Gland Pharma announced its financial results for the second quarter and first half of FY2027. The company reported a consolidated revenue of INR 18,336 million for Q2 FY2027, marking a 23% increase year-on-year. EBITDA saw a substantial rise of 53% year-on-year to INR 4,804 million. The company highlighted strong performance in its CDMO and critical injectables segments, with robust growth and strategic investments in capacity expansion and R&D.
Gland Pharma Delivers Strong Q2 FY2027 Performance
Gland Pharma has announced robust financial results for the second quarter (Q2) and the first half (H1) of the fiscal year 2027 (FY2027). The company showcased significant growth driven by its core businesses and strategic initiatives.
Q2 FY2027 Financial Highlights
For the second quarter of FY2027, Gland Pharma reported consolidated revenues of INR 18,336 million, representing a growth of 23% year-on-year. EBITDA for the quarter increased by 53% year-on-year to INR 4,804 million. Adjusted EBITDA stood at INR 5,030 million, with margins of 27%. Profit after tax grew by 58% year-on-year to INR 2,908 million.
This strong performance was attributed to several factors, including the continued strength of its business fundamentals, the growing contribution from the CDMO (Contract Development and Manufacturing Organization) business, robust demand in its critical injectable business, successful product launches, improved operating leverage, and disciplined execution.
First Half FY2027 Performance
The first half of FY2027 also demonstrated strong momentum, with revenues growing 21.4% year-on-year to INR 36,339 million. Adjusted EBITDA increased to INR 10,132 million, with margins of 28%. Profit after tax for H1 FY2027 grew by 52% year-on-year to INR 6,077 million.
CDMO Business Growth
The CDMO business continues to be a key growth engine for Gland Pharma. In Q2 FY2027, CDMO revenues grew 31% year-on-year to INR 8,227 million, contributing approximately 45% of total revenues. For the first half of FY2027, CDMO revenues reached INR 17,142 million, a 25% increase year-on-year, accounting for approximately 47% of consolidated revenues. This growth is driven by commercial supply from existing contracts, new launches, and development partnerships.
Critical Injectables Business
The critical injectable business also delivered a strong performance. Revenues stood at INR 10,109 million in Q2 FY2027, an 18% year-on-year growth. For H1 FY2027, revenues from this segment were INR 19,197 million, also growing 18% year-on-year. Growth in this segment is supported by demand for existing products, recent launches, customer acquisitions, and higher volumes.
Geographical Performance
The US remained Gland Pharma’s largest market, delivering outstanding performance with revenues growing 42% year-on-year to INR 11,795 million in Q2 FY2027. For H1 FY2027, US revenues grew 37% year-on-year to INR 21,605 million. Revenues from Europe and other regulated markets grew 23% year-on-year to INR 4,110 million in Q2 FY2027.
Capacity Expansion and R&D Investments
The company is actively investing in capacity expansion, including a brownfield expansion at its Pashamylaram facility and a greenfield project at Vizag SEZ. R&D expenditure in Q2 FY2027 was INR 1,077 million, representing 6% of revenues, with a focus on complex injectables and differentiated technologies. The company has also signed a term sheet to in-license another long-acting injectable product from China.
Management Commentary
Srinivas Sadu, Executive Chairman, commented, “We are pleased to report another quarter of strong growth and execution.” He further added, “Our performance both in terms of revenue and profitability reflects the continued strength of our business fundamentals…” Ravi Mitra, Chief Financial Officer, stated, “Our performance reflects the benefits of strategic investments made over the past several years…”
Outlook
Gland Pharma remains confident in its strategy and long-term growth prospects, driven by increasing global demand for sterile injectables and its differentiated capabilities. The company reiterated its full-year revenue growth guidance of 15% on a constant currency basis.
Source: BSE
