Marksans Pharma Q2 Results: Profit Climbs 1.5%, Revenue Soars 12% Amidst Global Expansion!

Healthcare/Biotech

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Updated on 13 Nov 2025, 03:21 pm

Marksans Pharma Limited announced its financial results for the quarter ended September 2025 (Q2 FY26), reporting a net profit of ₹98.2 crore, a modest increase of 1.5% from ₹96.7 crore in the same period last year. Total revenue for the quarter saw a significant jump of 12%, reaching ₹720 crore compared to ₹642 crore in Q2 FY25, indicating strong business expansion.

However, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) declined by 1.7% to ₹144.7 crore from ₹147.2 crore. The operating margin also contracted to 20% from 23% in the prior-year period. Despite this, gross profit grew by 7.4% to ₹411.8 crore, with a gross margin of 57.2%. Earnings Per Share (EPS) stood at ₹2.2 for the quarter.

For the first half of FY26 (H1 FY26), operating revenue reached ₹1,340.4 crore, an 8.8% increase year-on-year. Gross profit for H1 FY26 was ₹770.0 crore, up 8.1%, with a gross margin of 57.4%. EBITDA for the half-year was ₹244.6 crore, yielding an EBITDA margin of 18.2%, and EPS was ₹3.5.

The company highlighted strong performance in key international markets. The formulation business in the US and North America generated ₹387.3 crore in Q2 FY26, showing resilience. The UK and Europe segment contributed ₹245.3 crore, meeting revenue and margin targets despite pricing pressures, with positive demand and upcoming filings supporting future growth. Australia and New Zealand posted ₹61.3 crore, and the Rest of the World (RoW) segment added ₹26.5 crore.

The company generated ₹75.2 crore from operations and incurred ₹73.2 crore in capital expenditure during H1 FY26. The working capital cycle was around 150 days, and cash reserves stood at ₹666.5 crore as of September 30, 2025. Research and development expenditure for H1 FY26 was ₹26.2 crore, or 2.0% of revenue, underscoring a continued focus on innovation.

Impact: This news directly impacts Marksans Pharma Limited's stock performance and investor sentiment towards the pharmaceutical sector. The mixed results, with strong revenue growth but declining EBITDA and margins, warrant investor attention. The positive international performance is a key strength. Rating: 6/10.

Difficult Terms: * Net Profit: The profit remaining after all expenses, taxes, and interest have been deducted from total revenue. * Revenue: The total income generated by a company from its primary business activities. * EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of a company's operating performance that excludes the impact of financing and accounting decisions. * Operating Margin: A profitability ratio that shows the percentage of revenue that remains after deducting operating expenses. * Gross Profit: Revenue minus the Cost of Goods Sold (COGS). * Gross Margin: Gross Profit as a percentage of Revenue, indicating production efficiency. * Earnings Per Share (EPS): A company's net profit divided by its outstanding shares, showing profit attributable to each share. * Capital Expenditure (CapEx): Funds used to acquire or upgrade physical assets like property, buildings, or equipment. * Working Capital Cycle: The time it takes for a company to convert its inventory and other short-term assets into cash.