Glenmark Q2 revenue falls 30% as first-half cash turns negative

Glenmark Pharmaceuticals Limited reported consolidated revenue from operations of Rs 4,247.33 crore for the quarter ended September 30, 2026, down 29.8% year on year, while Glenmark used Rs 203.32 crore in operating activities during the first half. A Rs 1,800.12 crore working-capital outflow reversed the prior-year operating cash inflow.

Why did Glenmark’s quarterly revenue decline by 30%?

Glenmark’s consolidated revenue from operations fell because net sales declined to Rs 4,157.09 crore in the quarter ended September 30, 2026, from Rs 6,003.79 crore a year earlier. Other operating income increased to Rs 90.24 crore from Rs 43.08 crore, but this rise did not offset the Rs 1,846.70 crore fall in net sales.

The year-on-year decline contrasted with the preceding quarter, when revenue from operations was Rs 4,018.48 crore for the quarter ended June 30, 2026. Total income rose sequentially to Rs 4,249.87 crore from Rs 4,084.25 crore, as other income declined to Rs 2.54 crore from Rs 65.76 crore while revenue increased.

The filing identifies Pharmaceuticals as Glenmark’s only reportable segment, comprising linked generics and active pharmaceutical ingredient operations. It therefore does not provide a regional, product-category or customer-level explanation for the Rs 1,799.54 crore year-on-year reduction in quarterly revenue from operations.

How did Glenmark’s September-quarter profit change?

Glenmark’s profit attributable to owners fell to Rs 263.78 crore in the September 2026 quarter from Rs 610.35 crore in the year-earlier period and Rs 482.92 crore in the June 2026 quarter. Basic earnings per share, or EPS, were Rs 9.35, against Rs 21.62 a year earlier and Rs 17.11 in the immediately preceding quarter.

Profit before exceptional items and tax declined to Rs 622.16 crore from Rs 2,352.52 crore, a larger percentage fall than the 29.8% reduction in revenue from operations. Total expenses decreased to Rs 3,627.71 crore from Rs 3,894.98 crore, although depreciation, amortisation and impairment expense rose to Rs 180.42 crore from Rs 141.20 crore.

Employee benefits expense was Rs 1,027.64 crore in the September 2026 quarter, compared with Rs 1,086.26 crore a year earlier, while finance costs declined to Rs 63.77 crore from Rs 66.46 crore. Profit before tax was Rs 338.29 crore, compared with Rs 967.40 crore in the September 2025 quarter, after exceptional items of Rs 283.88 crore.

Glenmark said the September 2026 exceptional item included a USD 15 million settlement by Glenmark Pharmaceuticals Inc., USA with Humana, Inc., along with underlying legal costs, one-time regulatory costs and other costs. The company said its US subsidiary denied the allegations, and that the settlement was not based on an admission of liability or illegality.

What caused Glenmark’s first-half operating cash outflow?

Glenmark used Rs 203.32 crore in operating activities during the half year ended September 30, 2026, compared with cash generated of Rs 2,835.57 crore in the corresponding 2025 half year. Operating profit before working-capital changes was Rs 1,635.98 crore, down from Rs 3,079.28 crore in the prior-year period.

The main driver was a Rs 1,800.12 crore net outflow from changes in operating assets and liabilities, compared with a Rs 171.91 crore outflow a year earlier. This working-capital movement more than offset the operating profit before such changes, while net income taxes paid were Rs 39.18 crore.

Trade receivables absorbed Rs 567.62 crore, inventories absorbed Rs 297.20 crore and other assets absorbed Rs 515.08 crore in the 2026 half year. Trade payables and other liabilities reduced cash by Rs 420.23 crore, compared with a Rs 1,744.17 crore cash inflow from that line in the half year ended September 30, 2025.

How did Glenmark finance its first-half cash movements?

Glenmark generated Rs 601.95 crore from financing activities in the half year ended September 30, 2026, compared with a Rs 1,490.42 crore financing outflow in the previous corresponding period. Net proceeds from short-term borrowings were Rs 858.68 crore, whereas the prior-year half recorded net short-term borrowing repayments of Rs 1,335.08 crore.

The borrowing inflow was partly offset by Rs 100.29 crore of interest paid, Rs 69.11 crore of lease principal payments, Rs 17.43 crore of interest on lease liabilities and Rs 71.34 crore of dividends paid. Glenmark also raised Rs 1.43 crore through the issue of equity shares during the half year.

Investing activities used Rs 326.36 crore, including Rs 375.16 crore spent on property, plant, equipment and intangible assets. That capital expenditure was lower than Rs 500.29 crore in the half year ended September 30, 2025, while proceeds from sales of property, plant and equipment rose to Rs 8.13 crore from Rs 2.58 crore.

Cash and cash equivalents increased to Rs 1,289.93 crore at September 30, 2026 from Rs 1,174.71 crore at March 31, 2026, aided by a Rs 42.95 crore exchange-rate effect. Consolidated current borrowings stood at Rs 866.54 crore at September 30, up from Rs 107.22 crore at March 31, while non-current borrowings were not separately reported in the balance-sheet table.

What do Glenmark’s half-year results show?

Glenmark’s revenue from operations for the half year ended September 30, 2026 was Rs 8,265.81 crore, down 11.2% from Rs 9,311.31 crore in the corresponding 2025 period. Total income declined to Rs 8,334.12 crore from Rs 9,538.38 crore, while total expenses increased to Rs 7,068.56 crore from Rs 6,767.05 crore.

Despite the revenue decline, profit attributable to owners increased to Rs 746.71 crore from Rs 657.22 crore. The comparison includes exceptional items of Rs 283.88 crore in the 2026 half year, below Rs 1,708.35 crore in the prior-year half, which affected profit before tax in both periods.

Depreciation, amortisation and impairment expense increased to Rs 353.59 crore from Rs 271.13 crore over the two half-year periods. Finance costs fell to Rs 117.76 crore from Rs 124.69 crore, while profit before exceptional items and tax decreased to Rs 1,265.55 crore from Rs 2,771.33 crore.

Conclusion

Glenmark’s September 2026 results show that consolidated quarterly revenue and profit before exceptional items declined year on year, while first-half operating cash flow shifted to a Rs 203.32 crore outflow. The cash reversal reflected a Rs 1,800.12 crore working-capital outflow, partly offset at the group level by Rs 858.68 crore of net short-term borrowing proceeds.

The next results will show whether receivables, inventories, other assets, and payables reverse their first-half cash effects. Glenmark also disclosed that litigation continues with other parties following settlements recognised in earlier periods, leaving the timing and cost of further resolution unresolved.