Gland Pharma Limited, a leading injectable-focused pharmaceutical company, reported a 6% year-on-year increase in consolidated revenue for the second quarter of fiscal year 2026 (Q2FY26). The company's performance was driven by strong growth in regulated markets and improved profitability in its core business.

Key Financial Highlights

• For H1FY26, consolidated revenue was INR 29,925.00 million, reflecting a 7% increase over H1FY25.
• H1FY26 EBITDA was INR 6,817.00 million with a margin of 23%, up from 20% in the previous year.

Market Performance

United States

• U.S. revenue rose 8% year-on-year to INR 8,005.00 million for Q2FY26.
• Seven new molecules were launched in Q2, including Daptomycin-RTU and Sumatriptan.
• The company's top 20 molecules grew by 9% on a year-to-date basis, while the top 10 molecules grew by 14%.

Other Regulated Markets

• Revenue from Europe, Canada, Australia, and New Zealand reached INR 1,574.00 million for H1FY26, growing 18% year-on-year.

Rest of World (ROW)

• ROW market contributed INR 1,635.00 million in Q2FY26 and INR 3,168.00 million in H1FY26.
• Own product sales revenue in ROW grew by 19% in H1FY26, while tech transfer and CMO product revenue declined by 53%.

Cenexi Performance

Cenexi, Gland Pharma's European subsidiary, showed improvement despite a planned shutdown in Q2:

• Reported revenue of EUR 88.00 million for H1FY26, marking a 10% year-over-year growth in euro terms.
• EBITDA losses decreased to EUR 5.00 million from EUR 11.00 million in the previous year.
• The company remains confident in achieving EBITDA breakeven for Cenexi in Q3FY26.

Strategic Initiatives and Future Outlook

Gland Pharma is focusing on several strategic initiatives to drive growth and improve profitability:

1. Expanding into complex and differentiated portfolios, including long-acting injectables, hormones, and peptides.
2. Investing in R&D (5.8% of revenue in Q2) to develop complex injectables and next-generation delivery systems.
3. Increasing cartridge fill/finish capacity from 40 million to 140 million units to support GLP-1 and insulin programs.
4. Expanding biologic CDMO capacity from 8 KL to 23 KL to support biosimilar and biologic fill/finish opportunities.
5. Optimizing product mix and deepening integration with Cenexi to capture operational synergies.

The company maintains its guidance for mid-teen consolidated revenue growth for FY26, supported by new product launches and continued improvement at Cenexi.

Management Commentary

Srinivas Sadu, Executive Chairman of Gland Pharma, stated, "Our strategic focus is clear to build Gland Pharma into a global innovation-led injectable and CDMO company that consistently delivers growth, margin expansion and superior capital efficiency."

Shyamakant Giri, CEO, added, "With our current momentum, we are confident in robust growth in the second half of FY '26."

As Gland Pharma continues to expand its capabilities in complex injectables and CDMO services, the company appears well-positioned to capitalize on growth opportunities in the global pharmaceutical market.

Gland Pharma , a leading injectable-focused pharmaceutical company, has announced plans to significantly increase its GLP-1/cartridge production capacity from the current 40 million units to 140 million units. This expansion represents a substantial 250% boost in manufacturing capabilities for the company's GLP-1 and cartridge product lines.

Expanding Capabilities in High-Growth Segment

The move comes as Gland Pharma positions itself to capitalize on the growing demand for GLP-1 (glucagon-like peptide-1) products, which are increasingly used in the treatment of type 2 diabetes and obesity. The company launched its first partnered GLP-1, Liraglutide, marking its entry into this high-potential market segment.

Strategic Investment for Future Growth

Srinivas Sadu, Executive Chairman of Gland Pharma, commented on the expansion: "Our investments in global CDMO expansion, capacity enhancement in high-end modalities and complex injectables pipeline continue to strengthen our foundation and support sustainable growth and long-term value for all stakeholders."

This capacity expansion aligns with Gland Pharma's strategy to diversify its product portfolio and tap into emerging pharmaceutical trends. The company is also exploring opportunities beyond GLP-1s, indicating a broader focus on innovative injectable therapies.

Financial Performance Supports Expansion

The announcement comes alongside Gland Pharma's financial results. Key highlights include:

The company's solid financial performance provides a strong foundation for this significant capacity expansion.

R&D Investment Underscores Innovation Focus

Gland Pharma's commitment to innovation is evident in its increased R&D expenses, which rose to ₹614 million, representing 5.8% of revenue. This investment in research and development supports the company's efforts to expand its complex injectables pipeline and explore new opportunities in areas like GLP-1 therapies.

Market Outlook and Growth Projections

Gland Pharma expects improved growth in the second half driven by new product launches and recovery at Cenexi. The company anticipates these factors will contribute to enhanced performance in the coming period. Additionally, Gland Pharma expects mid-to-high single-digit revenue growth driven by complex injectables, biosimilars, and contract development and manufacturing organization (CDMO) scaling. The company is expanding its manufacturing capabilities in India while broadening global product launches across the United States, Europe, and emerging markets.

The expansion of GLP-1/cartridge production capacity positions Gland Pharma to meet the rising global demand for these products. With the global GLP-1 market projected to grow significantly in the coming years, this move could potentially drive substantial revenue growth for the company.

Shyamakant Giri, Chief Executive Officer of Gland Pharma, expressed optimism about the company's trajectory: "With the current momentum, we anticipate robust growth in the upcoming quarters."

As Gland Pharma executes this expansion plan, it aims to strengthen its position in the injectable pharmaceuticals market and capitalize on the growing demand for GLP-1 therapies. The company's strategic investments in capacity and R&D are expected to drive long-term growth and enhance its competitive position in the global pharmaceutical landscape.