Glenmark Pharmaceuticals Q1 Results: Profit Nearly Doubles, Beats Estimates

Glenmark Pharmaceuticals Ltd. posted a 97% year-on-year jump in net profit for the first quarter of the financial year ending March 2025, beating analysts' estimates.

The pharmaceutical company reported a net profit of Rs 340.2 crore for the quarter ended June, compared to Rs 173.1 crore in the same quarter of the previous fiscal year, according to an stock exchange notification on Wednesday. This was above the Rs 313-crore estimate by analysts tracked by Bloomberg.

Revenue increased 6.9% year-on-year for the three months ended June, reaching Rs 3,244.2 crore in comparison to Rs 3,036.7 crore in the same period in the fiscal ended March 2024. Analysts had projected revenue of Rs 3,295 crore.

Operating income rose 34% year-on-year to Rs 588.2 crore. The Ebitda margin expanded to 18.1% from 14.4% in the same period the previous year. Analyst estimates for Ebitda and Ebitda margin tracked by Bloomberg were Rs 599 crore and 18.2%, respectively.

Shares of the company closed 0.89% lower at Rs 1,491.2 per share on the NSE, compared to a 0.02% advance in the benchmark Nifty. The stock has risen 74.26% on a year-to-date basis and 86.95% over the past 12 months.

Sales from the formulation business in India for Q1 FY25 was at Rs 1,196.2 crore as against Rs 1,069.3 crore in the corresponding quarter last year, recording a growth of 11.9%.

The North America business registered revenue of Rs 780.8 crore for the first quarter of FY25 as against revenue of Rs 7,55.7 crore for the fourth quarter of FY24. This translates to a quarter-on-quarter growth of 3.3%.

Glenmark’s Europe operations' revenue for the first quarter of FY25 was at Rs 695.7 crore as against Rs 573.2 crore in Q1 FY24, recording a year-on-year growth of 21.4%.

For the first quarter of FY25, revenue from the ROW region was Rs 570.8 crore as against Rs 552.8 crore for the corresponding quarter last year, recording a year-on-year growth of 3.3%

"Our strong start to the new financial year reflects our robust revenue growth across key regions and solid operational performance, leading to a significantly improved margin profile," Glenn Saldanha, chairperson of Glenmark Pharmaceuticals, said. "Our India business continues to excel, outpacing the Indian Pharma Market with our expertise in our core therapeutic areas, while Europe build on its FY24 success with further growth in the branded segment."

Ryaltris remains a major global growth driver, achieving high double-digit market shares in multiple regions, he said. "As we look ahead, we are committed to launching innovative products, including Envafolimab and Winlevi, and are confident of our trajectory towards meeting our FY25 objectives."