Marksans Pharma Q2 FY27 results: net profit up 44.8% to ₹143.53 crore, revenue up 30.5%

How did Marksans Pharma perform in Q2 FY27?

Marksans Pharma reported consolidated revenue of ₹940.17 crore for Q2 FY27, the July–September 2026 quarter, up 30.5% from ₹720.41 crore in the year-ago quarter. Total income rose 29.2% to ₹958.32 crore, while EBITDA increased 48.3% to ₹214.29 crore and the EBITDA margin widened by 2.7 percentage points to 22.8%. Profit before tax was ₹193.50 crore, up 45.1% from ₹133.33 crore, and tax was ₹49.98 crore against ₹34.20 crore.

Against the previous quarter, revenue rose 11.8% from ₹840.80 crore and total income rose 10.6% to ₹958.32 crore. EBITDA was nearly unchanged at ₹214.29 crore, up 0.6% from ₹213.04 crore, as the margin fell 2.5 percentage points to 22.8% from 25.3%. Profit before tax fell 6.3% to ₹193.50 crore and net profit fell 10.0% to ₹143.53 crore from ₹159.41 crore, while basic EPS fell to ₹3.12 from ₹3.47. On the standalone basis, revenue was ₹313.8 crore and profit before tax was ₹99.81 crore.

What changed in Marksans Pharma's costs and profit?

Total expenses rose 25.7% to ₹764.82 crore from ₹608.65 crore in Q2 FY26, but the increase was below the 30.5% revenue growth. Cost of materials edged up 1.7% to ₹231.49 crore, employee cost rose 17.8% to ₹122.31 crore, finance costs rose 17.4% to ₹6.83 crore and depreciation rose 19.3% to ₹32.11 crore. Other expenses rose 30.6% to ₹213.49 crore from ₹163.52 crore.

Other income fell 15.9% to ₹18.15 crore from ₹21.57 crore, while tax rose 46.1% to ₹49.98 crore from ₹34.20 crore. There was no exceptional item in either quarter. Management said the sequential fall in net profit was due to higher depreciation and amortisation, largely on acquired intangibles, relatively lower other income from currency movements, and a higher effective tax rate of 25.8%. Management also said other expenses rose sequentially mainly due to approximately ₹20 crore of higher freight costs.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹1,780.96 crore, up 32.9% from ₹1,340.40 crore in H1 FY26, while total income rose 33.4% to ₹1,824.52 crore from ₹1,367.61 crore. Profit before tax increased 90.6% to ₹400.07 crore from ₹209.93 crore, and net profit rose 92.5% to ₹302.93 crore from ₹157.34 crore. EPS for the half year was ₹6.59 against ₹3.45.

Management said revenue growth was led by UK & Europe, which contributed ₹312 crore of the increase in H1, alongside additions from the US and Australia & New Zealand. The company said gross profit rose 36.0% and EBITDA rose 74.7%, with operating cash flow for the half year at ₹322 crore.

What do the balance sheet and cash flow show?

On the consolidated balance sheet at 30 September 2026, total assets stood at ₹4,359.62 crore against ₹3,860.90 crore at 31 March 2026, and total equity was ₹3,367.30 crore against ₹3,052.68 crore. Borrowings were ₹29.04 crore against ₹29.59 crore, and cash was ₹742.0 crore against ₹634.14 crore. Inventories were ₹995.68 crore against ₹972.28 crore, trade receivables ₹757.41 crore against ₹644.57 crore, and trade payables ₹392.99 crore against ₹336.91 crore.

Cash flow for the first half showed operating cash flow of ₹321.52 crore against ₹75.19 crore in the year-ago period. Investing cash flow was negative ₹144.09 crore against negative ₹36.48 crore, financing cash flow was negative ₹69.56 crore against negative ₹52.88 crore, and capital expenditure was ₹46.09 crore against ₹73.19 crore.

How has Marksans Pharma done over the last 8 quarters?

Revenue rose in each of the last six quarters on a year-on-year basis, and profit rose year on year in each of the last five quarters. Revenue reached ₹940.17 crore in Q2 FY27 from a low of ₹70.85 crore in Q4 FY25, while net profit moved from ₹9.07 crore in that low quarter to ₹143.53 crore in the latest.

The EBITDA margin peaked at 25.3% in Q1 FY27 and fell to 22.8% in Q2 FY27, which was equal to the Q4 FY26 level. Net profit reached ₹159.41 crore in Q1 FY27 before falling to ₹143.53 crore in the latest quarter, while revenue continued to rise to ₹940.17 crore.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 at its meeting on 4 November 2026, and the results were filed with limited review reports carrying an unmodified opinion. The same-day filings did not announce a dividend, a fund raise or any appointment, and the investor presentation was filed under Regulation 30 with the exchanges.

What did Marksans Pharma's management say?

Management said the Q2 FY27 results were the company's strongest-ever performance and that revenue reached ₹940 crore, up 30.5% year on year, with EBITDA up 48.3% and margins expanded 274 bps to 22.8%. The company said UK & Europe grew 64.9% to a record ₹405 crore in the quarter, Australia & New Zealand grew 64.0%, and US & North America delivered its highest-ever quarter at ₹421 crore. Management said the growth was broad-based and that its focus remains on sustaining profitable organic growth while selectively pursuing strategic acquisitions.

Management set out an FY27 EBITDA margin guidance of 20–21%, and said the Q2 margin was ahead of that range. For FY27–28, the company targets Indian manufacturing capacity of 16 bn units p.a., a move towards becoming the Top-3 Indian pharma company in the UK by revenue, and filing 200+ products in the UK over the next four years. It also aims to double US store-brand OTC revenue and to add 20-25 products every year.

Management identified risks including a softer US consumer environment, single-digit price erosion in the Rx portfolio, disruption to Middle East shipments from the West Asia crisis, and recovery in Rest of World revenue depending on geopolitical stabilisation. It said Q2 PAT fell 10.0% sequentially and the EBITDA margin fell to 22.8% from 25.3% in Q1, citing higher depreciation and amortisation, lower currency-driven other income and a 25.8% effective tax rate. On capital spending, management said H1 FY27 capex was ₹46 crore with free cash flow of ₹275 crore, and that European front-end expansion is under way in Ireland, Germany and the Netherlands, while Canada is being built as a new market.

How did Marksans Pharma shares react?

The stock was in market when the filing appeared. From the price at the time of the filing, it fell 5.0% after five minutes, 4.3% after fifteen minutes and 5.0% after thirty minutes. On the reaction day, measured from the previous close of ₹314.40, the stock fell 4.4%, underperforming the Pharmaceuticals sector median of 0.8% by 5.1 percentage points and the Nifty Microcap 250 move of 2.2%.

By the next day's close the stock was down 0.5% from its pre-results close, against a Pharmaceuticals sector median move of 1.6%, an underperformance of 2.1 percentage points. Earlier reaction-day moves were 2.7% on 4 August 2026, 15.4% on 26 May 2026, 1.2% on 5 February 2026 and 2.8% on 13 November 2025, against falls of 11.0% on 12 August 2025 and 7.0% on 19 May 2025.

How did other Pharmaceuticals companies do?

Among 71 Pharmaceuticals companies that have filed for this quarter, the median revenue growth was 18.9%, against Marksans Pharma's 30.5% growth in Q2 FY27. Of the other companies, 50 grew slower than Marksans Pharma and 21 grew faster. Of the 66 peers for which profit was compared, 48 reported higher profit.