Gland Pharma's quarterly profit surged as high-margin outsourcing orders flooded its order book. Net profit jumped 58.2% to ₹291 crore for the second quarter of FY27, up from ₹184 crore a year earlier, according to the drugmaker's regulatory filing. Revenue climbed 23.3% to ₹1,834 crore. On the BSE, shares closed up ₹22.70, or 0.72%, at ₹3,170.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) leaped 54.1% to ₹484 crore from ₹314 crore. Operating leverage kicked in hard. Operating EBITDA margin widened 530 basis points to 26.4%, while the adjusted EBITDA margin settled at 27%. Net profit margin expanded roughly 350 basis points. The balance sheet absorbed heavier product development costs without breaking stride—research and development expenditure grew to ₹107.7 crore, soaking up 6% of consolidated quarterly revenue as laboratories accelerated filings for complex injectables.
CDMO contracts drove the bulk of the acceleration. The contract development and manufacturing organisation segment delivered 45% of total quarterly revenue, clocking 31% year-on-year growth. The baseline critical injectables arm brought in the remaining 55%, expanding 18%. In the United States, commercial teams rolled out four fresh molecules during the quarter: Sugammadex, Erythromycin, Fluorouracil, and Atropine Sulfate. Regulatory traction mirrored the commercial push, with 10 Abbreviated New Drug Application (ANDA) approvals clearing against 11 fresh submissions.
| Financial Metric | Q2 FY27 | Q2 FY26 | YoY Change (%) |
|---|---|---|---|
| Revenue | ₹1,834 crore | ₹1,487 crore | +23.3% |
| EBITDA | ₹484 crore | ₹314 crore | +54.1% |
| EBITDA Margin | 26.4% | 21.1% | +530 bps |
| Net Profit (PAT) | ₹291 crore | ₹184 crore | +58.2% |
| R&D Investment | ₹107.7 crore | ₹81.7 crore | +31.8% |
Execution across both production lines and client transfers supported the widening spread, according to Srinivas Sadu, Executive Chairman of Gland Pharma. Sadu noted in the filing that expanding customer commitments and contract manufacturing transfers drove the double-digit top-line gains, giving the business headroom to absorb global outsourcing volume. Technology transfer operations with an unnamed global pharmaceutical major expanded during the quarter with additional product dossiers, alongside new contracts for microspheres and respiratory assets.
Regulatory scrutiny delivered a clean ledger at the Hyderabad-based group's primary hubs. US FDA inspectors cleared the VSEZ facility with zero observations during the quarter, while a separate audit of the Dundigal site concluded in October 2026 with four procedural observations. Gland Pharma's cumulative US regulatory account now stands at 399 ANDA filings, with 350 cleared and 49 pending.
Yet the real test arrives further down the pipeline. Gland Pharma holds 24 Ready-to-Use infusion bag filings, with 18 approvals secured to contest a $640 million addressable market in the US. A separate clutch of 15 co-development partnerships—spanning seven 505 regulatory pathways and eight ANDAs—remains on track to start commercialisation in FY29.