GSK Pharma Q2 profit rises 31% as revenue grows 21%

GlaxoSmithKline Pharmaceuticals Limited reported standalone profit of Rs 334.62 crore for the quarter ended 30 September 2026, up 31% from Rs 255 crore a year earlier, as revenue from operations rose 21% to Rs 1,179.91 crore and other income included Rs 42.09 crore of interest on an income-tax refund.

How did GSK Pharma perform in Q2 FY27?

GSK Pharma’s standalone revenue from operations increased to Rs 1,179.91 crore in the three months ended 30 September 2026 from Rs 973.63 crore in the corresponding quarter of 2025. Total income rose to Rs 1,252.68 crore from Rs 1,004.90 crore, reflecting both a Rs 206.28 crore increase in operating revenue and a rise in other income to Rs 72.77 crore from Rs 31.27 crore.

Profit before tax reached Rs 457.58 crore in the quarter ended 30 September 2026, compared with Rs 350.65 crore a year earlier, while profit after tax rose to Rs 334.62 crore from Rs 255 crore. Basic and diluted earnings per share, or EPS, after exceptional items were Rs 19.76, against Rs 15.06 a year earlier; GSK Pharma stated that quarterly EPS figures are not annualised.

What drove GSK Pharma’s quarterly profit growth?

GSK Pharma reported a Rs 106.93 crore increase in profit before tax, while other income rose by Rs 41.50 crore to Rs 72.77 crore in the quarter ended 30 September 2026. The company specifically disclosed that Rs 42.09 crore of other income was interest on an income-tax refund, making it an identified component of quarterly non-operating income.

Total expenses were Rs 795.10 crore in the September 2026 quarter, up from Rs 656.89 crore in the September 2025 quarter, while total income increased by Rs 247.78 crore. Purchases of stock-in-trade rose to Rs 279.04 crore from Rs 232.71 crore, employee-benefit expense increased to Rs 170.19 crore from Rs 138.05 crore, and other expenses rose to Rs 171.70 crore from Rs 150.36 crore.

Inventory movements also differed between the two quarters. GSK Pharma reported a Rs 41.76 crore expense from changes in inventories of finished goods, stock-in-trade and work-in-progress in the September 2026 quarter, compared with Rs 10.76 crore a year earlier. Finance costs were Rs 49 lakh, compared with Rs 51 lakh, while depreciation and amortisation were Rs 15.02 crore, down from Rs 17.43 crore.

How did GSK Pharma’s first-half results compare with last year?

GSK Pharma reported standalone revenue from operations of Rs 2,104.33 crore for the six months ended 30 September 2026, compared with Rs 1,778.46 crore in the corresponding six months of 2025. Profit after tax for the first half rose to Rs 587.95 crore from Rs 459.70 crore, while profit before tax increased to Rs 795.56 crore from Rs 629.22 crore.

Other income for the six-month period was Rs 134.40 crore, compared with Rs 75.03 crore a year earlier. Alongside Rs 42.09 crore of interest on the income-tax refund, GSK Pharma said first-half other income included Rs 18 crore of dividend from wholly owned subsidiary Biddle Sawyer Limited.

The first-half tax expense was Rs 207.61 crore, comprising current tax of Rs 202.62 crore and deferred tax of Rs 4.99 crore. In the comparable first half, tax expense was Rs 169.52 crore, including Rs 169.06 crore of current tax and Rs 46 lakh of deferred tax, against profit before tax of Rs 629.22 crore.

What changed in GSK Pharma’s standalone balance sheet and cash?

GSK Pharma’s standalone total assets were Rs 3,936.29 crore at 30 September 2026, down from Rs 4,274.91 crore at 31 March 2026. Current investments increased to Rs 1,524.01 crore from Rs 1,390.96 crore, whereas cash and cash equivalents declined to Rs 650.19 crore from Rs 1,065.82 crore and bank balances other than cash equivalents declined to Rs 43.77 crore from Rs 288.97 crore.

Inventory stood at Rs 513.33 crore at 30 September 2026, compared with Rs 430.35 crore at 31 March 2026, while trade receivables increased to Rs 339.41 crore from Rs 273.11 crore. Total equity declined to Rs 1,869.69 crore from Rs 2,241.18 crore, with other equity falling to Rs 1,700.28 crore from Rs 2,071.77 crore; equity share capital remained Rs 169.41 crore.

Net cash generated from operating activities in the six months ended 30 September 2026 was Rs 329.10 crore, compared with Rs 486.96 crore in the prior-year period. The cash-flow statement records Rs 969.93 crore of dividend paid to shareholders in the 2026 period, versus Rs 812.85 crore in the previous period, and reports cash and cash equivalents of Rs 650.19 crore at period end.

Does GSK Pharma report results by business segment?

GSK Pharma reports only one reportable segment, Pharmaceuticals, so it did not provide separate revenue, profit or asset disclosures by product category or operating division. The Rs 1,179.91 crore standalone quarterly revenue and Rs 334.62 crore standalone profit after tax therefore relate to its single reported Pharmaceuticals segment.

The standalone results for the quarter and six months ended 30 September 2026 were unaudited and underwent a limited review by the statutory auditors. The Audit Committee and Board approved the results on 3 November 2026, the same date GSK Pharma disclosed the appointment of Sandeep Seth as Head of Ethics & Compliance.

Conclusion

The September-quarter results show profit after tax growing faster than revenue from operations, alongside higher other income and an identified Rs 42.09 crore income-tax refund interest receipt. For the first half ended 30 September 2026, GSK Pharma’s revenue reached Rs 2,104.33 crore and profit after tax was Rs 587.95 crore, while operating cash generation was lower than in the prior-year period.

The next disclosed event to watch is GSK Pharma’s forthcoming annual general meeting, where members will consider Walker Chandiok & Co LLP’s appointment as statutory auditor for a five-year term beginning in financial year 2027-28 and continuing through financial year 2031-32.