Glaxosmi. Pharma

GlaxoSmithKline Pharmaceuticals reported a strong Q3 FY26, achieving a consolidated revenue of over INR 1,000 crores for the first time, marking approximately 10% year-on-year growth. Standalone revenue grew by 8.1%. The company's underlying growth, excluding INR 25-30 crores in lost sales due to a CMO fire, would have been around 11%. This performance was supported by the resolution of supply constraints that had impacted the previous two quarters, with inventories now building up for Q4 onwards.

The quarter saw significant profitability improvements. EBITDA margin expanded by 520 basis points to 35.9%, driven by gross margin improvements and disciplined cost control, resulting in a 26.7% growth in EBITDA. PAT margin also improved by 290 basis points to 27.3%, contributing to a 9% growth in EPS. Management emphasized their focus on sustaining these improved margin levels, which have steadily increased from 24.3% two years ago.

The company is actively transforming its portfolio, moving from established general medicines towards high-growth specialty and oncology segments. General medicines, including key brands like Augmentin, Ceftum, and T-Bact, returned to double-digit growth. The vaccine business continued its strong trajectory with 11% growth for the quarter, led by Boostrix, Varilrix, and Havrix. Specialty products like Nucala and Trelegy also contributed to growth, alongside the initial traction from the oncology portfolio.

Q3 FY26 marked the first full quarter for the oncology portfolio (Zejula and Jemperli). A significant development was the regulatory approval in December 2025 for Jemperli in first-line endometrial cancer (RUBY-1 trial), expanding the eligible patient pool from 800 to 6,000-7,000 patients. The company currently has approximately 250 patients on treatment with Zejula and Jemperli. Upcoming oncology assets include Blenrep for multiple myeloma, slated for launch in the next financial year (Q2/Q3 latest), and liver disease assets like Bepirovirsen and Efimosfermin, which have seen global trial readouts with Indian participation.

GlaxoSmithKline Pharmaceuticals aims to double its business to INR 8,000 crores over the next 4-5 years, targeting an annual revenue growth rate of 12-14%. This growth will be fueled by the sustained high single-digit growth of the base business and significant contributions from new launches in specialty and oncology. The company projects a 'freshness index' (contribution from products launched in the last 2-3 years) of 10-15% for the coming financial year, potentially rising to 20-25% over the next 5-7 years.

The company continues to leverage its omnichannel strategy, combining face-to-face interactions with digital connections, achieving approximately 4 million HCP touch points in Q3. The field force of around 2,000 sales representatives in general medicines remains stable. Expansion of the field force is strategically focused on specialty areas like oncology and hematology, with a new hematology team planned for launch in the coming weeks/months to support new product introductions.