Gland Pharma profit jumps 58% to 2,908 million rupees in second quarter
Key Facts
Gland Pharma reported on November 6, 2026, that net profit rose 58% year on year to 2,908 million rupees in the second quarter of fiscal 2027, as revenue grew 23% to 18,336 million rupees. Results were driven by strong U.S. sales and contract manufacturing activity, the company said in a statement. Earnings before interest, taxes, depreciation and amortisation rose 53% to 4,804 million rupees, and the margin widened to 26% from 21% a year earlier. Adjusted operating profit also increased 50% to 5,030 million rupees, with a margin of 27% versus 23%. But net profit fell 8% from the first quarter, when it was 3,170 million rupees, highlighting the difference between annual momentum and quarterly performance.
The United States generated the company’s largest revenue, at 11,795 million rupees, up 42% year on year and 20% from the previous quarter. U.S. market revenue in the first half of fiscal 2027 was about 21,605 million rupees, up 37% from the same period a year earlier. Management attributed the expansion to new product launches and newer contract manufacturing business. The company launched 4 molecules in the United States during the quarter: Sugammadex, Erythromycin, Fluorouracil and Atropine sulfate. It submitted 11 new ANDA filings and received 10 approvals during the quarter. Its total U.S. filings reached 399, including 350 approved and 49 pending.
Revenue was split between two main businesses, with contract manufacturing growing faster. CDMO revenue rose 31% to 8,227 million rupees, equivalent to 45% of total revenue. Revenue from critical care injectables increased 18% to 10,109 million rupees, accounting for 55% of the total. The executive chairman said CDMO growth was based on “broader customer engagement, strategic partnerships and a strong pipeline of opportunities.” He added that the company continues to invest in manufacturing, innovation and capacity expansion to capitalise on global outsourcing opportunities. With CDMO accounting for nearly half of revenue, the business’s performance was a key element of the quarter’s growth mix.
Geographic performance varied: Europe revenue rose 30% year on year to 3,710 million rupees, while revenue from Canada, Australia and New Zealand fell 18% to 400 million rupees. Revenue from the rest of the world declined 21% to 2,044 million rupees, despite 23% growth in total revenue. Sales in India also fell 42% year on year, according to company figures. The results show the quarter’s growth relied on specific markets, particularly the United States and Europe, while other markets weakened. Reuters reported that the company’s results have improved steadily since production recovered at its Cenexi units in France and Belgium in late 2025, after disruption at those units hurt results through most of the previous year.
Research and development spending rose to 1,077 million rupees in the quarter, equivalent to 6% of revenue, compared with 817 million rupees in the corresponding quarter of fiscal 2026. The company directed the spending toward developing complex products and increasing the number of filings. This came alongside ANDA submissions and continued U.S. approvals, steps that expand its portfolio of products that can be marketed in that market. Reuters also said Indian generic drugmakers with significant U.S. exposure face limited pricing power and intense competition. It pointed to subdued U.S. sales at larger rivals in the same quarter, a backdrop that puts Gland Pharma’s growth against the challenge of sustaining performance amid continued competition.
The chief financial officer reaffirmed full-year fiscal growth guidance of 15% on a constant-currency basis and said the company expects the rest-of-world markets to improve and U.S. growth to continue. He attributed U.S. market growth to new launches and newer CDMO business, adding that it “is not volatile.” The outlook therefore links continued U.S. strength with improvement in other markets, some of which declined during the quarter. New chief executive Deepak Sapra is scheduled to join the company on November 16, 2026. This follows the results announcement published on November 6, while delivery on the annual guidance remains tied to the performance of the markets and businesses cited by management.