Gland Pharma reported strong Q2 FY27 results with revenue rising 23% to Rs 18,336 million. Profit growth was driven by a 42% surge in US market revenue and a 31% jump in the CDMO business. The company also announced the acquisition of a 60% stake in Novelstar Pharma Inc., expanding its footprint in the US. While operational efficiency boosted EBITDA margins to 26%, investors should watch the 42% revenue decline in India and tender-related headwinds in emerging markets.
Gland Pharma Reports 58% Surge in Q2 Profit to Rs 2,908 Million
Revenue grew 23% YoY to Rs 18,336 million as US market demand drives strong operational growth.
Reader Takeaway: Strong US market growth and CDMO expansion drive profit, while India revenue and tender delays pose risks.
What just happened
Gland Pharma has reported its financial results for the quarter ended September 30, 2026. The company achieved a consolidated revenue of Rs 18,336 million, a 23% increase over the same period last year. Profit After Tax (PAT) grew by 58% YoY, reaching Rs 2,908 million. EBITDA margins witnessed a healthy expansion, moving from 21% in the previous year to 26% this quarter.
Why this matters
The results highlight the company's successful shift in business mix. The US market continues to be the primary engine, growing 42% to contribute Rs 11,795 million. Meanwhile, the CDMO (Contract Development and Manufacturing Organization) business has solidified its position, growing 31% and now accounting for 45% of total revenue. These core areas are helping the company offset volatility in other segments.
Strategic Developments
In a significant move to strengthen its US presence, Gland Pharma acquired a 60% stake in Novelstar Pharma Inc. through its subsidiary, Gland Pharma USA Inc. The deal, effective November 1, 2026, makes Novelstar a step-down subsidiary. This acquisition is expected to further integrate the company’s operations in the high-value US market.
Risks to watch
Investors should monitor the India segment, which saw a sharp 42% revenue decline to Rs 387 million. Additionally, growth in the Rest of the World (RoW) segment faced pressure due to delayed tender cycles in the Middle East. Sustaining high R&D spending, which stood at Rs 1,077 million (6% of revenue) this quarter, remains critical for the long-term approval pipeline.
Context metrics
- Total ANDA filings: 399
- Approvals received in Q2 FY27: 10
- EBITDA: Rs 4,804 million (up 53% YoY)
What to track next
The focus will now shift to the integration of Novelstar Pharma Inc. and how quickly the company can stabilize its India operations. Investors should also track upcoming tender awards in the Middle East to gauge the recovery of the RoW segment.