Gland Pharma Q2 PAT rises 58% as EBITDA margin reaches 26%

Gland Pharma Limited reported Q2 FY27 revenue from operations of Rs 1,833.6 crore, up 23% year on year, while profit after tax rose 58% to Rs 290.8 crore and EBITDA margin reached 26%, five percentage points above Q2 FY26, according to its 6 November 2026 investor presentation.

How did Gland Pharma perform in Q2 FY27?

Gland Pharma’s Q2 FY27 profit grew faster than revenue, with profit after tax (PAT) increasing to Rs 290.8 crore from Rs 183.7 crore in Q2 FY26, while revenue from operations rose to Rs 1,833.6 crore from Rs 1,486.9 crore. Total income increased 21% year on year to Rs 1,902.6 crore, including other income of Rs 69 crore, which was 18% below the prior-year quarter.

Reported earnings before interest, tax, depreciation and amortisation (EBITDA) increased 53% to Rs 480.4 crore from Rs 313.9 crore, compared with 23% revenue growth. Profit before tax (PBT) rose 52% to Rs 430.9 crore, while PAT margin increased four percentage points to 16% from 12%. The reported figures show that quarterly profit growth exceeded the increase in sales.

Gland Pharma also recorded 2% sequential revenue growth from Rs 1,800.3 crore in Q1 FY27. However, EBITDA declined 3% from Rs 493 crore and PAT declined 8% from Rs 317 crore in the preceding quarter. Q2 FY27 PAT margin of 16% was above 12% a year earlier but below the 18% reported in Q1 FY27.

What explains Gland Pharma’s higher EBITDA margin?

Gland Pharma’s reported EBITDA margin was 26% in Q2 FY27, five percentage points above Q2 FY26’s 21%, while gross profit margin remained 63% in both quarters. Gross profit nevertheless rose 25% to Rs 1,163.8 crore from Rs 933.1 crore, outpacing the 23% increase in revenue. The presentation reports the margin movement but does not identify the operating cost items behind the year-on-year EBITDA-margin expansion.

The sequential comparison was different, as Q2 FY27 gross profit margin of 63% was below 65% in Q1 FY27 and EBITDA margin of 26% was below 27%. Gland Pharma defines EBITDA as PBT plus finance expense plus depreciation and amortisation expense, excluding other income and foreign-exchange losses. That definition excludes the Rs 69 crore of other income reported in Q2 FY27 from this operating measure.

Gland Pharma reported adjusted EBITDA of Rs 503 crore in Q2 FY27, 50% above Rs 335.5 crore in Q2 FY26, and adjusted EBITDA margin increased to 27% from 23%. The company defines adjusted EBITDA as EBITDA plus employee stock-option compensation expense and a one-off goods and services tax-related provision. Adjusted EBITDA was Rs 510.2 crore in Q1 FY27, a 1% sequential decline despite 2% revenue growth.

How did Gland Pharma’s first-half FY27 results compare?

Gland Pharma reported six-month FY27 revenue from operations of Rs 3,633.9 crore, up 21% from Rs 2,992.5 crore in six-month FY26. EBITDA rose 43% to Rs 973.4 crore from Rs 681.7 crore, while PAT increased 52% to Rs 607.7 crore from Rs 399.2 crore. The first-half results therefore retained the Q2 pattern of earnings increasing faster than revenue.

Gland Pharma’s first-half EBITDA margin rose to 27% from 23%, while adjusted EBITDA margin increased to 28% from 24%. PAT margin increased to 17% from 13%, and PBT margin rose to 24% from 20%. Gross profit margin remained 64% in both six-month periods, even as gross profit increased by Rs 422.2 crore.

How much did Gland Pharma spend on research and development?

Gland Pharma spent Rs 107.7 crore on research and development (R&D) in Q2 FY27, equal to 6% of consolidated revenue. That was Rs 26 crore above the Rs 81.7 crore spent in Q2 FY26, when R&D represented 5% of consolidated revenue. It was also higher than Rs 77.2 crore in Q1 FY27, when R&D accounted for 4% of consolidated revenue.

For six-month FY27, Gland Pharma’s R&D expenditure was Rs 184.9 crore, compared with Rs 148.1 crore in six-month FY26. Despite the Rs 36.8 crore increase, R&D remained 5% of consolidated revenue in both half-year periods. The Q2 ratio of 6% was consequently above both the first-half ratio and the corresponding quarterly ratio a year earlier.

The R&D data accompany Q2 FY27 gross profit of Rs 1,163.8 crore and adjusted EBITDA of Rs 503 crore. The presentation does not provide a programme-level split of the Rs 107.7 crore quarterly expense, identify individual products, or quantify expected revenue or profit contributions from R&D spending.

Conclusion

Gland Pharma’s Q2 FY27 results combined 23% revenue growth with 58% PAT growth, as EBITDA margin rose to 26% from 21% and PAT margin reached 16% from 12%. First-half FY27 followed the same direction: revenue increased 21%, EBITDA rose 43%, PAT grew 52%, and EBITDA margin reached 27%.

The next disclosures to watch are whether Gland Pharma’s quarterly margins recover from the sequential decline from Q1 FY27, when EBITDA margin was 27% and PAT margin was 18%. The presentation also does not identify the operating cost movements behind the five-percentage-point year-on-year EBITDA-margin increase or give a timetable for the growth and expansion plans noted in its forward-looking statement.