Glenmark swings to loss as costs erase operating profit
Standalone expenses rose 26.73% year on year against 6.82% revenue growth, taking operating margin down 15.48 percentage points.
Filed 11 Jun 2026, 16:54 IST · after market close · Glenmark Pharmaceuticals Ltd (GLENMARK)
Key takeaways
- Standalone operating margin fell 15.48 percentage points year on year to 1.47% as expenses grew 26.73% against 6.82% revenue growth.
- Standalone net profit swung to a loss of Rs 73.90 cr from profit of Rs 147.76 cr a year earlier, with other income at negative Rs 60.88 cr.
- Glenmark's operating margin was 21.91 percentage points below the 23.38% median of 48 reported healthcare peers, ranking it lowest in the comparison.
Price around the results
Costs overwhelmed revenue growth in Q4FY26
Glenmark's standalone revenue rose 6.82% year on year, but expenses grew 26.73%, reducing operating profit by 90.74% to Rs 31.53 cr. The result was a net loss of Rs 73.90 cr versus net profit of Rs 147.76 cr in Q4FY25. Other income was negative Rs 60.88 cr and represented 56.69% of the pre-tax loss, while interest expense rose 36.41% year on year.
Margin fell for a second straight quarter
Sequentially, revenue declined 9.04% while expenses increased 13.45%, causing operating margin to narrow 19.54 percentage points to 1.47%. This was the second consecutive quarterly decline after the margin fell from 30.40% in Q1FY26 to negative 11.57% in Q2FY26, recovered to 21.01% in Q3FY26, and then weakened again in Q4FY26. The 31.19% tax rate was 12.59 percentage points above Q3FY26; with pre-tax profit negative, the negative Rs 33.49 cr tax line provided a tax benefit rather than driving the loss.
Glenmark was the weakest margin reporter among 48 peers
Glenmark's 1.47% standalone operating margin was 21.91 percentage points below the 23.38% median for 48 healthcare companies that had reported the same quarter. It ranked first from the bottom in that comparison. The sequential deterioration was sharper than the year-on-year decline, with operating margin down 19.54 percentage points versus 15.48 percentage points year on year.
Presentation flags respiratory expansion and new launches
The company presentation said Glenmark plans to expand its commercial Respiratory portfolio in FY27 and is targeting a Brazil launch for RYALTRIS. It also said RYALTRIS commercialisation has begun in the USA and that ISB 2301 has been selected as a clinical candidate advancing toward the clinic. For the reported quarter, the presentation said the Monroe manufacturing facility received a U.S. FDA inspection outcome with VAI classification.
The stock reaction was somewhat worse than its usual move
The stock fell 3.24% on the reaction day and was down 4.33% after five sessions, with trading volume at 2.58 times its reference level on the reaction day. That five-session decline was larger than the 3.84% median absolute move after the last eight results, during which the stock rose three times and fell five times.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,147 cr | ₹2,360 cr | -9.04% | +6.82% |
| Other income | ₹-61 cr | ₹-68 cr | +10.50% | +32.89% |
| Expenses | ₹2,115 cr | ₹1,864 cr | +13.45% | +26.73% |
| Operating profit | ₹32 cr | ₹496 cr | -93.64% | -90.74% |
| Operating margin (%) | 1.47% | 21.01% | — | — |
| Interest | ₹18 cr | ₹22 cr | -18.52% | +36.41% |
| Depreciation | ₹60 cr | ₹59 cr | +1.61% | +8.28% |
| Profit before tax | ₹-107 cr | ₹347 cr | — | — |
| Tax | ₹-33 cr | ₹64 cr | — | — |
| Net profit | ₹-74 cr | ₹282 cr | — | — |
| EPS (₹) | ₹-2.62 | ₹10.00 | — | — |
Operating margin of 1.47% compares with a Healthcare sector median of 23.38% across 48 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.24% | -2.54% |
| Next session | -3.97% | — |
| 5 sessions | -4.33% | -2.52% |
| 15 sessions | -3.65% | — |
| 30 sessions | +1.33% | — |
Volume on the results session was 2.58× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Monroe manufacturing facility received a U.S. FDA EIR with VAI classification.
Guidance & outlook
- Glenmark is planning to expand its commercial Respiratory portfolio in FY27.
- Glenmark is targeting a Brazil launch for RYALTRIS® in FY27.
Expansion
- Glenmark plans to expand its commercial Respiratory portfolio in FY27.
New initiatives
- Glenmark selected ISB 2301 as a clinical candidate and is advancing the programme toward the clinic.
- Glenmark initiated commercialisation of RYALTRIS® in the USA.
Competition
- Glenmark continues to be top-ranked in its core therapeutic areas in India.
What to watch
- Whether standalone operating margin recovers above 1.47% after the 19.54-percentage-point sequential decline.
- Whether expenses stop growing faster than revenue after rising 26.73% year on year against 6.82% revenue growth.
- Progress on the company's stated FY27 Respiratory portfolio expansion and Brazil launch for RYALTRIS.