Glenmark Pharmaceuticals Limited (NSE: GLENMARK) Q3 2026 Earnings Call dated Feb. 02, 2026
Corporate Participants:
Glenn Saldanha — Chairman and Managing Director
Anurag Mantri — Executive Director and Global Chief Financial Officer
Utkarsh Gandhi — Senior General Manager, Investor Relations
Analysts:
Unidentified Participant
Damayanti Kerai — Analyst
Tushar Manudhane — Analyst
Kunal Randeria — Analyst
Saion Mukherjee — Analyst
Krish Mehta — Analyst
Tarang Agrawal — Analyst
Nitin Agarwal — Analyst
Harshit Dhoot — Analyst
Presentation:
operator
Good morning ladies and gentlemen. Welcome to the Q3FY26 earnings conference call of Glenmark Pharmaceuticals Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Utkarsh Gandhi, Senior General Manager in Westshore Relations for Glenmark Pharmaceuticals Limited. Thank you. And over to you sir.
Utkarsh Gandhi — Senior General Manager, Investor Relations
Thank you. Liz Ann Good morning everyone and welcome to the Q3FY26 earnings conference call of Glenmark Pharmaceuticals Ltd. Before we start the Q and A, let’s review the performance for the quarter. For the third quarter of FY26, Glenmark’s consolidated revenue from operations was at Rs 39,006 million as against Rs 33,876 million in the corresponding quarter last year, recording overall YoY growth of 15.1%. For the nine months of FY26, Glenmark’s consolidated revenue is at Rupees 1:32,001.9 million as against Rupees 1,655 million, recording a YY growth of 31.3% in terms of our regional performance starting with India.
Sales for the formulation business in India for the third quarter of FY26 was Rupees 986 million as against Rupees 1037 million in the corresponding quarter last year, recording a YoY growth of 22.1% in terms of secondary sales, Glenmark continues to significantly outperform the IPM in terms of YOY growth as per IQVR, Glenmark’s India formulation business recorded a growth of 15.8% in the third quarter and 13% as per MAT December 2025 compared to the overall market growth of 10.9% in the third quarter and 8.3% after MAD December. Clinma continues to outperform the overall market in its key therapeutic areas like dermatology, respiratory and cardiac.
Glenmark’s India business is ranked 13th with a market share of 2.32%. The company has 11 brands in the IPM top 300 brands as per MAT December data, and in terms of its key therapeutic areas, Glenmark is ranked second in dermatology, second in respiratory and fourth in the cardiac segment as per IQVR third quarter data in terms of new product launches. So in Q3, Glenmark announced the launch of NepSmart GFB Smartules and Glenmark airs FBE Smartules, the world’s first nebulized fixed dose triple therapy for the treatment of chronic obstructive pulmonary disease or copd. Both products combine three proven medicines, glycopyronium formitrol and Budesonide to reduce airway obstruction, inflammation and improve lung function.
In a clinical study conducted in India, this nebulized triple therapy demonstrated rapid improvement in lung function and better control of breathlessness among patients. The treatment was well tolerated and demonstrated a good safety profile, offering patients a simpler and more effective way to manage copd. In terms of some of our other key products, particularly on the innovation specialty front, Tavimbra Brukinza, which we partnered with P1 and launched in the first quarter. In a short period of time these two brands have seen a very strong uptake in the market as a differentiated treatment option for patients across multiple solid tumors as well as hematological tumors.
The company expects these two brands to meaningfully contribute to the India business growth over the next two to three years. Lirafit the company was the first to launch the biosimilar of Lirafit continues to hold a clear market leadership position in the liraglutide market and gives a good segue for the company to launch other GLP1 agonists also and jabris, which Glenmark partnered with Pfizer and launched in January 2024. This continues to be well received by dermatologists as a novel treatment for moderate to severe atopic dermatitis with improved efficacy as well as oral convenience to patients. In terms of the consumer care business in India, the GCC business delivered sales growth of 21.5.
The flagship brand Candid Powder delivered a strong revenue growth of around 17% in the third quarter and now holds more than 56% market share as per IQVR data. Scalp Portfolio also delivered strong revenue growth of 50 plus percent in the third quarter and some of the other brands like Bondress, Aloe Vera, Episoft also delivered high double digit growth during the third quarter. Moving on to North America, the North America business recorded revenues of Rupees 9706 million for the third quarter of FY26 as against revenue of Rs 7813 million for the third quarter. This includes the out licensing income for IRB 2001 net.
Of that, the core business YOY growth for the North America region was 4.1% in the third quarter. Glenmark launched four products in Q3, all injectable products which included Sodium Bicarbonate injection, Rupiva cane injection, epinephrine injection and leucovirin calcium injection. Two NDAs were filed during the quarter. Glenmark plans to file three ANDAs in the upcoming quarter. In terms of our respiratory portfolio for the US, Glenmark has filed 2 anda for generic nasal spray and is awaiting approval for the same. The company has already filed the ANDF for Generic flow and 44mcg in May 2024 and in Q3 we also filed the NDA for generic flowvent 110 and the company is also working on other respiratory products which are in the pipeline and will be filed over the upcoming quarters.
Glenmark’s marketing Portfolio consists of 214 generic products and company currently has 53 applications pending at various stages of the approval process. In November 2025, Glenmark announced that it had received the EIR from the US FDA for its formulation manufacturing facility in Monroe, North Carolina with a Voluntary Action Indicated or BAI status. With this positive development, the company will restart manufacturing at the Monroe site. Moving on to Europe Glenmark’s Europe operations for the third quarter of FY26 were at Rupees 7963 million as against Rupees 7297 million, recording a growth of 9.1%. There was a recovery in the European business during the third quarter, particularly due to the onset of the winter season which aided the growth of the respiratory portfolio.
As per the secondary sales data, Glenmark continues to outperform its covered market in CE countries such as as Czech Republic, Poland and Slovakia. There were five new product launches in that region, which also aided the growth in the generic markets of Western Europe. Glenmark’s performance remained stable with strong achievement in Germany and the Netherlands. The branded respiratory portfolio in Western Europe also sustained its momentum. Glenmark continues to focus on increasing contribution from branded markets and portfolio in Europe. Glenmark announced the launch of Inlevy in the UK market earlier this year and the brand has seen a strong uptake throughout the year in the UK.
In October 2025, Glenmark’s partner Cosmo received marketing authorization approval for Winlevy in the European Union as well, and Glenmark is now planning to initiate the commercial launch in its license to European territories by Q1 FY27. Moving on to emerging markets for the third quarter of FY26, revenue from the emerging markets region was Rs 8,119 million as against Rupees 7,491 million for the corresponding quarter last year, recording a growth of 8.4%. Our Russia business continues to perform well as per the IQVS secondary sales data. Our Glenmark’s Russia business recorded growth of 15.1% in Q3 and MAT December in its core therapeutic areas of dermatology.
Glenmark recorded faster secondary sales growth than the overall market and Glenmark continues to rank ninth in dermatology and second in the expectorant markets. Rialtus, as one of the key brands in Russia continues to gain share. The Latin America region delivered high double digit growth in the third quarter. Key markets as Brazil, Mexico witnessed a strong recovery on the back of multiple differentiated product launches in the respiratory segment. The Altis again is a key brand here, particularly in Mexico and is awaiting approval in Brazil and is expected to help sustain the high growth in the region.
In the Middle East Africa region, secondary sales growth remains subdued in key markets mainly on account of some new product launch delays. Rialtris however, continues to see strong pickup post its launch in key markets in the region such as Saudi Arabia and it’s still the leading allergy product in South Africa. The region is expected to show gradual recovery towards growth starting in the fourth quarter. Key markets in the APAC region such as Malaysia, Australia recorded double digit secondary sales growth during the third quarter. The overall region is expected to maintain strong performance in the forthcoming quarters.
Glennma continues to remain one of the leading dermatology and respiratory companies in the APAC region. A quick update on our Global Innovative Portfolio Rialtris Starting with Rialtris So as of December 2025, marketing applications for IELTRIS have been submitted to more than 90 countries across the world. The product has been commercialized in 52 markets and is expected to be launched in additional 10 to 12 markets over the next few quarters. In Q3 we launched Rialtris in three additional markets including Colombia. As per the IQVR data, Railtris continues to see a robust performance both in terms of value and unit market share and as recorded global secondary sales growth of 50% plus YoY.
Glenmark’s partner companies across Europe and emerging markets continue to witness a steady increase in its market share in all licensed markets. Glenmark and its partner in mainland China, Grand Pharmaceuticals, secured approval for ieltris in October 2025. The product is expected to be launched by Q1 of FY27 and Glenmark’s partner in Thailand, Organon is also planning to launch railtrace in Q4 of this year. Winlevy as mentioned earlier, company launched Winlevy in the UK market in Q1 and saw a strong uptake throughout the year. Glenmark’s partner received marketing approval for WinLiving Europe and Glenmark is planning to initiate commercial launch in its licensed European territories by Q1 of FY27 and win levy is currently under regulatory review in South Africa as well where Glenmark has the rights commercial rights marketing applications in 18 markets till date.
The first commercial launch is expected in FY27. The company has received authorization from the regulatory authority in Kenya, Mauritius and Uganda for supply of Kinio via early access to programs or named patient programs and as announced earlier, Glenmark has also initiated a global multi center phase 3 study in resectable stage 3 NeoADjuvant or adjuvant non small cell lung cancer. Trastuzumab Razetican partnered with Hangry in Q3. Glenmark advanced its preparations for the initiation of marketing applications for Trastrozumab resetican next generation HER2 targeting antibody drug Conjugate which was in licensed in the second quarter from Jiangsu Hengry Pharmaceuticals for several emerging markets.
The company expects the first wave of MA applications to begin in Q1 of FY27. Lastly, omelartinib partnered with Hanzo in the third quarter of FY26. Glenmark entered into an exclusive license and collaboration and distribution agreement with Hanzo Pharmaceutical Group for Omelutinib, a third generation EGFR tyrosine kinase inhibitor for the treatment of non small cell lung cancer. Glennmark gained rights to develop, register and commercialize olutinib across Middle East, Africa, Southeast Asia, Australia, New Zealand, Russia, CIS and a few selected Caribbean countries. Olutinib was Approved in the UK in June 2025 for the first line treatment of adult patients with locally advanced or metastatic non small cell lung cancer with activated EGFR mutations and the treatment of adult patients of locally Advanced metastatic EGFR T790 mutation positive NSCLC HANSA has also received positive CHMP opinion in the third quarter with an MA approval expected in the fourth quarter and Omelutinib is approved for four indications in China and is already marketed in China.
Glenmark is preparing to initiate marketing authorization applications for omelotinib in the first half of CY 2026 and commercial launch anticipated during the second half of FY27. Lastly on IGI so Glenmark’s IGI features a robust pipeline of innovative oncology molecules targeting multiple myeloma and solid tumors and IGI also has two autoimmune assets which have been out licensed to leading companies and are in clinical development for ISB 2001. IGI is currently executing the Phase 1 study in Australia, United States and several European countries. The study continued to dose expansion in April and is continuing to rapidly enroll patients.
Our next clinical molecule in Oncology which is isp part of the Immunide platform. This is a first in class multi specific NK cell engager developed for solid tumors and the first program from IGI’s Immuno Platform. As mentioned earlier, a clinical candidate was selected in October 2025. The program has now entered IND enabling stage and we are expecting to file the IND before the end of calendar year 2020. In terms of our immunology portfolio, ISB 880, which is partnered with Almiral. So Almiral’s phase 2 clinical study in in Hitratonitis Suprativa continues to advance with ongoing patient recruitment and dosing reinforcing the program’s strong operational progress.
Almiral also plans to initiate POC for other additional inflammatory skin diseases for the for ISB and ISB 830 Phase 1 trial was initiated in the first quarter of calendar year 2025. Astria presented initial data at the EADV conference in September 2025 and now we are working to actively evaluate the most promising path forward for this molecule to accelerate the development. From the Glenmark management team we have Glenn Saldana Chairman and Managing Director and Anurag Mantri, Executive Director and Global cfo. I’ll now hand it over to Glenn for his opening comments.
Glenn Saldanha — Chairman and Managing Director
Thank you Utkarsh and good morning everyone and welcome to the Q3 earnings call. If I look at the third quarter Glenmark we delivered strong growth in the third quarter with a broad based growth across most of our markets. While the overall geopolitical uncertainty remains prevalent. Depreciating global currencies helped our overall performance during the third quarter. In the third quarter we continue to launch some very exciting innovative products in our core therapeutic areas such as GFB nebulizer in India in the chronic respiratory segment. Also some of the products that we launched earlier, Tavembra and Brukenza continue to drive our India performance.
The positive outcome at Monroe has long term strategic value for our US Business. In this quarter we also partnered with Hanso for Amolitinib which is a third generation novel egfr. We are pretty excited excited about this asset because it will come to market in the second half of FY27 and can significantly enhance our overall innovative franchise. If you look at innovative franchise we have about seven, eight products, innovative led global assets which will drive our sales growth over the next five years, primarily in the areas of oncology, dermatology and respiratory medicine. IGI on the back of 2001 we continue to do exceedingly well with our IGI platform.
2001 is progressing well in terms of the dose expansion study and we’re expecting 2301 filing by the end of this calendar year which we’re pretty excited about. Going forward. We expect a strong finish to FY26 with a good growth particularly in the US via some of our respiratory launches that we are anticipating in the fourth quarter of this year. Our India business continues to outperform the market and we see good long term growth levers especially in chronic respiratory and our oncology franchise. We think Devembra Brukenza is the first launch of we will also launch eventually Amalurtinib and the Hengiru asset and various other assets in India which will drive the sales of our India franchise.
So we see very strong growth coming out of India over the next five years. We will also launch amlotinib in the second half of FY27 and we’ll keep scaling up Rialtris and Winlevy going forward forward. Rialto will be a $100 million product for us this year and continues to scale as we go forward. So in summary, the next five years continue to remain pretty exciting for Glenmark in terms of growth performance across all the parameters and we continue to move up the value chain especially with our innovative franchise over the next five years through these seven, eight launches which will clearly define the company and the future as we go forward.
We clearly remain on track to achieve our overall objectives that we laid out as part of Glenmark 3.0. With this I’ll hand it over to Anurag to give his opening comments and then we can take Q and A.
Anurag Mantri — Executive Director and Global Chief Financial Officer
Thank you Glenn Good morning everybody. We delivered on our near term guidance with a strong revenue performance and a margin profile of 23% in this quarter. The business growth was helped in part by the currency depreciation across our key geographies. However, our base business performance continues to remain strong especially in key blended markets with our gross margin in current quarter was impacted by the product mix. However we saw a good operating leverage which help overall margins. We continue to remain net cash positive and are on track to target the gross debt zero by March 26th.
Multiple initiatives are ongoing to help normalize working capital movement to remain around 115 days of net working capital days in line with our guidance by March 26, we remain confident of closing FY26 on a strong note and foresee a good start of to our next growth journey of Glenmark 3.0 from 2027 onwards. Thank you.
Utkarsh Gandhi — Senior General Manager, Investor Relations
Thanks Anurag. So with that I think we can open the floor up for Q and A. Liz Ann, over to you.
Questions and Answers:
operator
Thank you. We will now begin with the question and answer session. Anyone wishing to ask a question may please press star and one on your touchtone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants request that they use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is in the line of Damayanti Karai from hsbc. Please go ahead.
Damayanti Kerai
Hi, good morning and thank you for the opportunity. My first question is on your comment around gain from currency depreciation during the quarter. So if you can just quantify how much was that and excluding that, what kind of growth we would have recorded.
Anurag Mantri
So Damianti currency depreciation sits in the goes into the multiple part of the P and L. So in a normal business business case, whatever the revenue and in terms of the converting that revenue from the geography into the rupee term that goes and sits in the normal EBITDA side. And if you see on exceptional item there is a currency difference of 7.3 crore which is only on exceptional item. So out of exceptional item 177.8 crore is due to the labor code and balance 77. 7 sorry, 7 crore is because of the exceptional item. And so it sits into the multiple part of the thing businesses and it’s difficult to actually quantify that way.
Damayanti Kerai
Okay, my second question is on the flowing status from the fda. So since your last communication, have you heard anything incremental and when do you expect the agency to come back with its decision?
Glenn Saldanha
So all I can say is, you know we’ve had multiple discussions with the agency and we are very close to, you know, we’re hoping we’ll get an approval very quickly on flow.
Damayanti Kerai
And 44 Glenn, you mentioned respiratory will. Be significant in the fourth quarter. So flow will be part of that.
Glenn Saldanha
We are hoping that flowent is part of it. But we also have the nasal spray and various other products in the respiratory franchise which could get approved in Q4.
Damayanti Kerai
Okay, and my last question is on your working capital management. You mentioned 115 day is something which you are targeting by March 26th. So in terms of key changes and progress, if you can walk like what are the key initiatives and how things are shaping since last quarter when we had some write offs etc. So if you can just talk a bit about your working capital management part.
Anurag Mantri
Yeah. So Damyanti, we have initiated multiple options basically. So one was on the sales basically to get the debtors reduced and that is through the factoring and some of the other instruments. So including the other market like Europe and Latam which we were not doing earlier and which obviously at a. We will be very cost conscious on this part. So that’s one on the sales side and similarly on a MSME and vendor side also we are trying to elongate the payment cycle through the RBI related legitimate channels which include vendor financing and some of the vendor bill discounting sort of thing.
So which will help us to move both on a sales side as well as on a purchase side to reduce the working capital cycle.
Damayanti Kerai
Okay, so as of December, where do you stand against this target of 115 days?
Anurag Mantri
Right now we are actually again lower than 115 days. But as the business activities increase, that’s why we are keeping. But right now we are close to 110 days.
Damayanti Kerai
Thanks, I will get back.
operator
Thank you. The next question is in the line of Tushar Manudhani from Motilal Oswal Financial Services. Please go ahead.
Tushar Manudhane
Thanks for the opportunity, sir. On Monroe, now that US FDA issues are behind so how do we. What would be the sort of trajectory in terms of business? I guess product approvals are still not come. So how do we start the commercial production and all?
Glenn Saldanha
So I think we will start commercial production in this quarter and we have one or two approved products. So we will start commercializing that next year. You can anticipate we will sell about three products with a number of filings right next year. And I think the way to think about Monroe is you know it’s. It’ll take some time right. For. For the site to be fully in full flow. Right. In terms of commercial production and at the operating level about. I would say about four years right from today, you know we will. You. Know we will break even at the operating level.
Tushar Manudhane
And also how do you intend to increase the number of filings from this site? Maybe over next 12 to 15 months.
Glenn Saldanha
I think every year we will have at least three, three odd filings right from the site. And we are working specifically on very complex injectables. Right. So we’re not doing any run of the mill products. So that is further enhanced the filings.
Tushar Manudhane
Got it sir. And so secondly realtor is you highlighted it’s $100 million product. Now major geographies and their contribution, let’s say any geography which is contributing set more than 10, 15%. If you could just refresh that.
Glenn Saldanha
It’S pretty broad based. So Europe obviously is a big driver along with some leading emerging markets like Russia, Australia and multiple other countries. Right. Which where the bulk of the sales are coming from. But I think it’s pretty broad based overall. So there’s no country which is more than. No, no geography which is more than 20, 25% of sales somewhere thereabouts.
Tushar Manudhane
Got it sir. And lastly on gross margin, like if I exclude the out license income, the gross margin while it’s highlighted there, it’s a product mix. But is there anything further because without, without the out licensing income the gross margin is much lower at 65%.
Anurag Mantri
Yes. So it’s largely because of the product mix and geographical mix. Because of that I think. But I think we are on track, I think we should be on. I think you will see a recovery on this. And what we see our guidance is overall at EBITDA level we are on track to deliver our guidance of 23% in a sustainable basis.
Glenn Saldanha
Also just one point on gross margins, if we get these new product approvals right in Q4 you will see a definite uptick in the gross margins.
Tushar Manudhane
Got it. And so just a request and a suggestion that if you could put the RND expense in the presentation or the press release itself, given that it’s a core sort of for Glenmark Pharma, it would be good instead of putting it in the opening commentary in the presentation.
Glenn Saldanha
Sure. Just to reiterate, so R and D for this quarter was 290crores total. R and D. Yeah.
Tushar Manudhane
Thank you. Thank you.
operator
Thank you. The next question is from the line of Kunal Randaria from Access Capital. Please go ahead.
Kunal Randeria
Good morning Glenn. In Europe you have shown a repeat growth of around 9%. But I think the currency appreciation, I mean, sorry rupee depreciation would be around 15%. So do you decline in constant currency in Europe?
Glenn Saldanha
See, I think Europe, the way to think about Europe is, you know, we’ve had a phenomenal last three years or four years. Right. I mean the business has done exceedingly well. If you look at our European business. Right. Given that the first half we’ve had some challenges in terms of growth. Right. In the first half going forward, I think Europe you should expect like a single digit to low double digit growth from here. Given that we’ve grown over 25% CAGR over the last three, four years.
Kunal Randeria
Sure. But I think you had earlier mentioned that maybe in the medium term it can grow in double digits. So is it because launches are a bit slow? See, 26 I can understand from the base of 25, but about FY27, 28, can you still grow in double digits?
Glenn Saldanha
I think we can grow double digit in Europe. I mean the key is, you know we are waiting for some new product approvals, right? I mean for example in F27 we should have at least a couple of respiratory product launches which should drive Europe. Also Rialtus, you know, we should see some incremental growth coming in Europe in F27 and beyond. So overall the business and Win Levy also will contribute, right? I mean we’re just launching Windlevy in UK and in Europe. So overall the business should continue to do well. Right? But I mean just to be conservative, we are saying high single digit to low double digit growth for Europe going forward.
Anurag Mantri
An increasing contribution of branded market will aid to this actually.
Kunal Randeria
Fair enough, fair enough, sir. Secondly, on the ISP product 830 and 880 and I see both products are progressing well now. So can you share what can lead to milestone payments for you?
Glenn Saldanha
We don’t give any visibility to specific milestones. Right. As a company, I mean we stayed away from that. So I think, look, I think the takeaway message is, you know, we have three innovative assets all progressing well in the clinics. Right. So 2001 continues to do well for us. Additionally 880, you know, with Almaral starting the phase two, that’s an exciting asset. And then of course 830, right. So I mean we have these three assets in the clinics and you know, hopefully this year, by the end of this calendar year we’ll have 20, 2301 also going into the clinics, right.
And we have a good pipeline of, of innovative assets from here on. Right. But I think from a commercial perspective, the way to think about it is the next five years, right. Will highly will be contributed by these seven, eight innovative assets, right? The, the Hanso, Hengri, Enver, Folumab, Rialtris, Win Levy, Tavembra, Brukenza. I mean these are the next five years and then post that the following five years will be all about 2001 and some of these immunology assets and some of the rest of our portfolio. So I think that’s the next 10 year journey for the company.
On the investment innovation side.
Kunal Randeria
Sure. Just one more if I can. You have increased your filing place in the us so can I ask from which plants Are you doing the filings? Because Indore but Eco are still I think in the regulatory scanner.
Glenn Saldanha
So I think the way to think about our US business is there are two plants, Aurangabad and Mondo. Right where the bulk of our filings are coming out of. GOA and Indore are under warning letter. So we’ve transferred some of the products to some US CMOs and we got a sucralfate suspension approved which was from one of the warning letter sites. And likewise we have some other products which are tech transferred to uscmos. We have completely discontinued US commercialization and filings.
Kunal Randeria
Yeah, sure, that’s very helpful. Thank you and have a rest.
operator
Thank you. The next question is from the line of Sayan Mukherjee from Nomura. Please go ahead.
Saion Mukherjee
Yeah, good morning and thanks for taking my question. Just some numbers this 290crores of R and D if you can split between Iconos and the rest of the business.
Anurag Mantri
So around 50% was of this was IGI related.
Saion Mukherjee
Okay. Okay. The second one was regarding your other expenses which seem to have come off on a year on year basis despite you know currency depreciating impacting costs in many of your international markets. So if you can give some color on why the other expense is coming down and how should we think about that going forward.
Anurag Mantri
So other expenses broadly remains in line. But if you see on a quarter on quarter basis sometime because of approval and the phasing of the expenses sometime it goes lower but I think overall we should see an inflationary related impact on on the other expenses. So this quarter it looks lower but I think it’s more a phasing and booking issues.
Saion Mukherjee
Okay. And my final sir, if I can ask on you know if you can share the net cash number and also the capex that you have done for this year both tangible addition and intangible addition.
Anurag Mantri
So capex in this quarter was around 215 crore and YTD capex was 715 crore and on this quarter capex around 55% was on intangible and 45% was tangible. So that’s what the broadly capex number was on net cash. If you see we remain netcash positive and in fact the gross debt was close to around 100 and net cash was also close to 600 crores. In fact we had a large payment in this quarter of around 1250 crore which include IGI tax dividend we have paid we had a capex amount so that despite that actually we remain on cash overall net cash positive.
Saion Mukherjee
So what is the Number. Sorry sir, Net cash number.
Anurag Mantri
You said around 600 crore.
Utkarsh Gandhi
Sorry Shahin. Gross debt is about 600 crores and the net cash is.
Saion Mukherjee
Okay, okay. And just in terms of your future liabilities, if you can, you know what should we sort of pencil in because some of the licensing deals that you have done, you know, from various companies in the recent past and also some liabilities related to litigation. If you can have some visibility for this year, next year, how should we think about payouts that you know, if you have to factor in.
Glenn Saldanha
So I think just couple of things right. On the legal settlements, obviously shine, we can’t give too much of visibility. Right. However, if you look at the MDL, right. We have done a settlement with the DPPs. That’s public information. Right. And we still have some of the other cloud to go. Right. Which is mainly the AGS and the EPPs. Right. On the MDL, which is probably the largest right now in terms of legal cases. So that’s on that side. On the innovation side with us doing these three transactions, the Hangary transaction, obviously some of it is built into the intangible numbers that Anurag mentioned and amlotinib, we are still in the process of paying that.
I think that is a.
Anurag Mantri
So timing wise it could be in this quarter or it could be early next quarter I think because it’s difficult to actually give you the specific because it depends on the company commercial progression of the deal. But I think it could be somewhere at the end of this quarter or.
Glenn Saldanha
Early next quarter accordingly and then going forward beyond that. The next big milestones are all linked to the launches of these products. But we don’t anticipate any big amounts being paid on any three of these assets. Right. So I think that’s kind of where we stand. It’s more back ended royalty based and sales link milestones and which are the drivers to the numbers, I think.
Saion Mukherjee
Okay, thanks a lot. I’ll join by.
operator
Thank you. The next question is in the line of Krish Mehta from NAM Holdings. Please go ahead.
Krish Mehta
Thank you for taking my question. There are two questions. The first is on your specialty business, the 7, 8 innovative assets which Glenn mentioned earlier. So if you could just broadly directionally tell us in terms of how the gross margin level would differentiate from the rest of our portfolio in these seven, eight innovative assets, including the ramp up we’ve seen in Riotous and where you can see the gross margin eventually settle, you know, as we scale up these 7, 8 assets.
Glenn Saldanha
I think that’s a very good question. Look, see Oncology assets, the gross margins are significantly higher than than where we are today, the core business. Right. So I think more than the gross margins is also the EBITDA margins will be significantly higher. So there will be a definite margin uplift. Right. I would anticipate a lot of this will start playing up from FY28, not 27. By 28 you’ll have amlotinib fully, you know, commercialized in many, many markets as well as, you know, the angry asset starting to commercialize in some of the markets by F28. So I think the real uplift in the margin profile of the company will happen from the current 23 odd levels.
Right. Will happen from F28 onwards.
Krish Mehta
Okay. No, that’s helpful, Glenn. And if you could throw some light on how the Iconos, you know, quarterly revenue and cost will be accounted for going forward in terms of, you know, how we’re recognizing the ABBVIE payments. If you could just explain on the accounting for the next few quarters, revenue and cost both.
Anurag Mantri
So on a revenue side, whatever. As you recall the upfront payment which we got, we booked 525 million last quarter. Last quarter and now there would be a equalized run rate of 17 and a half million dollar every quarter. On expenses side we get a reimbursement, but which reimbursement be net it off and goes into the other expenses. So that does not go impact the top line and bottom line simultaneously. So that actually gets netted off as per the reimbursement part and the other expenses.
Krish Mehta
That’s very helpful. And my last question was, you know, what will be the number for this Iconos quarterly revenue And I mean the Iconos quarterly cost that we spend going forward say for the next three to five so.
Glenn Saldanha
So we’ve guided to a 70 million run rate. Right. In terms of burn for IGI. Right. Annualized 70 million. So we’ll stay within that.
Anurag Mantri
And we are booking the exactly 17 and a half million per quarter which is again 70 million every year. So that’s how we are booking the revenue also on expenses.
operator
Thank you. The next question is in the line of Sukharat Patil from Eyesight Fintrade Private Limited. Please go ahead.
Unidentified Participant
Team. I have two questions. The first question to Mr. Glenn is across Glenmark’s core business. You have spoken extensively about the portfolio focus and hepatitic priorities. Just want to understand the key trade offs you are currently making between investing behind scale in established market versus nurturing. Newer. Therapies in newer areas. And what integral internal signals would you Lead to rebalance the capital or management attention between these two sectors. Thank you. That’s my first question. I’ll ask question after this. Thank you.
Glenn Saldanha
So I mean Glenmark we’ve always been therapy focused, right? Unlike many of our peer companies we are focused on these three areas, right? Derm, respiratory, oncology and I don’t think it’s that easy to switch areas at least for us because we have built deep expertise starting from R D right up to commercialization in these three areas which actually is a competitive advantage for us. That’s the way we view it. So I think given that given this expertise that we built in these three areas we are now expanding our EM franchise India and emerging markets in terms of commercialization with a clear view that longer term as we get more innovative assets we could continue to move up the value chain into much some of the developed markets as we go forward.
So I mean the capital allocation between the therapy areas versus getting into new areas doesn’t exist for Glenmark because we built our business basis that at least for now. Right. And that’s the next five to 10 years we, we’ll continue to focus on the areas that we have defined for ourselves.
Unidentified Participant
Thank you. My second question to Mr. Mantri is beyond high level margins and cost commentary what are the key early indicators you track internally across pricing, product mix and working capital that give you confidence on profitability and cash flow sustainability before these trends reflect in the reported results.
Anurag Mantri
So good question. Basically what we track and this is very critical for us because especially when we are operating in emerging markets and across the markets so we track closely our working capital. One is that on a debtors and inventory side because these market consumes a large working capital requirement and also on a purchase side so actually how to bring the EdTech working capital cycle more efficient and reduce this cycle. So if you see industry has been maintaining almost operating at 125130 days but we are targeting 115 days this year and then we will continue to improve work on the improvement further.
So this is what we closely track Debtors, inventory, creditors days and how to actually improve with the with the various instrument but at a most efficient cost manner.
Unidentified Participant
Thank you and best of luck for the next quarter.
Anurag Mantri
Okay, thank you.
operator
The next question is on the line of Zaire Kirani from Kanwala Securities. Please go ahead.
Unidentified Participant
Hello, thank you for the opportunity. I would like to ask that what is the planned CAPEX for the next fiscal year and what are the strategic motives behind it?
Glenn Saldanha
I think the Capex typically is running at around 700, 800 crores a year.
Anurag Mantri
So you should see the same 800. Crore with the capex for next year. Actually next year we should see.
Glenn Saldanha
So that’s the way to think about it. And I think the investment is all going into one is ongoing capex, right. In terms of plants, you know, expanding our current lines, you know, and various facilities. Right. That’s the bulk of it and some of the in licensing that we’ve done.
Unidentified Participant
Okay, okay, thank you.
operator
Thank you. The next question is in the line of Tarang from Old Bridge Capitals. Please go ahead.
Tarang Agrawal
Hi, good morning. Just a book.
operator
Sorry to interrupt. Sarang, we are not able to hear you. Can you speak a bit louder?
Tarang Agrawal
Hi. Am I audible?
Glenn Saldanha
Yes, hello.
Anurag Mantri
Yes, yes, go ahead. Good morning.
Tarang Agrawal
Just a bookkeeping clarification. The net net cash as on 31st. December 25th is over and above what. You’Ve, you know, reserved at Iconos or this is on a consolidated basis.
Anurag Mantri
So cash is at a consolidated basis. Basically Iconos money we actually keep utilizing as on as per their phasing requirement. So it’s not that we keep that cash separately. So it’s a consolidated numbers which I told you on the 600 crore of net cash.
Tarang Agrawal
Got it. Okay, thank you.
operator
Thank you. The next question is in the line of Tushar Manutani from Motila Lutwal Financial Services. Please go ahead.
Tushar Manudhane
Yeah, thanks for the follow up. Just one question, sir. Any of the assets now where you know there is a further scope of the deal, at least the current assets or probably any new asset that can come up, let’s say over next six to nine months.
Glenn Saldanha
So Tushar, I can’t give you any visibility to a further part partnering right now, but all I can say is the work. Yeah, good.
Tushar Manudhane
No, I meant to ask that the at least the products which are already, you know, sort of out licensed to the partners. So is there a scope for getting more partners for such products? Firstly.
Glenn Saldanha
Look, there is always scope, Tushar, right? I mean on each of these assets, right. We can always look for some regional partnerships, some smaller partnerships. I mean it can go on and on. Right. But I think it’s not right to give any visibility around partnering, right. On each of the assets. One is that we already have and even subsequent assets, right, that we’re developing like 23 or one and beyond. Right. All of them can be partnered at any point in time. Our bigger challenge for us is that what is the optimal time to do any of these people partnerships and do we really need to do it because otherwise we end up giving up too much if we do it too early.
Tushar Manudhane
Got it sir. This is helpful.
Glenn Saldanha
Thank you.
operator
Thank you. The next question is in the line of Damayanti Karai from hsbc. Please go ahead.
Damayanti Kerai
Hi. Thank you for the opportunity again Glenn, I have a question on this ISP 2001 asset. So you are still conducting an enrolling patient for triagnet studies. Right. So just want to understand when this R D and clinical trial responsibility will be, you know, going to the partner or you will complete the triad and like how things work there.
Glenn Saldanha
So unfortunately I can’t give you too much visibility on, on. On our relationship with AbbVie. Right. But all, all we’re saying is the dose expansion expansion will end and we will, you know we, we’ve, we’ve made significant progress with the dose expansion and I think any further information you will see in, in some public communications as and when we are ready to put it out.
Damayanti Kerai
Sure. And my second question is again yesterday during the budget speech I guess there was emphasis on biomanufacturing, biomanufacturing production in India by the finance minister. Any initial thoughts? Because I guess he was emphasizing on oncology and other MCD treatments etc. So since you are I think focus in these segments. So any thoughts here?
Glenn Saldanha
So currently we don’t, you know we don’t do any manufacturing of biologics within Glenmark. Right. In house we’ve continued to outsource a lot of our, even a lot of our biologic manufacturing. Right. However, I mean you know, we never know how things play out in the future. So it’s definitely a positive for the industry.
Damayanti Kerai
Okay, thanks. Thank you.
operator
Thank you. The next question is in the line of Nitin Agarwal from GAM Capital. Please go ahead.
Nitin Agarwal
Thanks for taking a question Glenn. On two business. One is in the U.S. you know us obviously with a couple of recipe approvals. You talked about likely coming through this year in the next few quarters and you talked about some of the first two files which would probably come towards the end of the year. So that probably gives us decent visibility on 27, 28 growth in the U.S. now how should we think about us subsequently? I mean are these sort of one off drivers which come in and business gets to a base, relatively high base and then how should we think about us subsequently from here on? I mean after these drivers are in the business.
Glenn Saldanha
So I think the way to think about it is 27 is all about fluent 44 and maybe one more strength of flowent and the three out of the three at least two sole FTFs. Right. Coming onto the market in the second half of F27, 28 and beyond. You know, we will see some of the Monroe approvals, you know, injectable approvals starting coming through as well as the additional respiratory filings that we are doing over the next 12 to 18 months. Right. Which again are super complex and difficult. Right. So I think These are the two main drivers to the US business from 28 and beyond.
Right. As we go forward.
Nitin Agarwal
And Glenn, on the recipe filings, when you said these are complex filings by when do you think you’ll be probably able to do the first of these filings beyond flow?
Glenn Saldanha
It’s probably happening in the next three to six months.
Nitin Agarwal
Okay. Okay. And secondly on the emerging market business, you know, there has been some slowdown this year, but how you talked about Europe being a slightly slower sustainable growth from year on. How should you think about the emerging market?
Glenn Saldanha
So emerging markets, you know, next year should be a strong year for ems. Okay. And you know the core business, we see some significant growth plus of course with the launch of of this amlolitinib. Right. In the second half of next year. Right. Starting from then EMS should be a significant driver Right. Over the next five years for the company.
Nitin Agarwal
So this is what like a 15, 20% growth business on a compounding basis or like a 10, 15% compounding business. How do you broadly calculate?
Glenn Saldanha
If you see on a five year basis it’s north of 20% very clearly.
Nitin Agarwal
Going forward. Okay, okay, okay. And lastly Glenn, on the specialty business, that’s a right, obviously it’s scaled up to close to 100 million. As you talked about X of Wildtrace. When do you mean how meaningful? When do you see the other launches start to become meaningful for us? Say 50 million 200 million dollar bracket. When as collectively when do they get there?
Glenn Saldanha
See, Rail Trace is currently growing at 25, 30%. Right. Top line. So it’s still the growth numbers are still very strong in the existing market. Over and above that, we’re still waiting for the Chinese launch to happen. Coming up, we’re expecting a Brazilian approval coming through. So there are still a number of markets where we’re still not commercialized. So I think getting up to 200, 250 is not going to be a huge challenge for us over the next three to five years.
Nitin Agarwal
And on the ex ryaltrist portfolio, when do you think it starts to become meaningful?
Glenn Saldanha
Sorry, say that again. Ex railtris innovative portfolio. Is that what you’re Talking about when.
Nitin Agarwal
Does it become meaningful? I mean when does it start to become meaningful? $50 million plus thereabouts.
Glenn Saldanha
I think F28 you’ll see a big, big upswing right because F28 as I said you’ll have this amlolitinib plus you’ll have some of the, the Hungary, some, some markets of Hungary plus of course India will be really meaningful. I mean starting F27 itself in the second half with ambition being launched right. And in India right then Tibembra Brze are doing well. You know the run rate already is massive for Devemba Brukenza and then again F28 we’ll have the these other the Henry asset also launching. So I think the build out is very solid. Right. And you know you’ll see some good growth numbers.
F28 for sure you’ll be ahead of 50 million right. Collectively extra altruist.
Nitin Agarwal
That’s nice. And if I take one last one anrak on the when you think about again EBITDA margins for the business over the last couple of next to two to three years I mean do you see operating leverage so what will drive business from your on it is gross margin improvement or this is you see also operating leverage inherent in the business which can drive both. You know we can probably add to the margin improvement as you go forward.
Anurag Mantri
So basically if you see as Glenn pointed out is that all these new innovative assets coming in won’t more branded mix share increasing in our overall mix emerging market playing very strong for us. I think all this put together you will see a margin expansion northward of what our guidance is there but our guidance is right now mostly for this year next say four to three to four quarters. But as Glenn mentioned FY28 we see all these newer in licensing assets coming up and all these things playing out we should see a good positive consolidation in our gross mark our EBITDA margins because it will be operating leverage after this actually because our base expenses have been built out.
So it will be a cost remain fixed and then you can build it on the platform which we have built across geographies.
Nitin Agarwal
Thank you so much. Best luck.
operator
Thank you. The next question is on the line of Harshad Doot from Diamond Asia Capital. Please go ahead.
Harshit Dhoot
Hi, good morning sir. Thanks a lot for the opportunity. So one question from my side on domestic sales. We have flogged a very good performance during the quarter at plucking at around 1300 crores out of sales. So is it fair to assume that anything is normalized and this guarantee sustainable in the domestic business.
Glenn Saldanha
As I said. See, India is a very strong market for us, right. We are among the fastest growing companies in India. I mean, if you look at December also, we grew at 19% when the market grew at 10, 11%. Right. So very strong numbers, right. Coming out of India. And I think, you know, for the next three to five years, India will be a strong growth market for us and especially when we launch these oncology products. Right. That will further give a good flip to the India growth. Right. So both chronic respiratory and oncology will drive India.
So you should see this run rate remain more or less at this level or keep growing from here. Right. As we go forward in the quarters ahead.
Harshit Dhoot
Okay, thank you. Also. Thank you.
operator
Thank you, ladies and gentlemen. And that was our last question. I now hand the conference over to Mr. Utkarish Gandhi for his closing comments.
Utkarsh Gandhi
Yeah, thank you. Quick reminder to everyone that the information, statements and analysis discussed during this call describing the company or its affiliates, objectives, projections and estimates are forward looking statements and these are based on current expectations, forecasts and assumptions and are subject to risk and uncertainties which could cause actual outcomes to materially differ. No representation, recommendation or warranty, either expressed or implied, is provided in relation to the conversation and the documents provided. And the company undertakes no obligation to update or revise any forward looking statements, whether because of new information, future events or otherwise. With that, we can close the Q3 earnings call.
Thank you everyone for joining joining us today. Thank you.
operator
Thank you members of the management team. Ladies and gentlemen, on behalf of Glenmark Pharmaceuticals Ltd. That concludes this conference call. We thank you for joining us and you may now disconnect your lines. Thank you.