Gland Pharma Q1 FY27 Results (NSE: GLAND)
Signal: Margin expansion
The read
The key inflection is sustained margin recovery: consolidated EBITDA margin rose to 30.6% from 24.0% in Q1FY26 and 29% in Q4FY26, while revenue grew 19.6% YoY to ₹18002.71 million; however, standalone PAT of ₹3643.9 million exceeding consolidated PAT by ₹474.31 million keeps subsidiary execution as the main thesis variable.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,800.27 Cr | 19.6% | +3.3% |
| EBIT | ₹439.34 Cr | 35.5% | |
| Net profit | ₹316.96 Cr | 47.1% | |
| EPS | ₹19.23 | 47.0% | |
| EBIT margin | 30.6% |
P&L walk
Consolidated revenue increased to ₹18002.71 million (+19.6% YoY, +3.3% QoQ), EBITDA rose to ₹5506.0 million (+29.5% YoY) and margin reached 30.6%, while PAT grew 47.1% to ₹3169.59 million; the margin recovery continued despite the group subsidiaries dragging earnings below standalone performance.
Segments
The parent materially outperformed the group: standalone PAT was ₹3643.9 million (+35.3% YoY) versus consolidated PAT of ₹3169.59 million (+47.1%), implying a ₹474.31 million subsidiary drag despite consolidated revenue of ₹18002.71 million.
Key positives
- Consolidated revenue reached ₹18002.71 million, up 19.6% YoY and 3.3% QoQ, extending the recovery from ₹15056.22 million in Q1FY26.
- EBITDA increased 29.5% YoY to ₹5506.0 million and EBITDA margin expanded to 30.6% from 24.0% in Q1FY26.
- Raw-material consumption declined to 32.7% of revenue from 37.0% YoY, while employee cost grew only 8.8% versus 19.6% revenue growth.
- EPS rose 47.0% YoY to ₹19.23, closely tracking the 47.1% PAT increase.
Key concerns
- Standalone PAT of ₹3643.9 million was ₹474.31 million above consolidated PAT of ₹3169.59 million, showing that subsidiaries continue to dilute parent-level operating performance.
- The filing does not disclose the business or geographic drivers behind the 19.6% consolidated revenue growth or the 660bps EBITDA-margin expansion.
- Two subsidiaries' financial information was reviewed by other auditors, while two immaterial subsidiaries' information was not reviewed and reflected total revenue of ₹0 and loss after tax of ₹1.78 million.
Research and educational content only. Not investment advice.