Marksans Pharma Q1 Profit Soars 174% to Rs 159 Crore, EBITDA Doubles, Cash Crosses Rs 1,000 Crore

The company's gross profit stood at ₹497.3 crore, up 38.9% year-on-year, with the gross margin improving to 59.1% from 57.8% in Q1FY26. EBITDA increased from ₹100.1 crore in Q1FY26 to ₹213 crore, taking the EBITDA margin to 25.3% from 16.1%. PAT rose from ₹58.2 crore to ₹159.4 crore, while the net margin improved from 9.3% to 18.4%. Earnings per share (EPS) stood at ₹3.5, compared with ₹1.3 in the corresponding quarter last year.

Mark Saldanha, Managing Director of Marksans Pharma, said Q1FY27 marked a strong start to the year, with all-time high quarterly EBITDA of ₹213 crore and PAT of ₹159 crore, reflecting the strength of the company's underlying business and its continued focus on profitable growth. He said the UK and Europe business recorded its highest-ever quarterly revenue of ₹356 crore, growing 74.7% year-on-year. According to Saldanha, Europe is emerging as a significant new growth engine for the Group following the acquisition of QliniQ and establishment of a front-end presence across the region.

QliniQ contributed ₹44 crore to Q1FY27 revenue, marking an initial step in Marksans Pharma's European expansion. The company also crossed the ₹1,000 crore cash-balance mark for the first time, closing the quarter with ₹1,058 crore, despite its recent acquisitions of QliniQ and ABCnow. Saldanha said the cash position provides the company with financial strength and flexibility to continue investing in organic growth while pursuing calibrated inorganic opportunities. He added that the company's focus is to maintain the momentum, scale businesses across geographies, accelerate new launches and further strengthen its European platform.

In the US and North America formulation business, revenue stood at ₹377.2 crore, representing 15.1% year-on-year growth. The US and North America remained Marksans Pharma's largest market, contributing approximately 44.9% of consolidated revenue. Growth was supported by a healthy order book, with new launches strengthening the product pipeline.

The UK and Europe formulation business generated ₹356 crore, up 74.7% year-on-year and representing the region's highest-ever quarterly revenue. The UK recorded its strongest quarter, supported by new product launches and continued market-share gains, while a strong order pipeline supported the outlook. Revenue from the European Union commenced ahead of the Q2FY27 timeline, with QliniQ B.V. of the Netherlands contributing ₹44 crore during Q1FY27.

The Australia and New Zealand businesses recorded revenue of ₹87.6 crore, an increase of 53.7% year-on-year. The growth was supported by continued portfolio expansion and new product launches. The Rest of World (RoW) business generated ₹20 crore, down 36.8% year-on-year but up 6% sequentially, marking its first sequential improvement in four quarters. Middle East shipments were affected by delays, while improving geopolitical conditions could support recovery in the coming quarters.

Marksans Pharma generated ₹185 crore in cash from operations during Q1FY27. The company incurred net capital expenditure of ₹33 crore, resulting in free cash flow of ₹152 crore. Its working-capital cycle stood at approximately 132 days, improving from around 159 days in Q1FY26. The company closed June 30, 2026, with a cash balance of ₹1,058 crore and net cash of ₹1,031 crore.

The company spent ₹23 crore on research and development during Q1FY27, equivalent to 2.8% of consolidated revenue. During the quarter, Marksans Pharma completed the acquisition of 100% of QliniQ B.V. and ABCnow in Europe. India Ratings and Research, part of the Fitch Group, revised the outlook on the company's bank loan facilities to Positive from Stable, while affirming the ratings at IND AA-/IND A1+.

On a consolidated basis, operating revenue stood at ₹840.8 crore in Q1FY27, compared with ₹620 crore in Q1FY26 and ₹856.1 crore in Q4FY26, representing 35.6% year-on-year growth and a 1.8% sequential decline. Gross profit increased to ₹497.3 crore from ₹358.2 crore a year earlier and ₹465.5 crore in the preceding quarter, reflecting 38.9% year-on-year and 6.8% quarter-on-quarter growth. The gross margin improved by 138 basis points year-on-year and 478 basis points sequentially.

EBITDA of ₹213 crore represented 112.8% year-on-year and 9% quarter-on-quarter growth, while the EBITDA margin improved by 919 basis points year-on-year to 25.3% and by 251 basis points sequentially. PAT of ₹159.4 crore increased 173.9% year-on-year and 7% quarter-on-quarter, with the net margin rising by 910 basis points year-on-year and 168 basis points sequentially to 18.4%. EPS of ₹3.5 increased 169.5% year-on-year and 6.1% quarter-on-quarter.

On a business-wise basis, US and North America contributed ₹377.2 crore, compared with ₹327.6 crore in Q1FY26 and ₹406.2 crore in Q4FY26, representing 15.1% year-on-year growth, a 7.1% sequential decline and a 44.9% revenue mix. UK and Europe generated ₹356 crore against ₹203.8 crore in Q1FY26 and ₹307.7 crore in Q4FY26, representing 74.7% year-on-year and 15.7% sequential growth, with a 42.3% revenue mix. Australia and New Zealand recorded ₹87.6 crore compared with ₹57 crore a year earlier and ₹123.4 crore in Q4FY26, representing 53.7% year-on-year growth, a 29% sequential decline and a 10.4% revenue mix. RoW contributed ₹20 crore against ₹31.6 crore in Q1FY26 and ₹18.9 crore in Q4FY26, representing a 36.8% year-on-year decline, 6% sequential growth and a 2.4% revenue mix.

Marksans Pharma Limited, headquartered in Mumbai, India, is engaged in the research, manufacturing and marketing of generic pharmaceutical formulations in global markets. Its manufacturing facilities are approved by leading regulatory agencies including the USFDA, UKMHRA and Australian TGA. The company's product portfolio covers major therapeutic segments including cardiovascular system (CVS), central nervous system (CNS), antidiabetic, pain management, gastroenterological and anti-allergy products, which it markets globally.

The company has also stated that certain statements concerning its business strategies, operations, financial condition and future performance are forward-looking statements based on current expectations, assumptions and estimates and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially.

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