Glaxosmi. Pharma Q1 FY27 Results (NSE: GLAXO)
Signal: Growth reaccelerated
The read
Revenue grew 16.6% YoY, PAT up 15.7%, with EBITDA margin expanding 49bps YoY to 31.5% — the 9th consecutive quarter of YoY margin expansion, though sequential decline from Q4FY26 levels reflects normal seasonality. Management change: Mr. Subesh Williams resigned, Ms. Karine Natland appointed as Non-Executive Director.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹938.44 Cr | 16.6% | -5.7% |
| EBIT | ₹295.5 Cr | 17.6% | |
| Net profit | ₹237.18 Cr | 15.7% | |
| EPS | ₹14 | 15.7% | |
| EBIT margin | 31.5% |
P&L walk
Revenue grew 16.6% YoY to ₹938.4 Cr, driven by underlying demand; sequentially down 5.7% reflecting typical Q1 seasonality from Q4's high base. Gross margin expanded 79bps YoY to 65.1% on favorable mix and input cost moderation. EBITDA margin rose 49bps YoY to 31.5%, marking the 9th consecutive quarter of YoY expansion, though down from Q4FY26's 35% due to normal seasonal drop. Employee cost ratio improved 200bps YoY, but other expenses increased 250bps as a % of revenue. PAT grew 15.7% YoY, broadly tracking operating profit.
Key positives
- Revenue grew 16.6% YoY, consistent mid-teens growth.
- EBITDA margin expanded 49bps YoY to 31.5%, 9th consecutive quarter of YoY expansion.
- Employee cost ratio improved 200bps YoY, indicating operating efficiency.
- PAT grew 15.7% YoY with no exceptional items.
Key concerns
- Sequential revenue declined 5.7% and EBITDA margin dropped 351bps from Q4FY26, partly seasonal.
- Other expenses grew 37.2% YoY, outpacing revenue and raising cost ratio by 250bps.
- Other income flat YoY, providing no tailwind.
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