Glenmark Pharmaceuticals Limited — Q3 FY26 earnings call

Call held 2 Feb 2026

Management summary

Glenmark Pharma delivered a strong Q3 FY26, with consolidated revenue growing 15.1% Y-o-Y to INR39,006 million, driven by robust performance in India, North America, and Europe. The company maintained a 23% EBITDA margin and is on track to achieve net debt zero by March '26. Key innovative products like RYALTRIS continue to scale, and the Monroe facility's FDA clearance is a significant positive for the US business, despite a long breakeven timeline.

Highlights

  • Consolidated revenue from operations was at INR39,006 million, a Y-o-Y growth of 15.1% (Q3 FY26) and 31.3% (9M FY26).

  • India formulation business recorded a Y-o-Y growth of 22.1% to INR12,986 million, outperforming the IPM.

  • North America business grew 24.2% Y-o-Y to INR9,706 million (including ISB 2001 out-licensing income).

  • Europe operations grew 9.1% to INR7,963 million, aided by winter season and respiratory portfolio.

  • Emerging markets revenue grew 8.4% to INR8,119 million, with Latin America delivering high double-digit growth.

  • RYALTRIS continues strong global performance with 50%+ Y-o-Y secondary sales growth and commercialized in 52 markets.

  • Monroe manufacturing facility received EIR from U.S. FDA with VAI status, allowing restart of manufacturing.

  • On track to beat debt 0 by March '26 and normalize working capital to 115 days by March '26.

Concerns

  • Gross margin impacted by product mix, though operating leverage helped overall margin.

  • Middle East/Africa region secondary sales growth remains subdued due to new product launch delays.

  • Monroe facility will take approximately 4 years to breakeven at the operating level.

  • US business growth in Europe is expected to be high single-digit to low double-digit going forward, lower than past 25% CAGR.

Key financials

2 periods

Headline

  • Consolidated Revenue
    39,006 Mn
    YoY +15.1%
  • EBITDA Margin
    23%
  • R&D Spend
    ₹290 Cr

9M

  • Consolidated Revenue
    1,32,119 Mn
    YoY +31.3%

What they filed

Q1 FY27: revenue up 1.7%, net profit up 123.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue2,636 2,251 2,010 2,395 1,539 −42%2,360 +5%2,147 +7%2,435 +2%
EBITDA779 494 341 728 -178 −123%496 +0%32 −91%613 −16%
Net profit595 414 148 330 -739 −224%282 −32%-74 −150%736 +123%
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

  • India Formulation Business
    12,986 Mn Sales22.1% Y-o-Y Growth15.8% IQVIA Growth (Q3)13% IQVIA Growth (MAT Dec 2025)
  • North America
    9,706 Mn Revenues24.2% Y-o-Y Growth4.1% Core Business Y-o-Y Growth
  • Europe
    7,963 Mn Operations9.1% Growth
  • Emerging Markets
    8,119 Mn Revenue8.4% Growth
  • Consumer Care (India)
    21.5% Sales Growth

Capital allocation

high confidence
  • Capex ₹215 Cr this quarter · ₹700 Cr (FY26) planned
    • Intangible assets (Q3) ₹118.25 Cr
    • Tangible assets (Q3) ₹96.75 Cr
    • Ongoing capex (plants, expanding lines)
    • In-licensing products
    So capex in this quarter was around INR215 crores, and YTD capex was INR715 crores. And on this quarter, capex, around 55% was on intangible and 45% was tangible. So that's what the broadly capex number was. On net cash, if you see, we remain net cash positive. And in fact, the gross debt was close to around INR100 crores, and net cash was also close to INR600 crores. In fact, we had a large payment in this quarter of around INR125 crores, which includes IGI tax, dividend, we have paid we had a capex amount. So that's despite that, actually, we remain on cash -- overall net cash positive. ... I think the capex typically is around running at around INR700 crores, INR800 crores a year. You should see the same INR800 crores is the capex for next year. Actually next year, we should see. ... So that's the way to think about it. And I think the investment is all going into, one, is ongoing capex, right, in terms of plants, expanding our current lines and various facilities, right? That's the bulk of it. And Hengrui... And some of the in-licensing product.
  • Debt Gross ₹600 Cr
    And in fact, the gross debt was close to around INR100 crores, and net cash was also close to INR600 crores. In fact, we had a large payment in this quarter of around INR125 crores, which includes IGI tax, dividend, we have paid we had a capex amount. So that's despite that, actually, we remain on cash -- overall net cash positive. ... So cash is at a consolidated basis. Basically, Ichnos money we actually keep utilizing as per their phasing requirement. So it's not that we keep that cash separately. So it's a consolidated number, which I told you on that INR600 crores of net cash.
  • M&A Hengrui Pharmaceuticals (Trastuzumab Rezetecan) In licensing · Integrated

    In-licensed next-generation HER2-targeting antibody drug conjugate for several emerging markets.

    Some consideration built into intangible capex.

    Trastuzumab Rezetecan, partnered with Hengrui in Q3. Glenmark advanced its preparations for the initiation of marketing applications for Trastuzumab Rezetecan, a next-generation HER2-targeting antibody drug conjugate, which was in-licensed in the second quarter from Jiangsu Hengrui Pharmaceuticals for several emerging markets. The company expects the first wave of MA applications to begin in Q1 of FY '27. ... On the innovation side, with us doing these 3 transactions, right, the Hengrui transaction, obviously, some of it is built into the intangible number that Anurag mentioned.
  • M&A Hansoh Pharmaceutical Group (Aumolertinib) In licensing · Signed

    Entered exclusive license and collaboration agreement for third-generation EGFR tyrosine kinase inhibitor for NSCLC.

    Payment process ongoing.

    Lastly, Aumolertinib partnered with Hansoh in the third quarter of FY '26, Glenmark entered into exclusive license and collaboration and distribution agreement with Hansoh Pharmaceutical Group for Aumolertinib, a third-generation EGFR tyrosine kinase inhibitor for the treatment of non-small cell lung cancer. ... Aumolertinib, we are still in the process of paying that.
  • Liquidity Cash ₹1,200 Cr Company remains net cash positive.
    On net cash, if you see, we remain net cash positive. ... And in fact, the gross debt was close to around INR100 crores, and net cash was also close to INR600 crores. In fact, we had a large payment in this quarter of around INR125 crores, which includes IGI tax, dividend, we have paid we had a capex amount. So that's despite that, actually, we remain on cash -- overall net cash positive. ... Net cash is also INR600 crores, around INR1200 crores of cash.

Guidance & targets

Revenue

  • RYALTRIS Product Sales Revenue · FY26 · High confidence $100 million
    RYALTRIS will be a $100 million product for us this year and continue to scale as we go forward.

    — Glenn Saldanha

  • RYALTRIS Product Sales Revenue · next 3-5 years · Medium confidence $200-250 million
    So I think getting up to $200 million, $250 million is not going to be a huge challenge for us, right, over the next 3 to 5 years.

    — Glenn Saldanha

Debt

  • Net Debt Debt · March '26 · High confidence 0
    We continue to remain net cash positive and are on track to beat the target that goes debt 0 by March '26.

    — Anurag Mantri

Working Capital

  • Net Working Capital Days Working Capital · March '26 · High confidence 115 days
    Multiple initiatives are ongoing to help normalize working capital movement to remain around 115 days of net working capital days, in line with our guidance by March '26.

    — Anurag Mantri

Profitability

  • EBITDA Level Profitability · Sustainable Basis · High confidence 23%
    I think you will see a recovery on this. And what we see our guidance is the overall at EBITDA level, we are on track to deliver our guidance of 23% on a sustainable basis.

    — Anurag Mantri

  • EBITDA Margins Profitability · FY28 · Medium confidence positive consolidation
    But as Glenn mentioned, FY '28, we see all these newer in-licensing assets coming up and all these things playing out, we should see a good positive consolidation in our gross in our EBITDA margins. Because it will be operating leverage after this actually because our base expenses have been built out. So it will be costs remain fixed and then you can build it on the platform, which we have built across geographies.

    — Anurag Mantri

Product Launches

  • Aumolertinib Commercial Launch Product Launches · H2 FY27 · High confidence H2 FY27
    We will also launch Aumolertinib in the second half of FY '27, and we'll keep scaling up RYALTRIS and WINLEVI going forward.

    — Glenn Saldanha

  • WINLEVI Commercial Launch (Europe) Product Launches · Q1 FY27 · High confidence Q1 FY27
    Glenmark is now planning to initiate the commercial launch in its licensed European territories by Q1 FY '27.

    — Utkarsh Gandhi

  • QiNHAYO Commercial Launch Product Launches · FY27 · High confidence FY27
    QiNHAYO or Envafolimab, Glenmark has filed QiNHAYO marketing applications in 18 markets till date, the first commercial launch is expected in FY '27.

    — Utkarsh Gandhi

  • Trastuzumab Rezetecan MA Applications Product Launches · Q1 FY27 · High confidence Q1 FY27
    The company expects the first wave of MA applications to begin in Q1 of FY '27.

    — Utkarsh Gandhi

  • Aumolertinib MA Applications Product Launches · H1 CY2026 · High confidence H1 CY2026
    Glenmark is preparing to initiate marketing authorization applications for Aumolertinib in the first half of CY2026 and commercial launch anticipated during the second half of FY '27.

    — Utkarsh Gandhi

Monroe Facility

  • Breakeven at Operating Level Monroe Facility · from today · Medium confidence ~4 years
    And at the operating level about, I would say, about 4 years, right, from today, we will breakeven at the operating level.

    — Glenn Saldanha

  • Filings per year Monroe Facility · every year · Medium confidence at least 3
    I think every year, we will have at least 3-odd filings, right, from the site. And we are working specifically on very complex injectables, right?

    — Glenn Saldanha

Revenue Growth

  • Europe Growth Revenue Growth · going forward · Medium confidence high single-digit to low double-digit
    Going forward, I think Europe, you should expect like a single-digit to low-double-digit growth from here, right, given that we've grown our 25% CAGR over the last 3, 4 years.

    — Glenn Saldanha

  • Emerging Markets CAGR Revenue Growth · 5-year basis · Medium confidence north of 20%
    If you see on a 5-year basis, it's north of 20%, very clearly, CAGR.

    — Glenn Saldanha

Product Contribution

  • Innovative Assets (ex-RYALTRIS) Contribution Product Contribution · FY28 · Medium confidence $50 million
    F '28 for sure, you'll be ahead of $50 million, right, collectively ex RYALTRIS.

    — Glenn Saldanha

  • Innovative Assets (ex-RYALTRIS) Meaningful Contribution Product Contribution · F '28 · Medium confidence F '28
    I think F '28, you'll see a big, big upswing, right? Because F '28, as I said, you'll have this Aumolertinib plus you'll have some of the Hengrui, some markets of Hengrui. Plus of course, India will be really meaningful. I mean starting F '27 itself in the second half with Aumolertinib being launched, right, and in India, right?

    — Glenn Saldanha

What to watch in Q4 FY26

Flovent 44 Approval

Very quickly / Q4 FY26
Current Very close to approval
Target Approval received

Why it matters

Flovent 44 is a significant respiratory product for the US market, and its approval will drive US business growth.

So all I can say is we've had multiple discussions with the agency, and we are very close to we're hoping we'll get an approval very quickly on Flovent 44.

Risks & concerns

  • Geopolitical uncertainty and currency depreciation

    medium

    Overall geopolitical uncertainty remains prevalent, and depreciating global currencies impacted performance, though also helped in some areas.

    Management acknowledged

  • Long breakeven period for Monroe facility

    medium

    The Monroe facility will take approximately 4 years to breakeven at the operating level, indicating a longer gestation period for returns.

    Management acknowledged

  • Regulatory issues at certain Indian plants for US market

    medium

    Goa and Indore plants are under warning letters, requiring tech transfer of products to US CMOs for continued supply.

    Analyst acknowledged

  • Subdued growth in Middle East/Africa

    low

    Secondary sales growth in the Middle East/Africa region remains subdued due to new product launch delays, though recovery is expected in Q4.

    Management acknowledged

Q&A highlights

3 direct, 1 evasive
Quantification of currency depreciation impact on growth Partial
So Damayanti, currency depreciation sits in the goes into the multiple part of the P&L. So in a normal business case, whatever the revenue and in terms of the changes converting that revenue from that geography into the rupee term, that goes and sits in the normal EBITDA side. And if you see on an exceptional item, there is a currency difference of INR7.3 crores which is only on exceptional items. So out of exceptional item, INR177.8 crores is due to the labor court and balance INR77 sorry, INR7 crores is because of the exceptional item. And so it sits into the multiple part of the businesses, and it's difficult to actually quantify that.

Analyst sought to understand the organic growth excluding currency benefits, but management indicated difficulty in precise quantification due to its pervasive impact across P&L.

Asked by Damayanti Kerai

Status of Flovent approval from FDA Evasive
So all I can say is we've had multiple discussions with the agency, and we are very close to we're hoping we'll get an approval very quickly on Flovent 44.

Flovent is a key respiratory product for the US market, and analysts are keen on its approval timeline, which management kept vague.

Asked by Damayanti Kerai

Working capital management target and current status Direct
Right now, we are actually, again, lower than 115 days. But as the business activities increase, that's why we are keeping. But right now, we are close to 110 days.

Provides an update on a key efficiency metric and confirms the company is ahead of its stated target for March '26.

Asked by Damayanti Kerai

Business trajectory and filing strategy for Monroe facility post FDA EIR Partial
So I think we will start commercial production in this quarter. And we have 1 or 2 approved products, so we will start commercializing that next year, you can anticipate we will sell about 3 products with a number of filings, right, next year. And I think the way to think about Monroe is it's it will take some time, right, for the site to be fully in full flow, right, in terms of commercial production. And at the operating level about, I would say, about 4 years, right, from today, we will breakeven at the operating level.

Clarifies the immediate commercialization plans and long-term breakeven timeline for the Monroe facility, which is crucial for US business growth.

Asked by Tushar Manudhane

Breakdown of RYALTRIS sales contribution by geography Partial
It's pretty broad-based. So Europe, obviously, is a big driver, along with some leading emerging markets like Russia, Australia and multiple other countries, right, which -- where the bulk of the sales are coming from. But I think it's pretty broad-based overall. So there's no country which is more than no geography, which is more than 20%, 25% of sales, somewhere thereabouts.

Analyst sought specific geographic contribution, but management provided a qualitative overview, indicating diversified sales without a single dominant region.

Asked by Tushar Manudhane

Future liabilities and payouts from licensing deals and litigation Partial
So I think just a couple of things, right? On the legal settlements, obviously, Saion, we can't give too much of visibilit, right. However, if you look at the MDL, right, we have done a settlement with the DPPs. That's public information, right? And we still have some of the other classes to go, right, which is mainly the AGs and the EPPs, right, on the MDL, which is probably the largest right now in terms of legal cases. So that's on that side. On the innovation side, with us doing these 3 transactions, right, the Hengrui transaction, obviously, some of it is built into the intangible number that Anurag mentioned. And Aumolertinib, we are still in the process of paying that. I think that is the... So timing-wise, it could be this quarter or it could be early next quarter. I think because it's difficult to actually give you that specific because it depends on the commercial progression of the deal. But I think it could be somewhere at the end of this quarter, early next quarter accordingly.

Addresses potential future cash outflows from legal settlements and in-licensing deals, providing some clarity on timing and nature, though specific amounts remain undisclosed.

Asked by Saion Mukherjee

Gross margin differentiation for specialty/innovative assets Direct
I think that's a very good question. Look, see, oncology assets, the gross margins are significantly higher than where we are today, right, the core business, right? So I think more than the gross margin is also the EBITDA margins will be significantly higher. So there will be a definite margin uplift, right? I would anticipate a lot of this will start playing up from FY '28, not '27.

Confirms that the innovative/oncology portfolio is expected to drive significant margin expansion, providing a timeline for when this impact will become visible.

Asked by Krish Mehta

US filing plants given regulatory scanner on some facilities Direct
So I think the way to think about our U.S. business is there are 2 plants, Aurangabad and Monroe, right, where the bulk of our filings are coming out of. Goa and Indore are under warning letter. So we've tech transferred some of the products to some U.S. CMOs. And I mean we got a sucralfate suspension approved which was from one of the warning letter sites. And likewise, we have some other products which are tech transferred to U.S. CMOs. Baddi, we have completely discontinued U.S. commercialization and filings.

Clarifies which facilities are contributing to US filings and how the company is managing products from sites under regulatory scrutiny, addressing a key investor concern.

Asked by Kunal Randeria

3 min read 6 chapters

Detailed narrative

Consolidated Financial Performance

Glenmark Pharmaceuticals reported a robust Q3 FY26, with consolidated revenue from operations reaching INR39,006 million, marking a 15.1% year-on-year growth. For the first nine months of FY26, consolidated revenue stood at INR132,119 million, a significant 31.3% increase. The company achieved a 23% EBITDA margin for the quarter, demonstrating strong operating leverage despite product mix impacts. Management expressed confidence in closing FY26 on a strong note and commencing Glenmark 3.0 from 2027 onwards.

India Business Outperformance

The India formulation business delivered strong performance, with sales growing 22.1% year-on-year to INR12,986 million in Q3 FY26. According to IQVIA data, Glenmark's India business recorded a 15.8% growth in Q3 and 13% for MAT December 2025, significantly outperforming the overall market growth of 10.9% and 8.3% respectively. The company launched Nebzmart GFB Smartules and Glenmark Airz FB Smartules, the world's first nebulized fixed-dose triple therapy for COPD, and continues to see strong uptake for TEVIMBRA and BRUKINSA. The Consumer Care business also saw a 21.5% Y-o-Y sales growth, with Candid Powder growing 17%.

North America and Europe Operations

North America business recorded revenues of INR9,706 million in Q3 FY26, a 24.2% Y-o-Y growth, which includes out-licensing income for ISB 2001. The core business growth for the region was 4.1%. Glenmark launched 4 injectable products in Q3 and filed 2 ANDAs, with plans for 3 more in the upcoming quarter. In Europe, operations grew 9.1% to INR7,963 million, benefiting from the winter season and a recovery in the respiratory portfolio. WINLEVI, launched in the UK earlier this year, has seen strong uptake, and marketing authorization for WINLEVI in the EU was received in October 2025, with commercial launch planned for Q1 FY27.

Global Innovative Portfolio Progress

RYALTRIS continues its strong global performance, with marketing applications in over 90 countries and commercialization in 52 markets, showing 50%+ Y-o-Y secondary sales growth. The company aims for RYALTRIS to reach $100 million in sales this year and $200-250 million in the next 3-5 years. Glenmark also advanced its innovative pipeline, including QiNHAYO (first commercial launch expected FY27), Trastuzumab Rezetecan (MA applications in Q1 FY27), and Aumolertinib (MA applications in H1 CY2026, commercial launch H2 FY27). These 7-8 innovative assets are expected to drive sales growth over the next 5 years, particularly from FY28 onwards.

Monroe Facility and R&D Updates

The Monroe manufacturing facility received an EIR from the U.S. FDA with a Voluntary Action Indicated (VAI) status in November 2025, allowing manufacturing to restart. Management expects commercial production to begin this quarter, with 1-2 approved products commercializing next year, and anticipates 3-odd complex injectable filings annually from the site. The facility is projected to breakeven at the operating level in approximately 4 years. R&D spend for the quarter was INR290 crores, with about 50% allocated to IGI-related activities. The IGI platform's ISB 2001 is progressing well in Phase I, and ISB 2301 is expected to file IND by calendar year 2026.

Capital Management and Outlook

Glenmark is net cash positive, with gross debt around INR600 crores and total cash around INR1200 crores. The company is on track to achieve net debt zero by March '26. Working capital management initiatives are underway to normalize net working capital days to around 115 by March '26, currently at 110 days. Capex for Q3 FY26 was INR215 crores, with YTD capex at INR715 crores, and annual capex is expected to be around INR700-800 crores for FY26 and FY27. The company foresees a strong finish to FY26 and a good start to its next growth journey, Glenmark 3.0, from 2027 onwards, with significant margin uplift expected from FY28 due to the innovative portfolio.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Healthcare earnings calls