Marksans Pharma (MARKSANS) Q1 26/27 earnings summary

Executive summary

• Q1 FY 2027 delivered record revenue of INR 841 crores, up 35.6% year-on-year, with highest ever quarterly EBITDA of INR 213 crores and PAT of INR 159 crores; cash balance crossed INR 1,000 crores for the first time.

• UK & Europe revenue surged 74.7% year-on-year to INR 356 crores, with QliniQ contributing INR 44 crores; Europe is now a key growth engine.

• Profit after tax for the quarter was INR 1,594.07 million, up from INR 582.02 million year-over-year.

• Strategic investments in products, manufacturing, and international presence are translating into growth, profitability, and cash generation.

• The quarter saw the acquisition of QliniQ B.V. in the Netherlands and a post-quarter agreement to acquire ABCnow GmbH in Germany, expanding European market presence.

Financial highlights

• Operating revenue for Q1 FY 2027 was INR 840.8 crores, up 35.6% year-on-year; North America contributed INR 377 crores (+15.1% y-o-y), UK & Europe INR 356 crores (+74.7% y-o-y), Australia/NZ INR 88 crores (+33.7% y-o-y).

• Gross profit rose to INR 497.3 crores (+38.9% y-o-y), with gross margin improving to 59.1% (+138 bps y-o-y).

• EBITDA reached INR 213 crores (+112.8% y-o-y), with margin expanding to 25.3% (+919 bps y-o-y).

• PAT was INR 159.4 crores (+173.9% y-o-y), PAT margin at 18.4% (+910 bps y-o-y).

• Earnings per share (EPS) for the quarter was INR 3.47, compared to INR 1.29 in the same quarter last year.

Outlook and guidance

• Management maintains FY 2027 guidance of 15%-20% revenue growth and 20%-21% EBITDA margin, citing geopolitical volatility.

• Revenue and profitability momentum expected to continue, with Q2 and Q3 anticipated to be stronger than Q1.

• Targeting INR 4,000 crores revenue within two years and doubling revenue within five years.

• Europe expected to reach EUR 180 million revenue in FY 2027 and INR 1,000 crores within five years.

• Recent acquisitions in the Netherlands and Germany are expected to strengthen the company’s European footprint and distribution capabilities.