Glenmark Pharmaceuticals Reports 86% YoY Decline in Q1 Profit on US Settlement Provision

Glenmark Pharmaceuticals reported an 86% YoY decline in consolidated net profit to ₹46.8 crore for Q1 FY26 due to a $37.75 million provision to settle a US antitrust and consumer protection lawsuit. Revenue from operations rose marginally by 0.6% to ₹3,264 crore. The company expects double-digit growth in emerging markets on a constant currency basis.

Glenmark Pharmaceuticals reported an 86% year-on-year (YoY) decline in consolidated net profit to ₹46.8 crore for the first quarter of the financial year 2025-26 (Q1 FY26), according to its recent financial results. The sharp fall in profits was attributed to a provision of $37.75 million made by Glenmark to settle a US antitrust and consumer protection lawsuit with a putative direct purchaser class, subject to court approval [2].

Despite the significant drop in net profit, revenue from operations rose marginally by 0.6% to ₹3,264 crore. This increase was driven by a 0.3% year-on-year decline in the North America business and a 0.2% year-on-year increase in emerging markets, while the European market saw a 4% decline [2].

The company's Chairman and Managing Director, Glenn Saldanha, expressed confidence in the company's strategy, stating that the recent IGI–AbbVie global licensing agreement for ISB 2001 is a strong validation of its innovation capabilities. He also noted that the company remains confident in its strategy to drive growth across its markets while advancing its branded, specialty, and innovative products [2].

Glenmark's strategic global expansion, particularly in emerging markets, is expected to be a significant revenue catalyst. The company anticipates double-digit growth in emerging markets on a constant currency basis, driven by robust sales in India and other regions [3].

References

[1] https://www.business-standard.com/companies/quarterly-results/glenmark-pharma-q1fy26-profit-declines-revenue-down-125081401639_1.html
[2] https://www.business-standard.com/companies/news/glenmark-q1-profit-tanks-86-on-us-settlement-hit-revenue-stays-flat-125081401850_1.html
[3] https://www.ainvest.com/news/glenmark-pharma-strategic-global-expansion-revenue-catalysts-deep-dive-long-term-growth-opportunities-2508/