Shares of Glenmark Pharmaceuticals fell sharply on Thursday after the company posted a steep 86 percent year-on-year drop in consolidated net profit for the first quarter of FY26.
Profit for the three months ended June 30 stood at Rs 46.8 crore, compared with Rs 340.2 crore in the same period last year. Revenue was broadly stable, inching up 0.6 percent to Rs 3,264 crore from Rs 3,244 crore a year ago, with the company noting early signs of recovery in its North America business.
At 12.40 p.m., shares of Glenmark Pharma were quoting Rs 1,985.7, lower by 2.9 percent on the NSE compared to the previous session's closing price.
Glenmark’s domestic formulations business in India grew 4 percent year-on-year in Q1FY26, trailing the overall market growth of 7–8 percent. The consumer health segment, which accounts for 8.4 percent of revenues, posted a robust 20 percent growth.
In the US, revenues came in at $91 million, up $8.6 million sequentially on a low base, aided by market share gains in injectables and partnered products. The company launched three products during the quarter but did not file any new ANDAs.
European revenues fell 4 percent year-on-year. Management, however, termed the weakness temporary and guided for a return to double-digit growth in the coming quarters. Meanwhile, the branded portfolio, including Ryaltris, delivered strong year-on-year growth.
Japan-based Nomura said that Glenmark’s 1QFY26 results were an all-round miss. "Revenues and EBITDA missed our estimates by 7 percent and 13 percent, respectively. Net earnings were adversely impacted by exceptional charges of Rs 320 crore related to settlement of the price-fixing litigation," noted the brokerage. Revenues for all segments, except for the US, were lower than estimates.
Nomura maintained its 'neutral' rating, with a price target of Rs 1,500 per share.
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