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Informist, Monday, Aug. 3, 2026

By Gunjan Rajput and Narayana Krishna

HYDERABAD/NEW DELHI – Glenmark Pharmaceuticals Ltd. expects its Europe business, the company's fastest-growing market, to deliver a high double-digit growth in the financial year 2027-28 (Apr-Mar), driven by a continued focus on branded products, the management said during a post-earnings analyst call on Monday. Europe accounted for around 30% of the company's total sales in the June quarter. The company had reported Europe sales of INR 7.47 billion, up nearly 12% in the June quarter.

"The Europe business is expected to grow at a high single-digit rate this year before returning to double-digit growth from next year, as branded respiratory product launches gain scale," the management said, adding that the region has been the company's fastest-growing geography over the past four years. Branded products currently contribute around 30% of Glenmark's Europe revenue, and the company expects that share to rise to about 60% over the next five years, reflecting its strategy to shift towards higher-value products in the region. 

The management said it expects margin pressure to persist over the next two quarters due to the geopolitical situation, which has increased costs for active pharmaceutical ingredients, packaging materials, and logistics. However, the company retained its FY27  earnings before interest, tax, depreciation and amortisation margin guidance of 21-22%, as it expects a better product and geographical mix, supported by new product launches, to partly offset the impact of higher input costs.

"So we are seeing the cost pressure across. We are trying to mitigate it with through the better product mix and the better geographical mix so that we are trying to make and that's the reason you can see that the margin was impacted but not to the extent of the impact we are seeing across the API packing material, as well as the logistic cost," the management said. 

In the US, the company has initiated the commercialisation process for Ryaltris, its proprietary nasal spray for allergic rhinitis, and expects the strong sales growth recorded in the June quarter to continue over the next few quarters. Glenmark also plans to launch Ryaltris in Brazil during the Oct-Mar period and introduce the product in 10 new markets over the coming quarters as it expands its global footprint.

Ryaltris has now been commercialised in 57 markets, with launches in China and Thailand during Jan-Mar. The company has also initiated commercialisation of the product in the US and said secondary sales grew more than 40% in the June quarter, reflecting strong demand for the proprietary allergy nasal spray, according to the company's investor presentation, which was released on Friday.

The pharma company's consolidated net profit surged over 930% on year to INR 4.83 billion for the June quarter. Analysts had anticipated the bottom line between INR 4.70 billion and INR 5.36 billion. The company had reported a net profit of INR 469 million in the year-ago quarter. The consolidated revenue rose over 23% on year to INR 40.18 billion, which was once again in the range expected by the Street. Analysts had pegged the top line between INR 35.79 billion and INR 40.92 billion for the quarter. 

The management reiterated that research and development expenditure will remain at around 7-8% of sales, with innovation continuing to be a key long-term growth driver. The company had reported research and development at INR 2.5 billion for the June quarter.