Glenmark Q2 Profit Jumps 72%: What’s Driving the Surge?

Glenmark Pharmaceuticals Ltd reported a 72% year-on-year rise in consolidated net profit for the quarter ended 30 September 2025, posting ₹610.43 crore versus ₹354.49 crore in the same quarter last year. Simultaneously, its revenue from operations soared to ₹6,046.87 crore. The company cited improved performance in North America and Europe as key drivers.

What does this mean for investors, and how sustainable is this momentum?

What Drove This Strong Profit and Revenue Growth?

The headline numbers reflect several significant factors. Revenue jumped from around ₹3,433.8 crore a year ago to ₹6,046.87 crore this quarter. Meanwhile, the pharma firm’s profit before tax (PBT) surged more than 104.7% to around ₹967.4 crore in Q2FY26.

Geographically, the boost largely came from:

• North America, where revenue substantially grew from around ₹740.5 crore last year to about ₹4,465.6 crore in Q2 FY26.
  
• Europe, where revenue rose about 8.5% year-on-year to approximately ₹746 crore from ₹687.4 crore.
  
• India business, however, faced a sharp drop: formulation sales in India fell by about 87.1%, from roughly ₹1,281.7 crore last year to around ₹165 crore this quarter, due to GST-related distributor stock adjustments.
  

Experts note that a one-time recognition of income under the company’s licensing deal with AbbVie for its investigational asset “ISB 2001” also played a part in lifting Q2 numbers.

So, if global markets drove much of the growth, how will Glenmark ensure this remains on track?

How Can Glenmark Maintain Momentum?

With a strong global performance this quarter, Glenmark now needs to translate that into sustained growth and improved margins. Here are the areas investors should focus on:

• Sustaining global growth: North America and Europe are clearly key markets now. Ensuring new launches, regulatory approvals, and market access in those regions will matter. If the global business slips, growth may slow.
  
• Margin trends and one-offs: EBITDA for this quarter stood at around ₹2,360 crore, and the margin expanded to about 39% from 17.5%. But part of this was aided by one-time items and licensing income. Investors should watch how margin holds when base effects fade.
  
• Domestic recovery: The Indian business’s sharp drop is a concern. The company expects normalization from Q3 onwards, as distributor inventories adjust and secondary sales recover.
  
• Pipeline and innovation: The AbbVie deal and Glenmark’s ambition to shift more toward branded and innovator products signal a strategy change. (The Economic Times)
  
• Costs and expenses: Total expenses rose year-on-year; controlling costs while scaling globally will be important to maintain profitability.
  

For investors building models, key questions include: Will global revenue growth hold? Will one-time gains fade? And will India's business recover meaningfully?

Potential Opportunities and Risks Ahead

Opportunities:

• If Glenmark can sustain high growth in North America and Europe, it may re-rate from being a generic player to a stronger specialty pharma/innovation player.
  

• Improved margins and global scale could make the company more attractive to institutional investors.
  

• Domestic recovery could provide a second growth engine once distributor issues are settled.
  

Risks:

• The sharp drop in Indian sales shows vulnerability to distributor model change and tax/GST shifts in the domestic business.
  
• One-time income (licensing deals) may not be repeatable; reliance on that could exaggerate short-term performance.
  
• Regulatory or approval delays in major markets like the US or Europe could slow growth.
  
• Global competition and pricing pressures remain a challenge for pharma firms.
  

Conclusion

Glenmark’s Q2 result, a ₹610 crore profit on revenue of ~₹6,047 crore, marks a sharp turnaround driven by strong global performance and licensing income. However, domestic business remains weak, and the question is whether this growth can be sustained organically. Will Glenmark convert this quarter’s momentum into long-term growth and margin improvement, or will challenges in India and the fading of one-time gains limit its trajectory?

References

Business Standard
Business Standard
Informist Media
NDTV Profit
The Economic Times