Marksans Pharma Q2 record EBITDA rises 48.3% to Rs 214 crore

Marksans Pharma Limited reported record Q2FY27 operating revenue of Rs 940 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 214 crore, up 48.3% year on year, for the quarter ended September 30, 2026. EBITDA margin expanded 274 basis points to 22.8%, while profit after tax (PAT) rose 44.8% to Rs 144 crore.

How did Marksans Pharma perform in Q2FY27?

Marksans Pharma delivered Q2FY27 operating revenue of Rs 940.2 crore, up 30.5% from Rs 720.4 crore in Q2FY26 and 11.8% from Rs 840.8 crore in Q1FY27. Total income, which includes other income, rose 29.2% year on year to Rs 958.3 crore, while gross profit increased 33.6% to Rs 550.1 crore.

Marksans Pharma’s EBITDA rose to Rs 214.3 crore from Rs 144.5 crore a year earlier, exceeding revenue growth, and the margin increased to 22.8% from 20.1%. PAT reached Rs 143.5 crore versus Rs 99.1 crore in Q2FY26, while diluted earnings per share increased to Rs 3.11 from Rs 2.17. Sequentially, EBITDA was nearly unchanged from Rs 213 crore in Q1FY27, but PAT was 10.0% lower than Rs 159.4 crore.

What drove Marksans Pharma’s Q2FY27 revenue growth?

Marksans Pharma’s UK and Europe formulation business was the main growth contributor, with Q2FY27 revenue rising 64.9% year on year to Rs 404.6 crore and 13.7% sequentially from Rs 356 crore. The region represented 43.0% of operating revenue, close to the 44.8% contribution from US and North America, which generated Rs 420.9 crore.

Excluding QliniQ B.V. in the Netherlands, Marksans Pharma’s UK and Europe base business grew 48.6% year on year to Rs 365 crore in Q2FY27. QliniQ contributed about Rs 40 crore in the quarter and about Rs 84 crore in H1FY27. Management said new launches were supporting revenue and margin improvement in the UK market after a flat FY26.

Australia and New Zealand revenue rose 64.0% to Rs 100.6 crore, driven by the branded prescription, or Rx, portfolio under Nova Pharmaceuticals. In contrast, Rest of World revenue declined 47.0% year on year to Rs 14.1 crore and fell 29.6% sequentially, with Marksans Pharma attributing the movement to the West Asia crisis and affected Middle East shipments.

How did Marksans Pharma’s first-half profitability change?

Marksans Pharma reported H1FY27 operating revenue of Rs 1,781 crore, up 32.9% from Rs 1,340.4 crore in H1FY26. Gross profit increased 36.0% to Rs 1,047.4 crore, lifting gross margin by 137 basis points to 58.8% from 57.4% in the comparable first half.

H1FY27 EBITDA rose 74.7% to Rs 427.3 crore from Rs 244.6 crore, and EBITDA margin expanded 574 basis points to 24.0%. PAT increased 92.5% to Rs 302.9 crore from Rs 157.3 crore, while net margin rose to 16.6% from 11.5%. Management said H1FY27 PAT was already more than 70% of the full-year FY26 profit.

What did Marksans Pharma report on cash flow and capital?

Marksans Pharma generated net cash from operating activities of Rs 322 crore in H1FY27, 4.3 times the H1FY26 level. EBITDA-to-cash conversion was 75%, compared with 31% a year earlier. Capital expenditure was Rs 46 crore, resulting in free cash flow of Rs 275 crore during the six months ended September 30, 2026.

Cash balances stood at Rs 1,124 crore on September 30, 2026, while net cash was Rs 1,095 crore. Net cash increased by Rs 135 crore during H1FY27 after Rs 95 crore of acquisitions and Rs 41 crore of dividend payments. Research and development spending was Rs 23.9 crore in Q2FY27, equal to 2.5% of consolidated revenue.

Marksans Pharma’s working-capital cycle improved to about 122 days in Q2FY27 from about 132 days in Q1FY27. The H1FY27 cycle was about 128 days, compared with about 138 days in FY26. Trailing 12-month return on capital employed was 24.7% in September 2026 versus 18.7% in September 2025, and return on equity was 18.6% versus 13.6%.

What is Marksans Pharma’s disclosed outlook for H2FY27?

Marksans Pharma said its US and North America order book remained strong despite a softer US consumer environment, supporting management’s outlook for H2FY27. The region produced its highest quarterly revenue of Rs 420.9 crore in Q2FY27, up 8.7% year on year and 11.6% sequentially, and management said Rx portfolio price erosion remained in single digits.

Management said its focus remains on profitable organic growth and selective strategic acquisitions that add capabilities and market presence. The company entered H2FY27 with Rs 1,095 crore of net cash and had incurred Rs 95 crore of acquisitions in the first half. For Rest of World, management said stabilisation in geopolitical conditions could support a recovery after the Q2FY27 revenue decline to Rs 14.1 crore.

Marksans Pharma scheduled an earnings conference call for November 5, 2026, at 4:00 pm Indian Standard Time, where its leadership team is due to discuss the results and take questions. The company said a transcript would be available on its website, providing a scheduled forum for management commentary on H2FY27 order visibility, launches and regional conditions.

Conclusion

Marksans Pharma’s Q2FY27 figures show operating revenue rising 30.5% to Rs 940.2 crore while EBITDA increased faster, by 48.3% to Rs 214.3 crore. The first-half comparison was wider, with EBITDA up 74.7% to Rs 427.3 crore, PAT up 92.5% to Rs 302.9 crore and operating cash flow at Rs 322 crore.

The next disclosed event is Marksans Pharma’s November 5, 2026 earnings call at 4:00 pm Indian Standard Time. Management’s stated priorities are organic growth and selective acquisitions, while the disclosed matters to watch include US order-book support, UK new launches, QliniQ’s contribution and the potential recovery of Middle East shipments.