Glenmark Pharmaceuticals Ltd. (NSE: GLENMARK) The Mumbai-based pharmaceutical company posts strong domestic and international sales as it transitions toward an innovation-driven portfolio. Operating margins expanded on disciplined execution across key therapeutic areas and the restart of U.S. manufacturing operations.
The company announced its financial results for the third quarter ended December 31, 2025, reporting a 15.1% year-on-year increase in consolidated revenue to ₹39,006 million. The company’s performance was characterized by double-digit growth in its core Indian market and a significant expansion in operating profit margins. Net profit for the period rose 15.9% to ₹4,032 million, reflecting improved momentum in global respiratory and oncology franchises.
Current Market Position
Current Stock Price:
- Approximately ₹1,060.00.
Market Capitalization:
- Approximately ₹299.12 billion ($3.59 billion).
Valuation:
- The stock trades at a trailing P/E of approximately 25.4x, reflecting investor expectations for the company’s transition toward an innovative portfolio.
Key Development
A primary driver for the company’s North American outlook is the receipt of an Establishment Inspection Report (EIR) from the U.S. Food and Drug Administration (FDA) for its manufacturing facility in Monroe, North Carolina. The facility was granted a Voluntary Action Indicated (VAI) status, allowing Glenmark to restart commercial manufacturing at the site. This development follows a period of regulatory review and is expected to facilitate the advancement of the company’s U.S. product pipeline, particularly in the respiratory segment.
Product Highlights
Glenmark introduced several first-in-class therapies during the quarter. In India, the company launched NEBZMART GFB Smartules and Glenmark AIRZ FB Smartules, which represent the world’s first nebulized fixed-dose triple therapy for Chronic Obstructive Pulmonary Disease (COPD).
The company’s global respiratory brand, RYALTRIS, recorded secondary sales growth of approximately 50% year-on-year and received approval in China, with a planned launch in Q1 FY27.
In the oncology segment, Glenmark entered into an exclusive agreement with Hansoh Pharmaceutical for Aumolertinib, a third-generation EGFR-TKI for lung cancer treatment, covering markets including the Middle East, Africa, and Russia.
Ichnos Glenmark Innovation (IGI) is advancing ISB 2001, a first-in-class trispecific antibody for multiple myeloma, currently in Phase 1 clinical trials.
Financial Performance
For the quarter ended December 31, 2025, Glenmark reported the following results:
• Consolidated Revenue: ₹39,006 million, up 15.1% from ₹33,876 million in the previous year.
• EBITDA: ₹8,697 million, representing 44.9% growth year-on-year.
• EBITDA Margin: 22.3%, compared to 17.7% in the corresponding quarter last year.
• Profit After Tax (PAT): ₹4,032 million, inclusive of an exceptional item of ₹1,843 million related to new Indian labor codes.
• Regional Growth: India formulations grew 22.1% to ₹12,986 million. North America revenue rose 24.2% to ₹9,706 million, though core business growth was 4.1% when excluding one-time out-licensing income for ISB 2001.
For the nine-month period ended December 31, 2025, consolidated revenue reached ₹132,119 million, a 31.3% increase over the prior year. However, full-year India revenue remained down 23.7% compared to the same nine-month period in the previous fiscal year.
Business Outlook & Strategy
Management aims to build a structurally stronger growth trajectory by focusing on innovative branded products in dermatology, respiratory, and oncology. The strategy involves scaling RYALTRIS globally and commercializing in-licensed assets like WINLEVI in Europe by Q1 FY27. The company is also prioritizing capital allocation toward its innovative pipeline through IGI, leveraging partnerships like the one established with AbbVie for the development of ISB 2001.
Sector & Macro Context
Glenmark continues to outperform the Indian Pharmaceutical Market (IPM). According to IQVIA data, Glenmark’s India formulations business grew 15.8% in the third quarter, significantly higher than the overall market growth of 10.9%. The company maintains high rankings in its core therapeutic areas, standing 2nd in Dermatology and 2nd in Respiratory in India. In Russia, the company’s secondary sales growth of 15% also exceeded the broader dermatology market.
Bull vs. Bear Investment Thesis
Bull Case
• Regulatory Recovery: The restart of the Monroe facility resolves a major U.S. regulatory overhang and provides a clear path for new product launches.
• Innovative Scaling: Strong global uptake of RYALTRIS and the introduction of first-in-class COPD therapies provide a differentiated competitive advantage in high-growth respiratory markets.
• Monetization of R&D: The $700 million upfront payment from AbbVie for ISB 2001 demonstrates the company’s ability to successfully out-license its innovative pipeline for significant capital inflows.
Bear Case
• Nine-Month Domestic Slump: Despite quarterly growth, India formulations revenue is down 23.7% for the nine-month period, indicating volatility in domestic performance.
• Reliance on Non-Core Income: A substantial portion of the North American revenue growth was driven by out-licensing income rather than core product sales, which grew at a more modest 4.1%.
• Exceptional Costs: Ongoing financial impacts from macro-regulatory changes, such as the New Labor Codes in India, continue to affect bottom-line margins.