Event Participants
Executives
3
Glenn Saldanha (Chairman & Managing Director), Anurag Mantri (Executive Director & Global CFO), Utkarsh Gandhi (Senior General Manager, Investor Relations)
Analysts
8
Damayanti Kerai (HSBC), Devansh (Anubhuti), Harshit Dutt (Diamond Asia), Krish Mehta (Enam Holdings), Kunal Randeria (Axis Capital), Parth Sodha (Trinetra Asset Management), Saion Mukherjee (Nomura), Sucrit Patil (Eyesight Fintrade Private Limited), Tushar Manudhane (Motilal Oswal Financial Services)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Consolidated Revenue | ₹40,185 million | YoY growth of 23.1% vs ₹32,644 million in Q1 FY26; base business grew north of 18% excluding deferred income from ISB-2001 |
| India Formulation Sales | ₹14,321 million | YoY growth of 15.5%; secondary sales grew 18.1% in Q1 and 14.3% MAT June 2026 vs IPM growth of 12.2% and 10% respectively |
| India Consumer Care (GCC) | ₹1,558 million | YoY growth of 28%; CANDID brand grew upwards of 30% across variants |
| North America Revenue | ₹10,974 million | YoY growth of 41.1%; core business grew 19.8% net of deferred out-licensing income recognition for ISB-2001 |
| Europe Revenue | ₹7,472 million | YoY growth of 11.9%; branded portfolio recorded good growth, overall regional growth muted |
| Emerging Markets Revenue | ₹7,304 million | YoY growth of 27.7%; Russia secondary sales grew 12%+; LATAM and India regions recorded very strong growth |
| R&D Spend | ₹289 crores | Lower than guided range; management expects 7-8% of sales on full-year basis with quarterly phasing |
| Gross Debt | Zero | Management committed to maintaining gross debt zero position; cash maintained at ₹800-900 crores |
| Working Capital | Below 115 days | Management guiding to 115 days net working capital on full-year basis; currently below target |
Geographic & Segment Commentary
India: Glenmark significantly outperformed IPM with 18.1% Q1 secondary growth vs IPM's 12.2%. Ranked 13th with 2.37% market share; holds 11 brands in IPM top 300. Notably ranked 2nd in dermatology, 3rd in respiratory, and 4th in cardiac. Oncology launches Tevimbra and Brukinsa (partnered with BeiGene) crossed ₹100 crores sales in first 12 months. Nebzmart GFB Smartules (world's first nebulized fixed-dose triple therapy for COPD) trending towards ₹70-80 crores annual revenue in first year. Management guided to consistent 12-15% India growth, with volume contributing ~6-7%, new products ~3%, and value ~3-4%.
North America: Revenue grew 41.1% YoY, driven by respiratory launches including Fluticasone Propionate 44 mcg (generic to Flovent HFA) with CGT designation and 180-day exclusivity eligibility, and Fluticasone Propionate Nasal Spray OTC. Launched 9 products during quarter including multiple injectables. Portfolio consists of 225 generic products authorized for distribution with 53 applications pending FDA approval. Monroe facility received EIR with VAI classification in November; Fulvestrant injection relaunched from the facility. Respiratory launches are primary growth drivers for FY27 with 2-3 more anticipated in H2; differentiated injectables from Monroe expected to contribute from next year.
Europe: Revenue grew 11.9% YoY; branded portfolio (respiratory and dermatology) recorded good growth across markets. Management highlighted Europe was fastest-growing geography for 4 consecutive years, now transitioning to a higher branded mix. Branded products currently ~30% of European revenues, targeted to reach ~60% over 5 years. Ryaltris launched via Menarini partnership; Winlevi launched in UK, Nordic, CEE, and Spain markets. Management expects Europe to finish at high single-digit growth in FY27, returning to double-digits from next year as branded launches scale.
Emerging Markets: Revenue grew 27.7% YoY; Russia business recorded 12%+ secondary sales growth, Glenmark moved to 8th rank among dermatology companies in Russia. Strong growth in LATAM and APAC markets (Malaysia, Vietnam, Australia). Ryaltris continues as leading nasal spray for allergic rhinitis in most launched markets; Brazil launch planned in H2 FY27. Respiratory portfolio continues to outperform covered market across EM region.
Company-Specific & Strategic Commentary
Global Innovative Portfolio - Ryaltris: Marketing applications submitted in 90+ countries with commercialization in 57 markets; 10 additional market launches expected over next few quarters. US commercialization initiated during the quarter. Global secondary sales growth of upwards of 40% YoY. Recent launches include China and Thailand via partners Grand Pharma and Organon.
Partnership Innovation Portfolio: Aumolertinib (3rd-gen EGFR-TKI from Hansoh) - MA applications submitted in 13 countries, first commercial launch anticipated in H2 FY27. Trastuzumab Rezetecan (HER2-targeting ADC from Hengrui) - first wave of MA applications expected Q2 FY27; Phase 3 trial initiated in PROC in India. QiNHAYO (Envafolimab) - MA applications filed in 24 countries, first commercial launch expected FY28; early access programs initiated across 7 markets.
IGI Pipeline Progress: ISB-2001 (ABB-2001) - 160+ subjects dosed in TRIgnite Phase 1 study (42 dose escalation, 120+ dose expansion); safety/efficacy data consistent with ASCO 2025 presentation; combination study initiated. ISB-2301 (penta-specific immune cell activator) - IND submission expected later this year; management will wait for clinical data and proof-of-concept before partnering discussions. ISB-2302 and ISB-2501 in early preclinical development. Total IGI investment guided at $70 million including Phase 1 studies.
Oncology Capability Building: Management investing in oncology commercial capabilities in India and emerging markets, preparing launches of Aumolertinib, Trastuzumab Rezetecan, and Envafolimab. India field force of ~5,600 MRs with 300-400 additions annually; no significant oncology force expansion needed in India as sales force already exists.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Consolidated EBITDA Margin | 21-22% for FY27 | Management confident of achieving despite geopolitical cost pressures; new launches and growth in India/US expected to offset elevated costs |
| R&D Spend | 7-8% of sales for FY27 | Q1 spend was ₹289 crores, lower than run-rate due to phasing; includes IGI investment of $70 million over 2-3 years |
| India Growth | 12-15% consistently | Broad-based growth across therapeutic areas; volume growth ~6-7%, new products ~3%, value ~3-4% |
| North America Growth | Sustained growth over next few quarters | Driven by respiratory launches; Fluticasone 44 full quarter benefit in Q2; 2-3 additional respiratory approvals anticipated in H2 |
| Europe Growth | High single-digit for FY27, double-digit from FY28 | Transition to branded portfolio (respiratory/derm); branded mix from ~30% to ~60% over 5 years |
| Working Capital | 115 days net working capital for FY27 | Currently below target; initiatives include supply chain financing, MSME financing, global factoring |
| Gross Debt | Zero position maintained | Continued commitment to gross debt zero balance sheet |
| Ryaltris Launches | 10 additional markets over next few quarters | Includes Brazil in H2 FY27; China and Thailand recently launched via partners |
Risks & Constraints
| Risk | Context |
|---|---|
| Geopolitical Cost Pressures | Ongoing geopolitical situation impacting API costs, raw material prices, and logistics/freight costs. CFO noted at least 2 more quarters of elevated cost pressure expected. Management mitigating through product/geographical mix and working capital optimization. Full-year 21-22% margin guidance maintained. |
| Regulatory Risk Concentration | Management noted that shift towards branded and innovative portfolio de-risks from regulatory and geopolitical exposure. Base generic business remains exposed to US FDA compliance and approval timing risks. |
| US Respiratory Launch Timing | Approvals for Fluticasone 110 mcg and Ipratropium anticipated in H2; management "hopes" at least 2 of 3 pending respiratory products get approved. Delay would impact US growth trajectory. |
| Biocryst ISB-830 Development Uncertainty | Management has no visibility on Biocryst's further development plans for ISB-830; backup compound STAR-310 completed Phase 1. Potential impairment risk if Biocryst discontinues development. |
| Emerging Market Currency/Geopolitical Exposure | Russia business growing but subject to geopolitical and currency volatility; supply chain disruptions flagged by CFO. |
| Residual Litigation Exposure | Most MDL litigations settled/provided (state AGs, DPPs). Two smaller groups (EPP and one other) remain to settle. CFO noted all known litigations provided for from P&L perspective; cash flow implications spread over next two years. |
Q&A Highlights
R&D Spend and IGI Investment
- Question: What was R&D spend for the quarter and what incremental spend is anticipated with ISB-2301 moving to clinical trials? (Damayanti Kerai, HSBC)
- Answer: R&D spend was ~₹289 crores for the quarter; full-year guidance of 7-8% of sales maintained with quarterly phasing. IGI investments including 2301 Phase 1 are covered within the $70 million spend guidance over 2-3 years. (Anurag Mantri; Glenn Saldanha)
Europe Transformation and Branded Mix
- Question: What has changed in Europe and what is the branded contribution target? (Damayanti Kerai, HSBC)
- Answer: Europe was fastest-growing geography for 4 years; now transitioning to branded respiratory and derm portfolio. Branded products ~30% of European revenues today, targeting ~60% over next 5 years. Expected to finish high single-digit this year, returning to double-digit growth next year as launches scale. (Glenn Saldanha)
US Injectable Contribution Timing
- Question: Is the injectable portfolio meaningfully contributing to US numbers currently? (Damayanti Kerai, HSBC)
- Answer: Most are commodity injectables and will take time. US growth this year driven by respiratory launches (Fluticasone 44, nasal spray OTC, plus 2-3 more respiratory launches in H2). Differentiated injectables from Monroe will contribute from next year. (Glenn Saldanha)
Gross Margin Pressure and Geopolitical Impact
- Question: How should we understand RM cost impact on gross margins and how sustainable is it? (Harshit Dutt, Diamond Asia)
- Answer: Geopolitical situation impacting API and logistics costs. Mitigating through product and geographical mix. Pressure expected for at least 2 more quarters. On full-year basis, 21-22% margin guidance maintained as new launches and India growth offset elevated costs. (Anurag Mantri; Glenn Saldanha)
India Growth Sustainability and Concentration
- Question: Should IQVIA secondary data be a good indicator for modeling domestic business? Is there concentration risk in top brands? (Kunal Randeria, Axis Capital)
- Answer: India is a "fantastic business" with strong franchises across cardiology (15% growth), dermatology, chronic respiratory (25%+ growth). Tevimbra and Brukinsa crossed ₹100 crores in first year. No concentration risk view; strong brands like Telma, Ascoril, Candid are positives. Model 12-15% consistent growth. (Glenn Saldanha)
India Growth Split - Volume vs Value
- Question: How is India growth split between volume, value, and new products? (Krish Mehta, Enam Holdings)
- Answer: Bulk of growth is volume (~6-7%), new products contribute ~3%, value adds ~3-4%. Competitive intensity limits price increases. Growth drivers include GFB launch (₹70-80 crores annualized), Telma market share gains, semaglutide turning around diabetes franchise (₹20-25 crores annualized). Future launches include Aumolertinib and Trastuzumab Rezetecan in oncology. (Glenn Saldanha)
ISB-2301 Partnering Timing
- Question: Should we expect a deal for ISB-2301 this year or after Phase 1 data similar to ISB-2001? (Kunal Randeria, Axis Capital)
- Answer: ISB-2301 is a penta-specific asset targeting both NK cells and T cells - novel concept. Will wait for clinical data in humans and proof-of-concept before considering partnering. (Glenn Saldanha)
US Respiratory Approvals and Fluticasone 44
- Question: Where do we stand on 110 mcg approval and has Fluticasone 44 delivered full quarter benefit? (Tushar Manudhane, Motilal Oswal)
- Answer: Anticipate 2-3 respiratory approvals in H2 (110 mcg, fluticasone nasal spray Rx, Ipratropium); hope at least 2 of 3 come through. Fluticasone 44 gave half quarter benefit in Q1; full quarter benefit expected in Q2. (Glenn Saldanha)
Litigation Status and Provisions
- Question: Update on US litigations and whether additional provisions are needed? (Saion Mukherjee, Nomura)
- Answer: Settled with state AGs (provided in Q4) and DPPs. EPP and one more group remain. Most major litigations done; P&L provisions made for all known litigations. Cash flow implications spread over next two years. (Glenn Saldanha; Anurag Mantri)
Cash Position and AbbVie Milestones
- Question: What is the cash position and have any AbbVie milestone payments been received? (Saion Mukherjee, Nomura; Unidentified Analyst)
- Answer: Operating cash maintained at ₹800-900 crores; gross debt zero maintained. Only $700 million upfront received from AbbVie deal; no milestones received yet. Deferred income recognition relates to the upfront payment. (Anurag Mantri; Glenn Saldanha)
Key Takeaway
Glenmark delivered a strong Q1 FY27 with consolidated revenues of ₹40,185 million, up 23.1% YoY, driven by broad-based growth across North America (41.1%), Emerging Markets (27.7%), and India (15.5%). The base business grew 18%+ excluding ISB-2001 deferred income. India continues to outperform IPM with 18.1% secondary growth, led by oncology brands Tevimbra and Brukinsa (₹100+ crores in first year) and differentiated respiratory launches. North America growth is being driven by the respiratory franchise with Fluticasone 44 gaining traction and 2-3 additional respiratory approvals expected in H2. Management maintained FY27 margin guidance of 21-22% despite geopolitical cost pressures, citing mitigation through product and geographical mix. Strategic focus remains on scaling the branded portfolio in Europe (targeting 60% branded mix over 5 years), preparing oncology launches of Aumolertinib (H2 FY27) and Trastuzumab Rezetecan, and advancing the IGI pipeline with ISB-2301 IND expected this year. Watch items include geopolitical cost sustainability, US respiratory approval timing, and execution of the innovation portfolio across markets.
Transcript incomplete - detailed P&L line items (gross margins, EBITDA, net profit, EPS) not available in transcript for summary.