Marksans Pharma reported a 10.6% year-on-year growth in Q3 FY26 operating revenue, reaching an all-time high of INR 754 crores. The company achieved a gross margin of 58.1% and an EBITDA margin of 21.3%, driven by operating leverage and softer raw material costs. Management remains optimistic, referencing a strong $220 million+ order book in the U.S. and strategic expansions in Europe and Canada for future growth.
Marksans Pharma Q3 FY26 Performance Overview
Marksans Pharma held its Earnings Conference Call on February 06, 2026, following the announcement of its Q3 and 9M FY26 unaudited financial results. Management highlighted a steady and resilient performance marked by healthy revenue growth and sustained margin expansion.
Key Financial Highlights (Q3 FY26)
- Operating Revenue: Grew by 10.6% year-on-year to INR 754.4 crores (an all-time high for the quarter).
- Gross Profit: Grew by 14.3% year-on-year to INR 438.2 crores.
- Gross Margin: Expanded to 58.1% from 56.2% last year, attributed to easing raw material prices and favorable product mix.
- EBITDA: Stood at INR 160.7 crores, up 23.2% year-on-year.
- EBITDA Margin: Expanded by 217 basis points over Q3 FY25 to reach 21.3%.
- Profit After Tax: Increased by 8.2% year-on-year to INR 113.7 crores.
- EPS for the quarter was INR 2.5.
9M FY26 Performance Summary
For the nine-month period ending December 31, 2025, operating revenue was INR 2,094.8 crores (9.4% growth). The EBITDA margin was 19.4%, reflecting a weaker Q1 performance, though profitability improved significantly in Q2 and Q3. Cash generated from operations totaled INR 263.2 crores, and the company remained debt-free with a cash balance of INR 824.2 crores.
Geographical Segment Performance
Management provided a breakdown of the revenue drivers:
- U.S. and North America: Revenue reached INR 412.4 crores, an increase of 16.9% YoY, driven by volumes and seasonal demand. The U.S. order book stands at over $220 million.
- U.K. and EU: Revenue was INR 258.2 crores, flat YoY, as pricing pressure persisted, though the business is stabilizing through new launches.
- Australia and New Zealand: Revenue grew 30.1% YoY to INR 61.4 crores.
Strategic Growth Drivers and Outlook
Mark Saldanha, Founder, Chairman, and Managing Director, outlined key strategic focuses:
- Pipeline Execution: Strong execution in the U.K. with MHRA authorizations received for multiple products. In the U.S., USFDA approval was secured for amide hydrochloride, boosting OTC focus areas like pain and allergy.
- Global Expansion: The company incorporated new subsidiaries in the quarter, including Marksans Europe Limited in Ireland and Marksans Canada Inc., signaling a measured expansion into regulated markets. Europe is viewed as a major cluster offering significant potential over the next 3 to 5 years.
- Future Milestones: The company is working towards an INR 4,000 crores revenue milestone, achievable within the next 2 to 3 years (FY28 or FY29), based on the current portfolio.
Q&A Insights: Margins and Costs
During the Q&A, management addressed specific concerns:
Regarding employee costs, CFO Jitendra Sharma clarified that the recent increase included an impact of INR 2.8 crores related to the new labor code accounting for gratuity and new pay. He expects the employee cost percentage to sales to streamline by the second quarter of the next financial year.
On R&D, spending increased to nearly 3% of sales, primarily due to aggressive filings in the U.K. market and development for the European portfolio. This spend level (2.5% to 3%) is expected to continue for the next year.
The impact of the U.S. trade deal was noted as beneficial, removing geopolitical uncertainty for customers, which is expected to normalize growth rates previously impacted by volatility in early 2025.
Source: BSE
