Marksans Pharma Limited delivered robust Q3 FY26 financial results, achieving record quarterly operating revenue of INR 754.4 crores and demonstrating strong operational performance across key markets. The pharmaceutical company's earnings conference call on February 06, 2026, revealed sustained growth momentum despite pricing pressures in certain segments.

Financial Performance Highlights

The company's Q3 FY26 performance showcased significant improvements across multiple financial metrics. Operating revenue grew 10.6% year-on-year, marking an all-time high for the quarter despite high single-digit price erosion in prescription product segments.

Gross margins expanded significantly by 184 basis points to 58.1% compared to 56.2% in the previous year, attributed to softening raw material prices, favorable product mix, and foreign exchange benefits. EBITDA margins improved substantially by 217 basis points year-on-year to 21.3%.

Geographic Revenue Performance

The US and North American markets emerged as the primary growth driver, delivering strong performance supported by seasonal demand and robust order execution.

The UK and EU formulation business remained flat year-on-year as pricing pressures persisted, though the company reported sequential stability and recovery supported by new product launches and favorable currency movements.

Nine-Month Performance Overview

For the nine-month period ending December 2025, Marksans Pharma achieved operating revenue of INR 2,094.8 crores, up 9.4% from INR 1,914.4 crores in the corresponding period last year.

Strategic Expansion and Product Pipeline

The company strengthened its global footprint through strategic initiatives and regulatory approvals. Marksans incorporated new subsidiaries including Marksans Europe Limited in Ireland and Marksans Canada Inc., positioning for future growth in regulated markets.

Key regulatory achievements during the quarter included:

• MHRA market authorization for multiple products in the UK, including mefenamic acid tablets and cetirizine oral solutions
• USFDA approval for amide hydrochloride, enhancing presence in high-velocity OTC categories
• Continued focus on pain, allergy, GI, and cough and cold therapeutic segments

The company maintained a strong US order book exceeding $220 million, supporting future revenue visibility and growth prospects.

Financial Position and Outlook

Marksans Pharma continues to maintain a debt-free balance sheet with cash reserves of INR 824.2 crores as of December 31, 2025. The company invested INR 97 crores in capex during the nine-month period while maintaining steady working capital at 151 days.

Management outlined strategic milestones targeting INR 4,000 crores in revenue within the next 2-3 years, driven by current portfolio performance and market expansion initiatives. The company's R&D investment of 3% of consolidated revenue supports continued product pipeline development and regulatory filings across multiple geographies.

Marksans Pharma announced its Q3FY26 quarterly results, delivering strong financial performance with consolidated revenue of ₹754.4 crores and net profit of ₹113.7 crores. The pharmaceutical company's Board of Directors approved these unaudited financial results at their meeting held on February 5, 2026, demonstrating robust operational execution across key global markets.

Q3FY26 Financial Performance

The company reported consolidated revenue of ₹754.4 crores in Q3FY26, representing growth of 10.6% compared to ₹681.8 crores in Q3FY25. Net profit increased by 8.2% to ₹113.7 crores from ₹105.1 crores in the corresponding quarter of the previous year. The strong performance was driven by robust traction in US and UK markets, supported by new product launches and market share gains.

Margin Expansion and Profitability

Marksans Pharma achieved significant margin improvements during Q3FY26. EBITDA margin expanded to 21.3% from 19.1% in Q3FY25, marking an increase of 217 basis points. Gross margin improved to 58.1% from 56.2% year-on-year, reflecting benefits from soft raw material costs, favorable currency movements, and an improving product mix. The company maintained its net margin at 15.1% compared to 15.4% in the previous year.

Geographic Performance Analysis

The US & North America formulation business generated revenues of ₹412.4 crores in Q3FY26, contributing 54.7% to total revenue mix and showing growth of 16.9% year-on-year. UK and Europe operations reported revenues of ₹258.2 crores, representing 34.2% of revenue mix with marginal growth of 0.2%. Australia & New Zealand business achieved strong growth of 30.1% with revenues of ₹61.4 crores, while Rest of World markets contributed ₹22.4 crores.

Investor Conference Call and Corporate Communication

Following the announcement of Q3FY26 results, Marksans Pharma conducted an investor and analyst conference call on February 06, 2026. The company has made the audio recording of this earnings call available on its official website under the earnings call transcripts section. This communication was conducted in compliance with Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Regulatory Updates and Corporate Developments

The company's statutory auditors M S K A & Associates have converted from a partnership firm into a limited liability partnership firm, functioning under M S K A & Associates LLP, Chartered Accountants effective January 12, 2026. The auditors provided an unmodified opinion on the quarterly results. Subsequent to Q3FY26, Marksans Pharma incorporated two new wholly owned subsidiaries: Marksans Pharma (Europe) Limited in Ireland on January 16, 2026, and Marksans (Canada) Inc. in Canada on January 22, 2026.

Nine-Month Performance Overview

For 9MFY26, Marksans Pharma reported operating revenue of ₹2,094.8 crores, up 9.4% year-on-year, with EBITDA margin of 19.4% aligning with management guidance. The company generated cash from operations of ₹263.2 crores during the nine-month period and maintained a strong cash balance of ₹824.2 crores. Research and development spending reached ₹62.0 crores, representing 3.0% of consolidated revenue, supporting the company's innovation pipeline and future growth prospects.