Below is a structured extraction and summary of the relevant and actionable financial information from Glenmark Pharmaceuticals Limited’s Q1 FY26 (quarter ended 30 June 2025) results filing:
1. Auditor’s Note
- Type of report: Limited Review Report by Suresh Surana & Associates LLP (Chartered Accountants).
- Conclusion:
- No qualifications, concerns, or issues reported.
- The auditor states nothing has come to their attention to indicate material misstatement or non-compliance with applicable accounting standards and SEBI regulations.
- The report is unmodified (clean review report) for both standalone and consolidated results.
2. Financial Performance
Periods Covered:
- Latest quarter: Q1 FY26 (Apr-Jun 2025)
- Immediately preceding quarter: Q4 FY25 (Jan-Mar 2025)
- Same quarter previous year: Q1 FY25 (Apr-Jun 2024)
- Full financial year: FY25 (Apr 2024 - Mar 2025)
Key Financials (All figures in ₹ million unless stated):
| Metric | Q1 FY26 (Jun 2025) | Q4 FY25 (Mar 2025) | Q1 FY25 (Jun 2024) | FY25 (Mar 2025) |
|---|---|---|---|---|
| Standalone Results | ||||
| Net Sales | 21,789 | 19,099 | 22,969 | 90,105 |
| Other Operating Income | 2,160 | 996 | 327 | 2,159 |
| Total Revenue from Operations | 23,949 | 20,095 | 23,295 | 92,264 |
| Other Income | 693 | 885 | 556 | 3,564 |
| Total Income | 24,643 | 20,979 | 23,852 | 95,828 |
| Total Expenses | 17,399 | 17,376 | 17,669 | 72,496 |
| Profit before Exceptional Items & Tax | 7,244 | 3,603 | 6,183 | 23,332 |
| Exceptional Items (Loss) | 3,232 | 1,792 | 0 | 1,792 |
| Profit before Tax | 4,012 | 1,812 | 6,183 | 21,540 |
| Tax Expense (Current + Deferred) | 709 | 334 | 1,646 | 5,437 |
| Profit after Tax | 3,302 | 1,478 | 4,537 | 16,104 |
| EPS (Basic & Diluted, ₹) | 11.70 | 5.24 | 16.08 | 57.07 |
| Metric | Q1 FY26 (Jun 2025) | Q4 FY25 (Mar 2025) | Q1 FY25 (Jun 2024) | FY25 (Mar 2025) |
|---|---|---|---|---|
| Consolidated Results | ||||
| Net Sales | 30,593 | 32,201 | 32,233 | 1,31,458 |
| Other Operating Income | 2,051 | 361 | 209 | 1,759 |
| Total Revenue from Operations | 32,644 | 32,562 | 32,442 | 1,33,217 |
| Other Income | 264 | 117 | 315 | 1,137 |
| Total Income | 32,909 | 32,679 | 32,757 | 1,34,355 |
| Total Expenses | 28,721 | 28,871 | 28,133 | 1,16,634 |
| Profit before Exceptional Items & Tax | 4,188 | 3,808 | 4,623 | 17,720 |
| Exceptional Items (Loss) | 3,232 | 3,728 | 0 | 3,728 |
| Profit before Tax | 956 | 80 | 4,623 | 13,992 |
| Tax Expense (Current + Deferred) | 485 | 36 | 1,221 | 3,520 |
| Profit after Tax | 470 | 44 | 3,402 | 10,471 |
| Profit attributable to Owners | 469 | 47 | 3,403 | 10,471 |
| EPS (Basic & Diluted, ₹) | 1.66 | 0.16 | 12.06 | 37.11 |
Margins (Standalone):
-
Profit before exceptional items & tax margin (PBEIT / Total income):
- Q1 FY26: 29.4%
- Q4 FY25: 17.2%
- Q1 FY25: 25.9%
- FY25: 24.3%
-
Profit after tax margin (PAT / Total income):
- Q1 FY26: 13.4%
- Q4 FY25: 7.0%
- Q1 FY25: 19.0%
- FY25: 16.8%
3. Detailed Notes / Management Commentary
- Accounting Standards: Results prepared as per Indian Accounting Standards (Ind AS), complying with SEBI regulations.
- Review & Approval: Results reviewed by Audit Committee and approved by Board on 14 August 2025.
- Segment Reporting: Company operates in a single reportable segment - Pharmaceuticals (includes generics and active pharmaceutical ingredients).
- Employee Stock Options: 131,881 options outstanding as of 30 June 2025.
- Exceptional Items:
- Q1 FY26 includes a provision of ₹3,232.32 million (US$ 37.75 million) related to settlement of multiple antitrust and consumer protection lawsuits in the U.S. concerning price-fixing and anticompetitive conduct.
- The settlement is subject to court approval and Glenmark denies all allegations; the provision is a commercial settlement, not an admission of liability.
- FY25 included exceptional items of ₹1,623.74 million (standalone) and ₹1,749.99 million (consolidated) related to earlier settlements of US lawsuits totaling US$ 87.5 million payable over two years.
- IGI (innovation arm) restructuring costs: ₹167.92 million (standalone) and ₹1,978.20 million (consolidated) in FY25 due to project closures, facility shutdown, severance, and tech-transfer costs.
- No changes in accounting policies or material adjustments reported.
- No specific commentary on AUM, NPAs, slippages (not applicable as pharma company).
4. Segment Information
- The company reports only one segment: Pharmaceuticals (generics + active pharmaceutical ingredients).
- No further segment or geographic revenue breakdown provided in this filing.
5. Capex, Projects, and Corporate Activity
- Restructuring:
- IGI Therapeutics SA underwent restructuring in FY25, including closure of some development projects and phased shutdown of manufacturing facility at Le-Chaux-De-Fonds.
- Transfer of CMC activities to Contract Development and Manufacturing Organization (CDMO).
- Legal Settlements:
- Provision for US antitrust litigation settlements as exceptional items (₹3,232.32 million in Q1 FY26).
- Prior settlements in FY25 also recognized.
- No explicit capex figures or new project announcements disclosed in this filing.
- No acquisitions, disposals, or mergers mentioned.
6. Standalone vs Consolidated
- Both Standalone and Consolidated financial results are provided.
- Consolidated results include 44 subsidiaries (listed in Annexure A), including international subsidiaries.
- Auditor’s review report confirms reliance on other auditors for 43 subsidiaries.
- Consolidated results show lower profitability compared to standalone, mainly due to higher exceptional charges and other expenses.
Summary for Investment Analysis Team
| Aspect | Key Points |
|---|---|
| Auditor’s Note | Clean limited review report, no qualifications or concerns. |
| Revenue Growth | Standalone revenue up QoQ (Q1 FY26 vs Q4 FY25), but down YoY (Q1 FY26 vs Q1 FY25). |
| Profitability | Standalone PAT increased QoQ but down YoY; exceptional charges materially impact profits. |
| Exceptional Items | Large exceptional provision of ₹3.23 billion in Q1 FY26 for US antitrust settlement. |
| EPS | Standalone EPS ₹11.70 in Q1 FY26 vs ₹5.24 in Q4 FY25; down from ₹16.08 in Q1 FY25. |
| Segment | Single segment - Pharmaceuticals. |
| Corporate Actions | Restructuring of innovation arm IGI; legal settlements ongoing; no new capex/project details. |
| Standalone vs Consolidated | Consolidated PAT significantly lower due to higher expenses and exceptional items. |
Actionable Insights:
- Exceptional legal settlements continue to impact profitability; monitor for further developments or approvals.
- Restructuring of innovation arm may improve long-term operational efficiency but has short-term costs.
- Revenue shows mixed trends; standalone revenue growth QoQ is positive, but YoY decline warrants attention.
- Consolidated profitability is weak compared to standalone, indicating challenges in subsidiaries or international operations.
- No auditor concerns; financials prepared per Ind AS and reviewed appropriately.
Please advise if you require further drill-down on any specific area or subsidiary.