Glenmark Pharma Q2 Profit Falls 57% to 264 Crore

Glenmark Pharma reported a sharp 56.78% year-on-year decline in consolidated net profit to Rs 263.83 crore in Q2 FY27, reflecting significant pressure on its quarterly earnings.

The company had recorded Rs 610.43 crore in net profit during the corresponding quarter last year.

Revenue also declined 29.8% to Rs 4,247.32 crore from Rs 6,046.87 crore. Exceptional expenses, including a settlement with US health insurer Humana and related legal costs, further weighed on profitability.

The results highlight the financial pressure Glenmark faced during the September quarter despite continued growth across several markets.

Key Highlights

• Net profit fell 56.78% to Rs 263.83 crore.
• Revenue declined 29.8% to Rs 4,247.32 crore.
• EBITDA dropped 63.4% to Rs 864 crore.
• EBITDA margin contracted to around 20% from 39%.
• Humana settlement and related expenses contributed to exceptional costs.

Humana Settlement Adds to Glenmark Pharma's Profit Pressure

Glenmark Pharma faced additional earnings pressure from exceptional expenses during the September quarter. Its US subsidiary entered into a USD 15.28 million settlement with Humana, a US health insurer, over allegations involving generic drug pricing.

Glenmark denied Humana's allegations and clarified that the settlement did not represent an admission of liability or illegality. However, the settlement, alongside legal costs and other one-time expenses, contributed to exceptional charges of approximately Rs 284 crore during the quarter.

These expenses added to the pressure on profitability. EBITDA fell 63.4% to Rs 864 crore, while the operating margin contracted sharply to around 20%. The decline in earnings therefore reflected both lower reported revenue and the impact of exceptional costs.

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Glenmark Pharma Maintains FY27 Growth Guidance

Despite the sharp profit decline, Glenmark Pharma retained its full-year FY27 consolidated revenue guidance of Rs 17,000–18,000 crore and an expected margin range of 21–22%.

Its regional performance offered some encouraging signals:

• India formulations revenue grew 14% to Rs 1,327 crore.
• Emerging markets revenue increased 33.2% to Rs 876 crore.
• North America's core business grew approximately 31%, excluding deferred oncology licensing income.

Chairman and Managing Director Glenn Saldanha expressed confidence in the company's growth outlook, supported by multiple launches, continued India growth and stronger emerging markets performance.

Glenmark also expects its partnered oncology pipeline to advance towards commercialization, with its first launch targeted by the end of FY27. The company continues to focus on restoring North American growth while strengthening its broader business performance.