GlaxoSmithKline Pharmaceuticals held its Q4 FY2026 and Full Year Earnings Call on May 13, 2026, with Managing Director Bhushan Akshikar and Chief Financial Officer Ronojit Biswas presenting the results to analysts and institutional investors. The meeting was conducted digitally and the transcript was uploaded to the company's investor relations page pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The outcome disclosure was signed by Ajay Nadkarni, Vice President – Administration, Real Estate & Company Secretary, on May 18, 2026.

Full Year Financial Performance

For the full year, GlaxoSmithKline Pharmaceuticals delivered profitable growth with meaningful margin expansion. The company crossed a significant milestone, recording its first-ever Profit After Tax (PAT) excluding exceptionals of more than INR1,000 crores. Key financial metrics for the full year are summarised below:

CFO Ronojit Biswas noted that top-line growth was muted due to disruption at a key Contract Manufacturing Organisation (CMO) following a fire, which largely impacted the general medicines portfolio. Despite this, promoted brands delivered competitive external performance and the company gained market share.

Q4 Standalone Performance

For the standalone quarter, sales were up 2%, EBITDA grew 5%, and PAT growth was at 6%. EBITDA margin for the quarter improved by 1 percentage point to 35%, supported by better gross margins and cost management. Management noted that headline sales were muted due to lingering supply constraints and delayed vaccine shipments, which are expected to shift into the June quarter.

Management indicated that supply constraints shaved off approximately 3% to 3.5% of top-line growth for the quarter, with part of the impact attributed to phasing of vaccine consignments that arrived in March but could not be cleared by regulatory agencies in time, spilling over into Q1 of the new financial year.

Business Segment Highlights

Across its three business pillars — General Medicines (GenMed), Vaccines, and Specialty — performance was mixed but broadly in line with management expectations.

General Medicines: The GenMed portfolio remained broadly flat for FY2026, with supply constraints accounting for a loss of more than INR100 crores in revenue. Promoted brands such as Augmentin and Calpol grew 3 to 4 percentage points ahead of the market. Tail-end and distributed brands, including Eltroxin, saw softer demand. Management estimated that underlying GenMed growth, adjusting for supply disruptions, would have been in the range of 3% to 4%.

Vaccines: The vaccines portfolio delivered blended double-digit growth in excess of 11% to 12% for FY2026. Pediatric vaccines were up 9%, maintaining market leadership in the private vaccines segment. The adult vaccine Shingrix continued strong prescription growth, with management pivoting to a new cardiovascular metabolic strategy leveraging the linkage between cardiovascular metabolic disease and herpes prevention.

Specialty: The specialty portfolio, comprising the respiratory products Trelegy Ellipta and Nucala, and oncology assets Zejula (ovarian cancer) and Jemperli (endometrial cancer), grew significantly on a smaller base. The innovative portfolio now contributes approximately 6% of top-line sales, up from approximately 2% on a like-for-like basis. Nucala has been clocking more than 100 to 120 new patients per month. Trelegy Ellipta has maintained and grown patient share and market share despite 8 to 10 generic versions being launched over the past approximately 10 months.

Pipeline and New Launches

GlaxoSmithKline Pharmaceuticals highlighted a robust pipeline with 26 ongoing clinical trials, including 14 studies in India. Key pipeline and launch updates include:

Management noted that for multiple myeloma, India has approximately 18,000 new cases annually, with a prevalence of approximately 40,000 to 45,000 patients at any given time. The launch lag for Blenrep between the US and India has been reduced to approximately 6 to 8 months.

Margin Expansion and Cost Management

CFO Ronojit Biswas outlined three key levers that drove gross margin improvement: a conscious shift in portfolio mix away from price-controlled products, competitive pricing in line with peers, and active cost-of-goods reduction for NLEM products through sourcing changes and forward contracts. SG&A efficiencies were driven by field force productivity improvements and AI-led optimisation. EBITDA margins have improved from approximately 24% four years ago to 34% for the full year and 35% for the current quarter.

Management noted that approximately 40% of the business remains covered under the National List of Essential Medicines (NLEM). On pricing, management stated that agreements are in place to protect against raw material and packaging material cost volatility for the next 12 to 18 months. The company's stated priority is top-line growth, with a focus on maintaining current margin levels while reinvesting in new launches and innovative therapies.

Outlook and Strategic Priorities

Management reaffirmed the ambition of double-digit top-line growth, supported by the resolution of supply constraints, the ramp-up of the innovative portfolio, and multiple planned launches in the coming financial year. Key strategic priorities include driving top-line growth, accelerating the launch of innovative medicines and vaccines with reduced launch lag, and embedding GenAI and digital ways of working to improve efficiency across the value chain. Management guided that the GenMed business should return to growth in the range of 6% to 8%, and the vaccines business should deliver strong high-double-digit numbers in the coming financial year.

GlaxoSmithKline Pharmaceuticals Limited announced its financial results for the fourth quarter and full year ended 31st March 2026, with the audited results subsequently published as advertisements in Economic Times, Business Standard, and Maharashtra Times pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company continued its trajectory of profitable growth and margin expansion, driven by pricing measures, focused investments in innovative therapies, improved field force productivity, AI-led optimisation, and disciplined cost management. Full year revenue stood at INR 3790 crores, a growth of 2%, while Profit After Tax (PAT) increased by 10% to INR 1012 crores and EBITDA margins expanded by 290 basis points to 34%. For the quarter ending 31st March 2026, revenue stood at INR 989 crores and PAT at INR 275 crores, with Q4 EBITDA margins improving by 90 basis points to 35%. The results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 13th May 2026, with statutory auditors Deloitte Haskins & Sells LLP issuing an unmodified opinion on both standalone and consolidated financial results.

Financial Highlights

The company's financial performance reflected disciplined cost management alongside revenue growth. The standalone and consolidated financials are summarised below:

The company also noted that supply chain disruptions during the year constrained the availability of certain key products, leading to a material impact on topline growth. These challenges have accelerated efforts to strengthen supply chain resilience through enhanced contingency planning, diversified sourcing, and improved end-to-end visibility. On the labour front, the Government of India notified four Labour Codes consolidating 29 existing labour laws, which resulted in an increase of Rs. 1182 lakhs in Employee Benefits expense for the year ended 31st March 2026, primarily due to a change in wage definition.

Portfolio Performance Highlights

The General Medicines portfolio delivered competitive performance during the quarter, with the top 4 promoted brands growing ahead of the market (Evolution Index >100; Source: IQVIA). Key promoted brands such as Augmentin, Calpol, and T-Bact continued to reinforce their leadership positions in their respective categories, while the tail-end distributed portfolio saw significant headwinds. The Vaccines business grew on strong demand and continued leadership in the self-pay private paediatric vaccines market. Shingrix achieved critical mass with 55k prescriptions, reflecting 56% year-on-year growth, as increasing awareness of preventive healthcare and adult immunisation translated into positive outcomes.

The Oncology business, led by specialised therapies Jemperli (dostarlimab) and Zejula (niraparib), tracked strongly during the year. A key milestone was Jemperli's first-line approval by Indian regulators for primary advanced and recurrent endometrial cancer, significantly expanding the eligible patient population. The innovative portfolio contributed 6% to total sales in Q4. Additionally, the company received market authorisation in India for Blenrep (belantamab mafodotin), an anti-BCMA ADC therapy indicated for relapsed or refractory multiple myeloma in adults. Multiple myeloma is the third most common blood cancer globally, with approximately 180,000 new cases a year. Launch plans will be announced at an appropriate time.

Management Commentary

Commenting on the full-year results, Mr. Bhushan Akshikar, Managing Director, GSK India, said: "The strong delivery of our Oncology portfolio signals a key inflection point in GSK India's journey to evolve into an innovation-led company, focused on areas of high unmet medical need. Our progress is underpinned by scientific rigour, disciplined execution and an unwavering commitment to our patients in India. Building on this momentum, we will continue to invest in innovative, high-growth therapy areas to make a positive impact at scale. Our ambition is driven by a sharp focus on topline growth and sustainable profitability."

Corporate Actions

The Board of Directors has recommended a final dividend of Rs. 57 per equity share of face value Rs. 10 each for the year ended 31st March 2026, compared to a total dividend of Rs. 54 per equity share (including a final dividend of Rs. 42 per equity share) for the year ended 31st March 2025. This is subject to shareholder approval at the 101st Annual General Meeting. If approved, dividend payment will be made on and after Wednesday, 1st July 2026.