Gland Pharma Limited Q2 PAT rises 58% as margin hits 26%

Gland Pharma reported profit after tax of Rs 290.8 crore in Q2 FY27, up 58% year-on-year, as revenue rose 23% to Rs 1,833.6 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) margin increased to 26% from 21%. The quarter ended September 30, 2026.

Why did Gland Pharma's Q2 FY27 profit grow faster than revenue?

Gland Pharma's Q2 FY27 profit after tax grew faster than revenue because EBITDA increased 53% year-on-year to Rs 480.4 crore, against a 23% rise in revenue to Rs 1,833.6 crore. The company defines EBITDA as profit before tax plus finance expense plus depreciation and amortisation expense, excluding other income and foreign-exchange losses. Its EBITDA margin rose five percentage points from 21% in Q2 FY26 to 26%.

Gross profit increased 25% to Rs 1,163.8 crore in Q2 FY27 from Rs 933.1 crore a year earlier, while gross margin remained 63% in both periods. Profit before tax rose 52% to Rs 430.9 crore and its margin increased to 24% from 19%. Profit after tax margin was 16%, compared with 12% in Q2 FY26, with the company describing the increase as about 350 basis points.

How did Gland Pharma perform sequentially in Q2 FY27?

Gland Pharma's revenue increased 2% sequentially from Rs 1,800.3 crore in Q1 FY27 to Rs 1,833.6 crore in Q2 FY27, while profit after tax declined 8% from Rs 317 crore. EBITDA fell 3% quarter-on-quarter from Rs 493 crore, and EBITDA margin moved down one percentage point from 27% to 26%.

Adjusted EBITDA was Rs 503 crore in Q2 FY27, down 1% from Rs 510.2 crore in Q1 FY27, while its margin decreased from 28% to 27%. Gland Pharma calculates adjusted EBITDA by adding employee stock-option compensation expenses and a one-off goods and services tax provision to EBITDA. Gross profit declined 1% sequentially to Rs 1,163.8 crore and gross margin fell from 65% to 63%.

For 6M FY27, revenue reached Rs 3,633.9 crore, up 21% from Rs 2,992.5 crore in 6M FY26. EBITDA grew 43% to Rs 973.4 crore and profit after tax rose 52% to Rs 607.7 crore. The six-month EBITDA margin was 27%, compared with 23% a year earlier, while profit after tax margin increased to 17% from 13%.

Which businesses and markets drove Gland Pharma's revenue growth?

Gland Pharma's Contract Development and Manufacturing Operations, or CDMO, business was the faster-growing business segment, with Q2 FY27 revenue increasing 31% year-on-year to Rs 822.7 crore. CDMO contributed 45% of quarterly revenue, while Critical Injectables contributed 55% and grew 18% to Rs 1,010.9 crore. Critical Injectables includes business-to-business and business-to-consumer operations.

The two businesses had different sequential trends in Q2 FY27. CDMO revenue declined 8% from Rs 891.5 crore in Q1 FY27, whereas Critical Injectables revenue increased 11% from Rs 908.8 crore. In 6M FY27, CDMO revenue rose 25% to Rs 1,714.2 crore, while Critical Injectables grew 18% to Rs 1,919.7 crore.

The United States was Gland Pharma's largest disclosed market and recorded the highest disclosed market growth, with Q2 FY27 revenue of Rs 1,179.5 crore, up 42% year-on-year and 20% sequentially. Europe grew 30% year-on-year to Rs 371 crore, but Canada, Australia and New Zealand declined 18% to Rs 40 crore. India declined 42% to Rs 38.7 crore and rest-of-world revenue fell 21% to Rs 204.4 crore.

What product, pipeline and manufacturing developments did Gland Pharma report?

Gland Pharma spent Rs 107.7 crore on research and development in Q2 FY27, equal to 6% of consolidated revenue, compared with Rs 81.7 crore in Q2 FY26. The expenditure was focused mainly on complex-product development and filings. During the quarter, the company launched four molecules in the United States: Sugammadex, Erythromycin, Fluorouracil and Atropine sulfate.

Gland Pharma filed 11 abbreviated new drug applications, or ANDAs, and received 10 approvals in Q2 FY27. Its cumulative United States record reached 399 ANDA filings, comprising 350 approvals and 49 pending applications. Six in-house complex products have been launched, and three more are in line for approval, according to the company.

Gland Pharma has 15 products in co-development, including seven products under the 505(b)(2) pathway and eight ANDAs, with commercialization anticipated to begin in FY29. It has also filed 24 Ready-to-Use infusion-bag products, received approval for 18, and has another eight under development. The company estimates this Ready-to-Use bag portfolio addresses a United States market opportunity of about $640 million.

Technology transfers under Gland Pharma's CDMO partnership with a global pharmaceutical company were advancing according to plan, and additional technology-transfer dossiers were added to the arrangement. The company also secured manufacturing contracts for microspheres and respiratory products. Two facilities underwent U.S. Food and Drug Administration audits: VSEZ had zero observations, while the Dundigal audit concluded in October 2026 with four procedural observations.

Conclusion

Gland Pharma's Q2 FY27 result paired 23% revenue growth with a 58% increase in profit after tax as EBITDA rose 53% and margin increased to 26%. CDMO revenue grew 31% and United States revenue rose 42%, while Critical Injectables added 18%. These gains occurred alongside reported year-on-year declines in India, Canada, Australia and New Zealand, and rest-of-world revenue.

The next disclosed milestones are commercialization of the 15 co-development products, which Gland Pharma anticipates beginning in FY29, and approvals for three additional in-house complex products. Progress on the global CDMO technology transfers, the additional Ready-to-Use bag products under development, and follow-up after the Dundigal audit with four procedural observations are also matters to watch.