Analyzing...
Ladies and gentlemen, good day, and welcome to Gland Pharma Limited Q1 FY '26 Earnings
Gland Pharma, I welcome you to our earnings call for the first quarter of FY '26. I will begin by
term.
GLAND Ladies and gentlemen, good day, and welcome to Gland Pharma Limited QI FY '26 Earnings Gland Pharma, I welcome you to our earnings call for the first quarter of FY '26. 1 will begin by term. GLAND Ladies and gentlemen, good day, and welcome to Gland Pharma Limited QI FY '26 Earnings Gland Pharma, I welcome you to our earnings call for the first quarter of FY '26. 1 will begin by term.
ophthalmics, PFS and GLP-1s.
• approved alongside 1,761 global registrations in the quarter. During Q1 FY '26, we • •
the steady progress of our turnaround plan. I'm pleased to report that as of Q1 FY '26, Cenexi
GLAND ophthalmics, PFS and GLP-ls. • approved alongside 1,761 global registrations in the quarter. During QI FY '26, we • • the steady progress of our turnaround plan. I'm pleased to report that as of QI FY '26, Cenexi GLAND ophthalmics, PFS and GLP-ls. • approved alongside 1,761 global registrations in the quarter. During QI FY '26, we • • the steady progress of our turnaround plan. I'm pleased to report that as of QI FY '26, Cenexi
you.
15,056 million, showing a growth of 7% over last year's Q1. Our consolidated EBITDA touched
• during Q1 FY '26. This includes important products like Epinephrine, Acetaminophen • • The Rest of the World market contributed to INR 2,978 million in Q1 FY '26, • Lastly, the Indian market generated INR 594 million, accounting for 4% of our Q1 FY
Moving on to the R&D, our total expenditure for Q1 FY '26 was INR460 million, which is 4.4%
reached breakeven this quarter. In Q1 FY '26, Cenexi’s revenue was EUR 48 million, and gross GLAND you. 15,056 million, showing a growth of 7% over last year's QI. Our consolidated EBITDA touched • during QI FY '26. This includes important products like Epinephrine, Acetaminophen • • The Rest of the World market contributed to INR 2,978 million in QI FY '26, • Lastly, the Indian market generated INR 594 million, accounting for 4% of our QI FY Moving on to the R&D, our total expenditure for QI FY '26 was INR460 million, which is 4.4% reached breakeven this quarter. In QI FY '26, Cenexi’s revenue was EUR 48 million, and gross GLAND you. 15,056 million, showing a growth of 7% over last year's QI. Our consolidated EBITDA touched • during QI FY '26. This includes important products like Epinephrine, Acetaminophen • • The Rest of the World market contributed to INR 2,978 million in QI FY '26, • Lastly, the Indian market generated INR 594 million, accounting for 4% of our QI FY Moving on to the R&D, our total expenditure for QI FY '26 was INR460 million, which is 4.4% reached breakeven this quarter. In QI FY '26, Cenexi’s revenue was EUR 48 million, and gross
We are confident Cenexi's performance will continue to improve. Alain will provide a detailed
Our results this quarter also reflected the benefits of price increases negotiated last year with our
GLAND We are confident Cenexi's performance will continue to improve. Alam will provide a detailed Our results this quarter also reflected the benefits of price increases negotiated last year with our GLAND We are confident Cenexi's performance will continue to improve. Alam will provide a detailed Our results this quarter also reflected the benefits of price increases negotiated last year with our
The business from Braine-l'Alleud and Osny remained robust and delivered a solid performance this quarter. As updated previously, our two new lyophilizers are being installed at Braine- l'Alleud, and their qualifications will be concluded by the end of the calendar year 2025.
In parallel, engineering studies for the installation of a new vial line under isolator with automatic loading and unloading of the lyophilizers are progressing well. The long-term prospects for this business remain robust with high-value projects in our tech transfer program.
Besides, our pipeline of new leads in Braine-l'Alleud is growing fast with new projects under study in hormones, blood derivates, biologics and, of course, cytotoxics.
Q1 FY '26 has marked the beginning of a meaningful turnaround. We remain firmly focused on our previous commitment, that is to deliver a positive EBITDA in Q3 FY ‘26 after a to-be- expected low Q2 FY ‘26 due to our summer shutdown.
Thank you for your time. I will now turn the call over to Ravi to discuss our financial performance. Ravi, over to you.
Thank you, Alain. Good evening and thank you for being with us on the call today as we review our financial performance for the first quarter of the fiscal year 2026. We are pleased with the steady growth in consolidated profitability year-on-year, driven by improvement in our gross margin, which has reflected a strong positive momentum, improving to 65% from 60% in Q1 FY '25.
This enhancement was largely on account of higher contribution from favorable raw material costs for several key products at base business. Excluding Cenexi, our base business gross margin stood at 59% in Q1 FY '26, up from 53% in the same quarter of previous year. The consolidated EBITDA margin also improved significantly, reaching 24% from 19% in the corresponding period of FY '25. This uplift was driven primarily by a strong gross margin and various cost controls initiatives across our base business.
At Cenexi, EBITDA breakeven was achieved, supported by higher volumes alongside stable operating expenses. Excluding Cenexi, our base business delivered an EBITDA margin of 35% for Q1 FY '26 compared to 29% in the same period last year. It is worth mentioning that the company launched ESOP 2025 scheme in May 2025 to motivate key employees and also to align with the interest of investors. On ESOP grant of 8,43,685 options, a non-cash expense amounting to INR 59.48 million was included in this quarter's employee benefit cost. Adjusted for this expense, our base business adjusted EBITDA stood at INR 3,651 million.
Our net profit for the quarter reported a strong 50% year-on-year growth to INR 2,155 million compared to Q1 FY '25. During the quarter, we achieved a PAT margin of 14%, compared to 10% in Q1 FY '25. Other income, primarily consisting of interest earned from bank deposits and foreign exchange gains amounted to INR 575 million in Q1 FY '26. This is higher than the INR 440 million reported in Q4 FY '25.
Our R&D expense for the quarter were INR 460 million, declined from INR 489 million in the same period last fiscal year, largely due to timing of the expenses, while all our R&D programs GLAND The business from Braine-l'Alleud and Osny remained robust and delivered a solid performance this quarter. As updated previously, our two new lyophilizers are being installed at Braine- l'Alleud, and their qualifications will be concluded by the end of the calendar year 2025.
In parallel, engineering studies for the installation of a new vial line under isolator with automatic loading and unloading of the lyophilizers are progressing well. The long-term prospects for this business remain robust with high-value projects in our tech transfer program.
Besides, our pipeline of new leads in Braine-l'Alleud is growing fast with new projects under study in hormones, blood derivates, biologies and, of course, cytotoxics.
QI FY '26 has marked the beginning of a meaningful turnaround. We remain firmly focused on our previous commitment, that is to deliver a positive EBITDA in Q3 FY ‘26 after a to-be- expected low Q2 FY ‘26 due to our summer shutdown.
Thank you for your time. I will now turn the call over to Ravi to discuss our financial performance. Ravi, over to you.
Thank you, Alain. Good evening and thank you for being with us on the call today as we review our financial performance for the first quarter of the fiscal year 2026. We are pleased with the steady growth in consolidated profitability year-on-year, driven by improvement in our gross margin, which has reflected a strong positive momentum, improving to 65% from 60% in QI FY '25.
This enhancement was largely on account of higher contribution from favorable raw material costs for several key products at base business. Excluding Cenexi, our base business gross margin stood at 59% in QI FY '26, up from 53% in the same quarter of previous year. The consolidated EBITDA margin also improved significantly, reaching 24% from 19% in the corresponding period of FY '25. This uplift was driven primarily by a strong gross margin and various cost controls initiatives across our base business.
At Cenexi, EBITDA breakeven was achieved, supported by higher volumes alongside stable operating expenses. Excluding Cenexi, our base business delivered an EBITDA margin of 35% for QI FY '26 compared to 29% in the same period last year. It is worth mentioning that the company launched ESOP 2025 scheme in May 2025 to motivate key employees and also to align with the interest of investors. On ESOP grant of 8,43,685 options, a non-cash expense amounting to INR 59.48 million was included in this quarter's employee benefit cost. Adjusted for this expense, our base business adjusted EBITDA stood at INR 3,651 million.
Our net profit for the quarter reported a strong 50% year-on-year growth to INR 2,155 million compared to QI FY '25. During the quarter, we achieved a PAT margin of 14%, compared to 10% in Ql FY '25. Other income, primarily consisting of interest earned from bank deposits and foreign exchange gains amounted to INR 575 million in Ql FY '26. This is higher than the INR 440 million reported in Q4 FY '25.
Our R&D expense for the quarter were INR 460 million, declined from INR 489 million in the same period last fiscal year, largely due to timing of the expenses, while all our R&D programs Page 6 of 17
3,145 million. Cash flow from operations during Q1 FY '26 was INR 2,620 million. Our average Yes. The milestone revenue is about 9%. And the profit share is 12%. '27. GLAND 3,145 million. Cash flow from operations during QI FY '26 was INR 2,620 million. Our average Yes. The milestone revenue is about 9%. And the profit share is f2%. '27. GLAND 3,145 million. Cash flow from operations during QI FY '26 was INR 2,620 million. Our average Yes. The milestone revenue is about 9%. And the profit share is f2%. '27.
what would drive -- you talked about the dry powder CMS. When does that start flowing GLAND what would drive — you talked about the dry powder CMS. When does that start flowing GLAND what would drive — you talked about the dry powder CMS. When does that start flowing
Okay. And sir, just lastly, considering 2Q sort of dip in profitability for Cenexi and then revising GLAND Okay. And sir, just lastly, considering 2Q sort of dip in profitability for Cenexi and then revising GLAND Okay. And sir, just lastly, considering 2Q sort of dip in profitability for Cenexi and then revising
cartridges. We are talking to four types of customers - Indian customers for global market, here to sell our capacity. The capacities are being lapped up. It will take some time for us to tell GLP-1s in India and global market.
So did I hear it correctly that the entire 140, that is the new 100 as well, will be ready by the end That's correct. 40 is already ready and another 100 by March to be commercialized -- ready for It is a fill and finish CDMO line. So, we are not developing our own Sema. It is a fill and finish GLAND cartridges. We are talking to four types of customers - Indian customers for global market, here to sell our capacity. The capacities are being lapped up. It will take some time for us to tell GLP-ls in India and global market.
So did I hear it correctly that the entire 140, that is the new 100 as well, will be ready by the end That's correct. 40 is already ready and another 100 by March to be commercialized — ready for It is a fill and finish CDMO line. So, we are not developing our own Serna. It is a fill and finish GLAND cartridges. We are talking to four types of customers - Indian customers for global market, here to sell our capacity. The capacities are being lapped up. It will take some time for us to tell GLP-ls in India and global market.
So did I hear it correctly that the entire 140, that is the new 100 as well, will be ready by the end That's correct. 40 is already ready and another 100 by March to be commercialized — ready for It is a fill and finish CDMO line. So, we are not developing our own Serna. It is a fill and finish
etcetera, is this fill and finish activity going to be of a significantly higher margin profile than the other fill and finish lines that you run? capacities for multi-dose cartridges and pen assembly, or these are largely vial filling capacities. GLAND etcetera, is this fill and finish activity going to be of a significantly higher margin profile than the other fill and finish lines that you ran? capacities for multi-dose cartridges and pen assembly, or these are largely vial filling capacities. GLAND etcetera, is this fill and finish activity going to be of a significantly higher margin profile than the other fill and finish lines that you ran? capacities for multi-dose cartridges and pen assembly, or these are largely vial filling capacities.
That started from July 1st. It's now been the collaboration started. The team is in place now So, this is more to do with pilot scale batches at the lab. So, it's not specific to product now -- So you have 140 million cartridge fill/finish capacity available for FY '27. And you mentioned also talking to not just the GLP-1s, but also some of the other molecules to see if we can fill up million pens and cartridges. So, what kind of a fill/finish pricing are you working with -- so GLAND That started from July 1st. It's now been the collaboration started. The team is in place now So, this is more to do with pilot scale batches at the lab. So, it's not specific to product now — So you have 140 million cartridge fill/fmish capacity available for FY '27. And you mentioned also talking to not just the GLP-ls, but also some of the other molecules to see if we can fill up million pens and cartridges. So, what kind of a fill/finish pricing are you working with — so GLAND That started from July 1st. It's now been the collaboration started. The team is in place now So, this is more to do with pilot scale batches at the lab. So, it's not specific to product now — So you have 140 million cartridge fill/fmish capacity available for FY '27. And you mentioned also talking to not just the GLP-ls, but also some of the other molecules to see if we can fill up million pens and cartridges. So, what kind of a fill/finish pricing are you working with — so
in certain markets. And likewise, Sema will also be launched in few markets. this quarterly, let's say, kind of a volatility. Sir, when do you think that the base business growth I just wanted to check on -- I think you received approval for generic Vyzulta latanoprostene that country. So, a lot of things happening tactically and strategically, but we have reasons to GLAND in certain markets. And likewise, Serna will also be launched in few markets. this quarterly, let's say, kind of a volatility. Sir, when do you think that the base business growth I just wanted to check on — I think you received approval for generic Vyzulta latanoprostene that countiy. So, a lot of things happening tactically and strategically, but we have reasons to GLAND in certain markets. And likewise, Serna will also be launched in few markets. this quarterly, let's say, kind of a volatility. Sir, when do you think that the base business growth I just wanted to check on — I think you received approval for generic Vyzulta latanoprostene that countiy. So, a lot of things happening tactically and strategically, but we have reasons to
So the order book is approximately around EUR 85 million to EUR 90 million still, although operating. So this will go up from this quarter's run rate Fontenay has done. Herouville, like Mr. GLAND So the order book is approximately around EUR 85 million to EUR 90 million still, although operating. So this will go up from this quarter's ran rate Fontenay has done. Herouville, like Mr. GLAND So the order book is approximately around EUR 85 million to EUR 90 million still, although operating. So this will go up from this quarter's ran rate Fontenay has done. Herouville, like Mr.
So at, let's say, 140 million cartridge capacity for the fill-finish part, how many pens can you So this current capacity of 40 million, what is the current capacity utilization in the last quarter?
So, on the cartridge, currently it's a very limited capacity utilization because Lira is the only one GLAND So at, let’s say, 140 million cartridge capacity for the fill-finish part, how many pens can you So this current capacity of 40 million, what is the current capacity utilization in the last quarter?
So, on the cartridge, currently it's a very limited capacity utilization because Lira is the only one GLAND So at, let’s say, 140 million cartridge capacity for the fill-finish part, how many pens can you So this current capacity of 40 million, what is the current capacity utilization in the last quarter?
So, on the cartridge, currently it's a very limited capacity utilization because Lira is the only one
happen. But as to the discussions we have, we have to -- we will pass on to the partners and they that approval will come the first quarter next year. That's when that business will start. But there's to? Yes. GLAND happen. But as to the discussions we have, we have to — we will pass on to the partners and they that approval will come the first quarter next year. That's when that business will start. But there's to? Yes. GLAND happen. But as to the discussions we have, we have to — we will pass on to the partners and they that approval will come the first quarter next year. That's when that business will start. But there's to? Yes.
This transcript is provided without express or implied warranties of any kind and should be read in conjunction with the accompanying materials published by the company. The information contained in the transcript is a textual representation of the company's event and while efforts are made to provide accurate transcription, there may be material errors, omissions, or inaccuracies in the reporting of the substance of the event. The transcript has been edited wherever required for clarity, correctness of data, or transcription error. The company takes no responsibility for such errors, although an effort has been GLAND This transcript is provided without express or implied warranties of any kind and should be read in conjunction with the accompanying materials published by the company. The information contained in the transcript is a textual representation of the company's event and while efforts are made to provide accurate transcription, there may be material errors, omissions, or inaccuracies in the reporting of the substance of the event. The transcript has been edited wherever required for clarity, correctness of data, or transcription error. The company takes no responsibility for such errors, although an effort has been GLAND This transcript is provided without express or implied warranties of any kind and should be read in conjunction with the accompanying materials published by the company. The information contained in the transcript is a textual representation of the company's event and while efforts are made to provide accurate transcription, there may be material errors, omissions, or inaccuracies in the reporting of the substance of the event. The transcript has been edited wherever required for clarity, correctness of data, or transcription error. The company takes no responsibility for such errors, although an effort has been