Glaxosmithkline Pharmaceuticals Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,183.57 Cr (+20.78% YoY) and PAT growth of +30.44% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 03, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,183.57 Cr (+20.78% YoY) |
| PAT (Q2) | Rs. 335.88 Cr (+30.44% YoY) |
| EBITDA margin | 33.97% (-29 bps YoY) |
| EPS (Q2) | Rs. 19.83 (+32.44% YoY) |
Q2 FY27 delivered 20.78% YoY revenue growth (12.95% base-adjusted) with EBITDA margin of 33.97% landing on management's guided ~34% anchor, and normalized PAT growth of 19.54% after stripping the Rs.42.09 cr IT-refund interest. Execution on the promised opex normalization was delivered in one quarter, though the H1 margin of 32.87% makes the full-year anchor a stretch requiring ~35.13% in H2. Watch items are the gross-margin proxy erosion on imported costs and a working-capital build that took CFO to 0.54x of PAT, funded from a zero-debt, cash-rich balance sheet.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue "ahead YoY, watch headline vs sustainable" | "Direction: ahead YoY, but watch headline-vs-sustainable growth" | +20.78% consolidated headline; +12.95% standalone adjusted for CMO+GST base | Played out |
| Margin "flat-to-compressing vs the ~34% anchor, opex the pivot" | Opex normalization was "the biggest single determinant" | EBITDA margin 33.97% (at anchor); opex ratio 14.10% vs 16.62% | Played out |
| ~Rs.42.09 cr tax-refund interest lands in Q2 other income | "a below-the-line boost that should be stripped" | Rs.42.09 cr confirmed in filing Note 2; normalized PAT Rs.305.10 cr vs Rs.335.88 cr reported | Played out |
| FX/imported-cost drag "persists rather than worsens sequentially" | Q1 evidence + rupee elevated | Gross-margin proxy 65.05% → 62.45% sequential (persisted; sequential worsening on this proxy) | Partially |
| Sector pattern: "earnings lagging revenue" | GLAXO's opex line judged against it | PAT +30.44% YoY vs revenue +20.78% — PAT outgrew revenue — favourably | Contradicted |
| Biddle Sawyer sub loss (~Rs.16.15 cr in Q1) as a drag | Keep in mind alongside one-offs | Q2 sub contribution +Rs.1.26 cr (sub PAT Rs.1.28 cr) — drag not persistent | Partially |
Read our full results preview.
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 EBITDA margin ~34% | Q1 FY27 earnings call, 3-Aug-2026 | Q2 FY27: 33.97% consolidated (33.93% standalone); H1 32.87% | On Track |
| Opex ratios normalize "in subsequent quarters" | Q1 FY27 earnings call, 3-Aug-2026 | Other expenses 14.10% of revenue vs 16.62% in Q1 FY27, 15.37% in Q2 FY26 | Met |
| Rs.8,000 cr revenue in 4–5 years (12–13% CAGR framing) | Q1 FY27 call, 3-Aug-2026; Q3 FY26 call, 9-Feb-2026 | Q2 FY27 +20.78% YoY reported; +12.95% standalone YoY adjusted for prior-year CMO+GST base | On Track |
| Front-loaded Q1 opex will normalize in subsequent quarters | Q1 FY27 call, 3-Aug-2026 | Other-expense ratio 16.62% → 14.10% in one quarter; EBITDA margin 31.49% → 33.97% | Confirmed |
| FY27 margin anchor ~34% (hold-and-sustain philosophy) | Q1 FY27 call / Q4 FY26 call, 13-May-2026 | Q2 at 33.97%; but H1 at 32.87% implies ~35.13% H2 margin if H2 revenue equals H1 | On track this quarter; full-year delivery is a stretch case |
| Q1 growth carried a 4–5% base effect (CMO disruptions) | Q1 FY27 call, 3-Aug-2026 | Adjusted Q2 YoY growth +12.95% vs +21.20% headline — the prior-year distortion was still in the base | Confirmed |
| Metric | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|
| Innovation portfolio % of sales | — | 6.0 | 7.0 |
| Key promoted brands market share % | — | 28.0 | 27.8 |
| Digital HCP reach (lakh) | 36.0 | 36.0 | 36.0 |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.