Gland Pharma

“We will, of course, go by the earlier estimate, which is on track. We will update if there is any change later on. As of now, we are working on the same guidance.”

“We are initiating a brownfield capacity expansion program at our Pashamylaram facility.”

“We have acquired land for this purpose and working on the project plan.”

“We will seek approval from the Board for the additional capex towards this expansion in the coming quarter.”

“At Cenexi, planned investment, including the new vial and lyophilization block at BLA and the high-speed ampoule line at Fontenay, remain on track”

“Another brownfield project, we just got approval today.”

“Additional bag manufacturing capacity installed during the year is awaiting US FDA inspection, post which we could commercialize products from this line”

“And as we speak, we are actually struggling for a couple of, whether it is ophthalmic, whether it is bags, even now liquid vials, we are struggling for capacities.”

“During the quarter, we expanded our capabilities in respiratory products and secured manufacturing contracts for both microspheres and respiratory products.”

“There are three projects which are signed up. So the revenue is in the post 2029-2030.”

“Now, from a business perspective, we have signed several CDMO contracts which we need this capacity in two years from now because the tech transfer time takes that much time and get approvals.”

“While some may have take-or-pay, some may not have take-or-pay, but we do have contracts where it is getting transferred from sites which are already commercialized. We have pretty good view of the volumes and the forecast, what they have given and what they are selling today.”

“So initially, couple of years, it will be more tech transfer revenue we get. Once we get, these are royalty-based contracts what they have signed.”

“During the quarter, CDMO revenues grew 31% year-on-year to INR 8,227 million, contributing approximately 45% of total revenues.”

“Growth was driven by commercial supply of previously signed CDMO contracts, along with new launches from the segment and revenue from development and manufacturing partnerships entered in the quarter.”

“Improving capacity utilization, ongoing cost optimization, and increasing operating leverage are expected to restore profitability from Q3 onwards, in line with the positive performance of previous quarters.”

“while revenues from the critical injectables business grew 18% year-on-year to INR 10,109 million.”

“Revenues grew 42% year-on-year to INR 11,795 million. For the first half of FY2027, US revenues stood at INR 21,605 million, representing growth of 37% year-on-year.”

“However, demand fundamentals across our key emerging markets remain healthy, and we continue to see attractive long-term growth opportunities.”

“The market opportunity for high-quality sterile injectable outsourcing continues to expand globally, and we are witnessing strong interest from innovators and specialty pharmaceutical companies seeking reliable partners with proven regulatory and manufacturing capabilities.”

“Our gross margin for the quarter was 63%, and the first half it was 64%, same as the corresponding period last year.”

“Reported EBITDA for the quarter stood at INR 4,804 million, representing EBITDA margin of 26%, compared to approximately 21% in the corresponding quarter of the previous year.”

“Adjusted for non-cash ESOP expense of INR 226 million, adjusted EBITDA stood at INR 5,030 million, translating into adjusted EBITDA margin of 27%.”

“The effective tax rate for the quarter stood at approximately 33%, and that for the first half stood at approximately 30%.”

“As Cenexi's operating performance improves and profitability returns from Q3 onwards, we expect normalization of the overall effective tax rate going forward.”

“As of September 30th, 2026, cash and cash equivalents stood at INR 34,412 million. After adjusting for debt, the company maintained a robust net cash position of approximately INR 32,216 million.”

“Cash flow from operations during the first half of FY2027 stood at INR 6,027 million”

“Working capital days improved to 158 days, driven primarily by inventory optimization initiatives”

“During the quarter, we launched four products in the US market and continue to see additional opportunities for portfolio expansion and market share gains.”

“We have signed term sheet to in-license another long-acting injectable product from China. This is the second product we signed in the past two quarters.”

“One is, of course, as we've been saying, we want to acquire something in US on the biologic side.”

“Primarily, the idea is how to expand our business in India. Today, we do not have much presence here, and we do not want to enter with the generic products. It is very difficult to compete. The idea is to get the innovative products to Indian market.”

“we have just announced we got approval in methylprednisolone suspension also, which is a generic of Medrol from Pfizer. So that's also a large product.”

“As previously announced, Gland Pharma's new CEO, Mr. Deepak Sapra, will join Gland Pharma on November 16th, while Mr. Ajay Sahni has joined earlier this week as President of Cenexi operations”

“To improve investments and M&A capability, we will be onboarding a Chief Investment Officer based out of China to focus on China-based opportunities.”

“He also will be involved in in-licensing some complex products as well as some technologies from China. It's a global role, but based out of China because he has knowledge of the China landscape and the technologies there, as well as access to different markets.”

“In the recent quarter, to execute CDMO business contracts, we have strengthened our team and onboarded new head of tech transfer along with two senior people for project management.”

“Also, we now have onboarded head of strategy and innovative medicines in India and also business development head based out of China to focus on bringing innovative and specialty products from China to India.”

“This you cannot compare with the previous quarter because of the shutdown. One-month shutdown in Cenexi, the revenues are lower.”

“Performance was impacted by certain market-specific supply and tender-related dynamics, especially delay of announcement of NUPCO tender results from Saudi Arabia.”

“Our Dundigal facility also underwent a US FDA inspection during October and concluded with four procedural observations. Importantly, they were neither data integrity observations nor repeat observations.”

“But if you see the profitability side also, most of our import is also in dollars. So, maintaining the same thing, the same logic also applies. So instead of looking at the exact number, I would say that you can be guided on the basis of how generally the rate has moved. And typically, our 80% is our export.”

“During Q2 FY2027, we delivered revenue of INR 18,336 million, representing a growth of 23% year-on-year, while EBITDA increased by 53% year-on-year to INR 4,804 million.”

“Adjusted EBITDA stood at INR 5,030 million, with margins of 27%, and profit after tax grew 58% year-on-year to INR 2,908 million.”

“For H1 FY2027, revenues grew 21.4% year-on-year to INR 36,339 million.”

“our Vizag oncology facility successfully completed a US FDA inspection with zero observations”

“During the quarter, we spent INR 1,077 million, that is 6% of our revenues on R&D, and have filed 11 ANDAs, received 10 approvals, and launched four products in the US”