Gland Pharma Ltd Q2 FY27 Results Analysis: PAT Jumps 58%, Margin Expands 510 bps

Cofacto Research Published November 06, 2026 5 min read

Positive

Gland Pharma Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,833.60 Cr (+23.30% YoY) and PAT growth of +58.30% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	November 06, 2026
Revenue (Q2)	Rs. 1,833.60 Cr (+23.30% YoY)
PAT (Q2)	Rs. 290.80 Cr (+58.30% YoY)
EBITDA margin	26.20% (+510 bps YoY)
EPS (Q2)	Rs. 17.62 (+58.00% YoY)

Quarter Snapshot

Revenue grew 23.3% YoY led by the USA (+42.5%) and CDMO (+31%), with PAT up 58.3% and EBITDA margin up ~510 bps YoY to 26.2%. H1 delivery is running well ahead of the 12-13% CC revenue guide, but the 30% near-term margin target remains unmet and the tax-rate step-up drove PAT down 8.3% QoQ. Watch the margin bridge via Cenexi, the Dundigal 483 observations, and the Fosun overhang.

Q2 FY27 Expectations vs Results

Driver	Expected before results	What happened	Verdict
US demand	"The US engine entered Q2 with accelerating momentum"	USA +42.5% YoY, +20.3% QoQ, 64.3% of revenue	Played out
Europe/Cenexi	"management guided Q2 to 'a better next quarter YoY'"	Europe +30.3% YoY; Cenexi EUR KPIs not disclosed — proxy played out; direct KPI not observable	Partially
Margin bridge	"Consolidated EBITDA margin (Q1: 27.4%...) sits below the 30% near-term guide"	26.2% reported / 27.4% Adj.	Played out
Raw-material headwind	"raw-material cost headwind expected in Q2–Q3 as the inventory buffer depletes"	Gross margin −185 bps QoQ; +72 bps YoY — sequential signature only	Partially
FX	"reported growth should lean more on real volume"	+23.3% YoY with other income −18.0% YoY; CC split not derivable from filing — direction consistent	Played out
Tariffs	"Section 232 Pharmaceutical Tariffs do not apply to generic pharmaceutical products" (pre-call note, web-sourced, dated Sept 23, 2026)	No tariff-related cost line visible in the P&L — no visible impact	Played out
Dundigal	"4 Form 483 observations... CAPA pending"	Disclosed in press release: 4 procedural observations, Oct 2026 — post-quarter, disclosed	Played out
Fosun overhang	"keeps the strategic-overhang question live for the call"	Not addressed in the filing — remains open for the call	Not observable

Read our full results preview.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
FY27 revenue growth 12–13% CC, ex-GLP-1	Q4 FY26 earnings call (May 15, 2026); reiterated Q1 FY27 call	H1 FY27 +21.4% YoY reported (CC split not derivable from the filing)	On Track
Consolidated EBITDA margin 30% near-term; 35% in 3–4 years	Q1 FY27 earnings call (Aug 10, 2026)	26.2% reported / 27.4% Adj. in Q2 FY27 (Q1: 27.4%/28.3%) — below guide, not converging QoQ	Stretch
CDMO ~30% of consolidated revenue near-term	Q1 FY27 earnings call	44.9% of Q2 FY27 revenue (+31% YoY) — exceeded	Met
Cenexi ~EUR 200m FY27 revenue, high-single-digit margins	Q4 FY26 call; reconfirmed Q1 FY27 call	Cenexi EUR figures not disclosed in the Q2 filing	Too Early
Cenexi EBITDA double-digit % by year-end	Q4 FY26 earnings call	Not disclosed; two unreviewed subs' Q2 combined loss Rs.33.3 cr	Too Early
Base business new CDMO contracts USD 40–50m by FY27	Q4 FY26 earnings call	Not quantified; press release cites expanded tech-transfer dossiers + new microspheres/respiratory manufacturing contracts	Too Early
GLP-1 exhibit batches/filings Q3/latter-half FY27 (excluded from guidance)	Q4 FY26 earnings call	No GLP-1-specific update in the filing	Too Early
Capex Rs.2,000 cr over 5 years	Q3 FY26 earnings call (Jan 28, 2026)	H1 FY27 capex Rs.256.2 cr	On Track
"Revenue increasing 23% year-on-year"	Q2 FY27 press release (Chairman's comment)	Computed +23.32% YoY	Confirmed
"Profit after tax growing 58% year-on-year"	Q2 FY27 press release	Computed +58.29% YoY	Confirmed

Key Numbers, Quarter by Quarter

Metric	Q2 FY26	Q1 FY27	Q2 FY27
R&D spend (Rs. cr / % of revenue)	81.7 / 5.5%	77.2 / 4.3%	107.7 / 5.9%
ANDAs filed / approved (qtr)	6 / 5	n/d / n/d	11 / 10
Cumulative ANDAs filed / approved	378 / 329	389 / 342	399 / 350
US molecule launches (qtr)	7	4	4
RTU bags: filed / approved	20 / 14	21 / 18 (Q4 FY26)	24 / 18

Key Investment Insights

Key Positives

Revenue grew 23.3% YoY to Rs.1,833.6 cr; H1 FY27 +21.4% YoY
PAT grew 58.3% YoY to Rs.290.8 cr; EPS Rs.17.62 vs Rs.11.15
EBITDA margin expanded ~510 bps YoY to 26.2% reported (27.4% adj.)
USA revenue +42.5% YoY (+20.3% QoQ) to Rs.1,179.5 cr, now 64.3% of revenue; US CDMO +81% YoY
CDMO grew 31% YoY to Rs.822.7 cr (44.9% of revenue), exceeding the ~30% near-term mix target
11 ANDAs filed and 10 approved in the quarter; 4 US molecule launches (Dalbavancin, Multi-Vitamin, Sugammadex among recent)
Net cash Rs.3,221.6 cr; H1 FCF Rs.345.7 cr; CFO/PAT 0.99x
VSEZ USFDA audit closed with zero observations

Risk Factors

Reported EBITDA margin of 26.2% is below management's 30% near-term guide and did not converge QoQ (Q1: 27.4%)
Effective tax rate rose ~540 bps QoQ to 32.5%, driving PAT down 8.3% QoQ
Gross margin compressed 185 bps QoQ (65.3% to 63.5%) as the raw-material inventory buffer depletes
India revenue fell 41.8% YoY and Rest of World fell 21.1% YoY on delayed Middle East tenders; Canada/Australia/NZ −18.0%
Two unreviewed subsidiaries reported a combined Q2 loss after tax of Rs.33.3 cr
Promoter Fosun sold 6.00% (to 45.76%), leaving an overhang not addressed in the filing