GlaxoSmithKline Pharmaceuticals Limited (GSK Pharma) reported flat revenue growth for the first quarter, as the company faced headwinds in its dermatology and anti-infective segments. Despite the challenging topline performance, the company improved its profitability and is set to launch its oncology portfolio in the coming quarter.

Q1 Financial Highlights

• Revenue growth remained flat, impacted by supply constraints and muted performance in key segments
• EBITDA margin improved to 31.20%, a 290 basis points increase
• Profit After Tax (PAT) grew by 12.70%
• Earnings Per Share (EPS) increased by 13.00% to Rs. 12.08

Key Factors Affecting Q1 Performance

• Supply constraints due to a fire incident at a Contract Manufacturing Organization (CMO) reduced growth by approximately 2.00%
• Muted performance in dermatology and anti-infective segments
• Delayed start to the monsoon season impacted antibiotic sales

Business Segment Performance

• Vaccine business grew by 8.60%
• General medicines business declined by 2.00%
• Shingrix (shingles vaccine) continues to show strong growth, with 9,000-10,000 doses administered monthly

Oncology Portfolio Launch

GSK Pharma is set to launch its oncology portfolio in the next quarter, marking its re-entry into the oncology space after nearly a decade. The company will introduce two innovative drugs:

1. Zejula (Niraparib): For ovarian cancer treatment

   • Target patient pool: Approximately 5,000 eligible patients
   • Competitive advantage: 40.00% overall survival rate at 5 years

2. Jemperli (Dostarlimab): For endometrial cancer treatment

   • Initial target: Second-line treatment for about 1,000 eligible patients
   • Future potential: Awaiting approval for first-line treatment

Future Outlook

• The company remains committed to achieving double-digit growth
• Expects normalization of supply for key brands like Calpol in the coming months
• Continues to invest in new growth platforms, including Shingrix, Nucala, and Trelegy Ellipta
• Plans to launch RSV vaccine in the future

Market Dynamics

• Approximately 40.00% of GSK Pharma's portfolio falls under the National List of Essential Medicines (NLEM)
• The company estimates that trade generics may impact 5-7% of the branded market volume in the near term

GSK Pharma's Managing Director, Bhushan Akshikar, expressed confidence in the company's growth strategy, stating, "We remain committed to our growth ambitions. With the base business expected to return to volume growth, price hikes kicking in, and new growth platforms including oncology, we are well-positioned for the future."

As GSK Pharma navigates through the challenges in its traditional segments, the launch of its oncology portfolio and continued focus on vaccines and specialty products are expected to drive growth in the coming quarters.

GlaxoSmithKline Pharmaceuticals Limited (GSK India) has announced its financial results for the first quarter of fiscal year 2026, showcasing improved profitability despite a slight decline in revenue. The pharmaceutical giant demonstrated resilience in a challenging market environment, with strategic focus on key segments driving growth.

Financial Highlights

GSK India reported a revenue of ₹805.00 crores for Q1 FY26, marking a marginal decline of 0.8% compared to the same period last year. However, the company's bottom line showed significant improvement:

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin expanded by 290 basis points to reach 25.6%. Similarly, the Profit After Tax (PAT) margin also improved by 290 basis points to 31.2%.

Segment Performance

General Medicine

This segment faced challenges due to softer seasonality and competitive pressures. Despite these headwinds, GSK's key promoted brands in General Medicine delivered competitive external performance, with several brands achieving market share gains and above-market growth.

Specialty Segment

Growth in this area was primarily driven by the company's dedicated respiratory focus team. The respiratory portfolio demonstrated strong performance with a Value Evolution Index (EI) of 109.

Vaccines

GSK India maintained its leadership in the pediatric vaccines market with a 20.8% market share. The pediatric vaccines portfolio showed growth, led by key brands such as Boostrix, Varilrix, and Havrix. Notably, the Varilrix and Fluarix vaccines reported impressive Value EIs of 108 and 115, respectively.

Adult Immunization

The company is making strides in establishing adult immunization as a category, particularly with its shingles vaccine, Shingrix. In Q1 FY26, Shingrix recorded approximately 38,000 prescriptions, representing a 24% quarter-on-quarter growth.

Strategic Initiatives

GSK India is preparing to launch two oncology products, Jemperli and Zejula, targeting gynecological cancers. This move aligns with the company's strategy to expand its presence in the oncology segment and address critical unmet needs in cancer treatment.

Management Commentary

Bhushan Akshikar, Managing Director of GlaxoSmithKline Pharmaceuticals Limited, stated, "GSK continues to invest in its innovative portfolio and is on track to launch the much-awaited oncology assets, Jemperli and Zejula. By launching these assets in India, GSK is addressing a critical unmet need amid a rising cancer burden and limited access to advanced therapies."

Outlook

While facing challenges in certain segments, GSK India's focus on specialty areas, vaccines, and upcoming oncology launches positions it for potential growth. The company's ability to improve profitability despite revenue pressures demonstrates effective cost management and a strategic shift towards higher-margin products.

As GSK India continues to navigate the competitive pharmaceutical landscape, investors and industry observers will be watching closely to see how its strategic initiatives in oncology and adult immunization unfold in the coming quarters.