from Semaglutide is a long-term play (2030), with near-term utilization coming from Liraglutide and other projects.

Asked by Rahul Jeewani, IIFL

Cenexi Turnaround and Exit Rate Direct
Yes, EUR 50 million is our target from Q3... That should be EBITDA positive, yes.

Provides a concrete financial milestone for the troubled Cenexi acquisition, setting a clear benchmark for investors to track in the next quarter.

Asked by Neha Manpuria, Bank of America

2 min read 5 chapters

Detailed narrative

US Market Resilience and New Launches

The US market remains Gland's primary growth engine, with revenue rising 8% YoY to ₹8,005 million in Q2. Growth was driven by a 10% increase in volume and a 7% contribution from new launches, offsetting flat pricing. Key launches during the quarter included Daptomycin-RTU and Sumatriptan. Management highlighted that their top 20 molecules have a market share of 25% or higher, with some reaching 40%, demonstrating strong competitive positioning despite a challenging generic environment.

Cenexi Turnaround Nears Inflection Point

Cenexi's integration is progressing with a focus on cost optimization and product mix improvement. Revenue grew 8% in Euro terms to €40 million, while EBITDA losses were halved to €5 million compared to the previous year. Management is targeting a revenue run rate of €50 million starting Q3 FY26, which is expected to bring the subsidiary to EBITDA breakeven. Infrastructure upgrades at the Fontenay site are complete, and GMP certification has been renewed through 2026.

Strategic Pivot to GLP-1 and Biologics

Gland is aggressively expanding its high-end CDMO capabilities, particularly in the GLP-1 and biologics space. Cartridge fill-finish capacity is being scaled from 40 million to 140 million units by mid-2026 to support insulin and GLP-1 programs. The company has already launched Liraglutide with a partner and has three Semaglutide contracts in the pipeline. In biologics, capacity is being expanded from 8 KL to 23 KL to capture emerging biosimilar opportunities, with revenue from Dr. Reddy's (DRL) collaboration already starting to flow.

H2 FY26 Outlook and Revenue Guidance

Despite a relatively modest 7% growth in H1, management reiterated its mid-teen consolidated revenue growth guidance for the full year. This implies a significant acceleration in H2, which management expects to be 'even stronger' due to the launch of Dalbavancin and the commencement of the Enoxaparin supply to Civica. The base business continues to operate at high efficiency, maintaining adjusted EBITDA margins at 37%, well above the long-term target of 35%.

R&D Intensity and Complex Portfolio Focus

R&D spend spiked to 5.8% of revenue this quarter as the company focuses on complex injectables and next-generation delivery systems. Gland filed 6 ANDAs and received 5 approvals during the quarter. The pipeline includes 20 RTU bag products (14 approved) and 15 products under active development in high-potential categories, including seven 505(b)(2) filings. This shift toward complex, high-entry-barrier products is central to Gland's strategy to improve Return on Capital Employed (ROCE) and margin resilience.

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