Glenmark’s Core Businesses Gain Momentum as Q2 Reported Revenue Falls on Licensing-Base Effect

Glenmark Pharmaceuticals has been reshaping its portfolio around branded therapies, respiratory products, dermatology and oncology, while expanding specialised generic capabilities in the US. The company’s second-quarter performance showed stronger underlying commercial momentum despite a sharp reported revenue decline caused by an unfavourable comparison with prior licensing income.

Consolidated revenue for the quarter ended September 30, 2026, stood at Rs 4,247.3 crore, down 29.8 per cent YoY from Rs 6,046.9 crore. On a like-for-like basis, however, revenue rose by around 20 per cent. The reported comparison was affected by deferred out-licensing income recognition for ISB 2001 in the previous year, particularly in North America.

Earnings before interest, Tax, depreciation and amortisation, or EBITDA, came in at Rs 863.8 crore, with the margin at 20.3 per cent. Adjusted profit after tax, or PAT, was Rs 485.2 crore, translating into an 11.4 per cent margin. Reported PAT was Rs 263.8 crore, down from Rs 610.4 crore a year earlier, reflecting the absence of the prior-year income benefit and lower reported revenue.

India formulations revenue was Rs 1,327.4 crore. On a like-for-like basis, the domestic business grew around 14 per cent YoY, supported by secondary sales growth of 16.7 per cent against 13.8 per cent growth in the Indian pharmaceutical market. Glenmark ranked 13th in India with a 2.4 per cent market share and retained strong positions in dermatology, respiratory and cardiac therapies.

North America revenue fell to Rs 1,208.9 crore from Rs 4,465.6 crore, but the core business grew around 31 per cent after excluding deferred ISB 2001 income. The company launched four products during the quarter and secured its first approval for fluticasone propionate inhalation aerosol, 44 mcg. The product has a Competitive Generic Therapy designation and 180 days of exclusivity upon commercialisation, which could support the respiratory portfolio.

Europe revenue rose 6.2 per cent to Rs 792 crore, while Emerging Markets grew 33.2 per cent to Rs 876.9 crore. RYALTRIS was commercialised in 58 markets and recorded global secondary sales growth of over 30 per cent YoY. Glenmark also expects its first launch of QiNHAYO in FY27 and the first commercial launch of Aumolertinib in the second half of the year.

As of 1:57 pm on November 6, 2026, Glenmark Pharmaceuticals shares were trading at Rs 2,632.40. The stock was up 5.91 per cent from the previous close of Rs 2,485.50. Over the past year, the shares have gained 36.68 per cent, compared with a 2.16 per cent decline in the BSE 500, indicating that the market has already assigned value to Glenmark’s improving base-business growth and innovation pipeline. The company’s market capitalisation stood at Rs 70,146.9 crore.

What This Means for Investors

The quarter supports Glenmark’s effort to reduce dependence on commodity generics by building branded and differentiated businesses. India is sustaining market-beating secondary sales growth, while the North American recovery is being led by respiratory launches rather than injectables, which remain a longer-term opportunity. RYALTRIS expansion and planned oncology launches can further diversify revenue across Europe and Emerging Markets. The 20.3 per cent EBITDA margin also indicates that the core business is holding up despite ongoing cost pressure.

The reported decline in revenue and PAT should be assessed against the prior-year ISB 2001 licensing-income comparison, rather than viewed solely as weakening operations. Still, delivery now depends on converting US respiratory approvals into sales, maintaining India’s volume-led momentum and executing oncology launches across new markets. Glenmark trades at 48.33 times trailing earnings and 19.35 times enterprise value to trailing EBITDA, which leaves limited room for delays in launches, sustained freight and input-cost inflation, or slower commercial adoption of specialty products.

Disclaimer: The article is for informational purposes only and not investment advice.