Glenmark Pharmaceuticals Limited Earnings Summary — Q4 FY2026
Glenmark Pharmaceuticals Reports Muted Sequential Growth in Q4 FY26 Amid Substantial Debt Reduction
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 6.6% sequentially in Q1 FY2027.
- Revenue of ₹4,018 Cr is 23.1% higher year-on-year.
- Revenue has compounded at 12.8% annualised over the last 10 quarters.
- Net profit of ₹483 Cr is 930.3% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 19.1% annualised across the period.
- Operating margin stands at 20.0% in Q1 FY2027.
- Operating margin expanded by 225 bps year-on-year.
- Over the last two years operating margin has expanded by 190 bps.
- PBT margin is 16.0%.
- Expense growth of 19.7% remained below revenue growth of 23.1%.
- Operating profit of ₹805 Cr is 38.6% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 72/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 4,018 | 3,771 | 3,901 | 6,047 | 3,264 | 3,256 | 3,388 | 3,434 | 3,244 | 3,063 |
| Expenses | Improving | 3,214 | 3,008 | 3,031 | 3,687 | 2,684 | 2,695 | 2,787 | 2,832 | 2,656 | 2,559 |
| Operating Profit | Volatile | 805 | 763 | 870 | 2,360 | 581 | 561 | 600 | 602 | 588 | 504 |
| Operating Margin | Improving | 20.0% | 20.2% | 22.3% | 39.0% | 17.8% | 17.2% | 17.7% | 17.5% | 18.1% | 16.5% |
| Other Income | Volatile | 66 | -184 | -140 | -1,184 | -297 | -361 | 31 | 39 | 31 | 351 |
| Interest | Stable | 54 | 43 | 41 | 66 | 58 | 67 | 52 | 48 | 40 | 149 |
| Depreciation | Stable | 173 | 148 | 154 | 141 | 130 | 125 | 123 | 120 | 118 | 151 |
| Profit Before Tax | Volatile | 643 | 388 | 534 | 967 | 96 | 8 | 456 | 473 | 462 | 555 |
| Tax | Volatile | 161 | 86 | 131 | 357 | 49 | 4 | 108 | 118 | 122 | 1,769 |
| Net Profit | Improving | 483 | 301 | 403 | 610 | 47 | 5 | 348 | 354 | 340 | -1,218 |
| Net Margin | Improving | 12.0% | 8.0% | 10.3% | 10.1% | 1.4% | 0.1% | 10.3% | 10.3% | 10.5% | -39.8% |
Key Takeaways
- Revenue for Q4 FY26 grew 15.8% year-on-year to ₹3,771 Cr, though it declined slightly on a sequential basis.
- The company achieved a massive recovery in Net Profit compared to the nominal ₹4 Cr recorded in the same quarter last year.
- Operating Profit Margin improved to 20% from 17% YoY, despite a cooling off from the exceptional 39% seen in Sep 2025.
- Debt levels have been drastically reduced, with total borrowings falling from ₹2,473 Cr in Mar 2025 to just ₹594 Cr in Mar 2026.
- Working capital remains a significant drag, with inventory levels rising to ₹4,390 Cr by fiscal year-end.
- The tax rate stabilized at 22% for the quarter, a significant normalization compared to the high volatility seen in previous years.
- Other income remained negative at -₹184 Cr, impacting the final bottom line performance for the quarter.
Management Guidance
Management is focused on pivoting toward specialty dermatology and respiratory products to move up the value chain. Strategic efforts are underway to contain costs and improve the working capital cycle, which currently exceeds the industry median.
Sentiment Shift
Improving
While sequential numbers dipped, the fundamental balance sheet strength has significantly improved following divestments and aggressive deleveraging.
Outlook
The outlook remains positive regarding solvency due to near debt-free status, but operational volatility in the US generics market and high inventory levels present near-term hurdles for PAT stability.
From the Annual Report (Key Quotes)
“The company has transitioned from a high-growth generic player to a specialty and innovation-focused firm.”
“Strategic agility was shown through recent divestments which significantly deleveraged the balance sheet.”
“Execution on PAT stability remains unproven despite the recovery from FY24 losses.”
Official Quarterly Documents
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This summary is AI-generated from Glenmark Pharmaceuticals Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.