Marksans Pharma Ltd

Financial Performance

• Q1 FY27 revenue INR 840.8 crores, up 35.6% YoY.
• Gross profit INR 497.3 crores; gross margin 59.1% (up 138 bps YoY).
• EBITDA INR 213 crores; EBITDA margin 25.3% (vs 16.1% YoY).
• PAT INR 159.4 crores; PAT margin 18.4%.
• Operating cash flow INR 185 crores; net capex INR 33 crores.
• Free cash flow INR 152 crores.
• Working capital cycle ~132 days (vs ~159 days Q1 FY26).
• R&D spend INR 23.2 crores (2.8% of revenue).
• Cash balance INR 1,058 crores; net cash INR 1,031 crores.
• QliniQ B.V. Netherlands acquisition contributed ~INR 44 crores in Q1.
• Effective date 01-Apr-2026; consolidation in June quarter.
• North America revenue INR 377 crores; 45% of consolidated.
• UK & Europe revenue INR 356 crores; 42% of consolidated; highest quarterly for region.
• Australia & New Zealand revenue INR 88 crores; +53.7% YoY.
• Rest of World revenue INR 20 crores.

Operating / Segment Update

• Europe growth supported by QliniQ acquisition; organic UK momentum.
• Europe end-year target around INR 180 crores (EUR 14–15m).
• Germany/Netherlands acquisitions underpin Europe expansion; Ireland licensing ongoing.
• Canada product filings underway; Europe driving incremental growth.

Balance Sheet and Cash Flow

• End-Q1 cash INR 1,058 crores; net cash INR 1,031 crores.
• Operating cash flow INR 185 crores; free cash flow INR 152 crores.
• Working capital cycle ~132 days.

Projects and Capex

• Goa unit progressing; Teva facility targeted INR 80 crores revenue; current ~INR 50 crores.
• Possible new manufacturing unit in India; timing not fixed.
• Goa/Teva capex progress aligns with 3–5 year plan.

Outlook and Guidance

• FY27 revenue growth guidance: 15% to 20%.
• FY27 EBITDA margin guidance: 20% to 21%.
• Europe FY27 revenue around INR 180 crores (EUR 14–15m).
• Q2 revenue expected to be higher than Q1; Q3 strongest.

Q&A Takeaways

• QliniQ guidance: INR 150–175 crores revenue for FY27; consolidation effective Apr 1, 2026.
• Europe expansion: Germany revenue expected early Q3; Ireland licensing delays noted.
• US strategy remains important; potential capacity expansion discussed; timing uncertain.
• Gross margin comfortably guided around 55–56% under current geopolitics and costs.
• Acquisition appetite remains active in Europe; resources on balance sheet to fuel inorganic growth.
• R&D focus on product differentiation; Europe mix tilting toward Rx (80–85%) vs OTC.

Meeting Details

• Date: August 13, 2026; investor/analyst conference call on Q1FY27 results.
• Audio recording of the call uploaded to the company website.

Purpose

• Inform investors that Q1FY27 investor call audio is now available.

Overview

• Q1FY27 unaudited results for quarter ended 30 June 2026.

Financial highlights

• Operating revenue ₹841 cr, up 35.6% YoY.
• EBITDA ₹213 cr, up 112.8% YoY; margin 25.3%.
• Gross profit ₹497 cr; gross margin 59.1%.
• PAT ₹159 cr; net margin 18.4%; EPS ₹3.5.

Geography and strategic developments

• US & North America revenue ₹377 cr, up 15.1% YoY.
• UK & Europe revenue ₹356 cr, up 74.7% YoY; highest quarterly.
• QliniQ B.V. and ABCnow acquisitions completed in Europe; QliniQ contributed ₹44 cr.
• Cash balance ₹1,058 cr; net cash ₹1,031 cr.
• Fitch revised outlook on facilities to Positive; ratings affirmed.
• Europe expansion front-end presence established.

Operational and liquidity highlights

• Net capex ₹33 cr; free cash flow ₹152 cr.
• Working capital cycle ~132 days; improved from ~159 days (Q1FY26).
• R&D spend ₹23 cr, 2.8% of revenue.
• Earnings conference call on Aug 13, 2026 at 4:30 pm IST.

Outlook and strategy

• Focus on expanding margins and strengthening European platform.
• Scale across geographies and accelerate new product launches.

Business Overview

• Core business: OTC-focused pharma with Rx across US, UK, Europe, ANZ, and RoW.
• FY26 total income ₹3,033 cr; EBITDA margin 20.4%.
• Europe growth via QlinIQ; front-end presence in Ireland, Germany, Netherlands, Canada.
• Manufacturing footprint: 4 units and 4 R&D centers.
• Goa Unit 2 doubles India capacity to 8 bn units p.a.
• Total capacity 26 bn units p.a. across facilities.
• QliniQ contributed ₹44 cr in Q1FY27.

Key Operational Highlights

• Q1FY27 revenue ₹841 cr; YoY growth 35.6%.
• EBITDA ₹213 cr; EBITDA margin 25.3%.
• PAT ₹159 cr; tax rate 22.8%.
• UK & Europe revenue ₹356 cr; up 74.7% YoY.
• QliniQ contribution ₹44 cr in Q1FY27.
• Ireland/Germany/Netherlands/Canada front-end entries.
• Australia & New Zealand revenue ₹87.6 cr; +53.7% YoY.
• RoW growth across 10 countries; 230+ licensed products.
• Canada entity; product filings underway; commercial revenue next quarters.
• Cash balance ₹1,058 cr; net cash ₹1,031 cr.
• Capex ₹33 cr in Q1FY27.
• Acquisitions: QliniQ B.V. (Netherlands) and ABCnow GmbH (Germany).

Financial Performance

• Operating revenue ₹840.8 cr; YoY +35.6%; QoQ -1.8%.
• Gross profit ₹497.3 cr; gross margin 59.1%.
• EBITDA ₹213.0 cr; EBITDA margin 25.3%.
• PAT ₹159.4 cr; net profit margin 18.4%.
• Taxes ₹-47.2 cr; tax rate 22.8%.
• Diluted EPS ₹3.5.
• Operating cash flow ₹185 cr; free cash flow ₹152 cr.
• FY26 total income ₹3,033 cr; EBITDA margin 20.4%.

Capital Structure & Liquidity

• Cash balance ₹1,058 cr; net cash ₹1,031 cr; cash positive 5+ years.
• Capex ₹33 cr in Q1FY27.
• Long-term ratings: CARE AA-; IND AA-; outlook Positive.
• Inorganic growth funded by cash; completed QliniQ and ABCnow acquisitions.

Strategic Priorities & Outlook

• Growth pillars: broaden, expand, deepen, scale.
• FY27-28 India capacity target: 16 bn units p.a.
• Expand US/NA revenue; EU front-end; Australia expansion; Canada and Europe revenues.
• FY30 vision: top global consumer healthcare; multi-continent front-end; strong free cash flow.
• Pipeline: 200+ products; 20-25 launches per year.
• ESG-integrated, sustainable operations; strong free cash flow.

Risks & Mitigation

• West Asia crisis causing RoW shipment delays; improvement expected.
• Seasonality in US & ANZ; Q1 softness.
• Regulatory approvals risk; mitigated by filings and acquisitions.

Governance & Leadership

• CEO: Mark Saldanha; CFO: Jitendra Sharma.
• Promoter holding steady at 43.9%; OrbiMed holds 8.6%.
• Acquisitions expanding front-end access: QliniQ, ABCnow; Ireland, Germany, Netherlands, Canada.
• Independent directors and governance standards; strong leadership team.

Financial results approved

• Board approved standalone and consolidated unaudited results for quarter ended 30 June 2026.
• Limited Review Reports on both results carried unmodified by MSKA & Associates LLP.

Acquisitions

• Acquired 100% stake in QliniQ B.V. (Netherlands) for EUR 7.50 million.
• ABCnow GmbH acquisition completed for EUR 1.10 million; wholly owned subsidiary.

Equity and options

• Granted 300,000 stock options under the Marksans Employees Stock Option Scheme 2024; exercisable into equity shares.

Consolidation and subsidiaries

• Consolidated results include seven subsidiaries not audited; Q ended 30 June 2026 revenue 1,305.28 million; PAT 95.13 million.

Auditor remarks

• Statutory auditors MSKA & Associates LLP issued unmodified limited review reports for standalone and consolidated results.

Meeting Details

• Board to meet on Aug 12, 2026 in Mumbai to consider unaudited standalone/consolidated Q1 FY2026 results.

Key Agenda Items

• Approve unaudited standalone and consolidated financial results for Q1 FY2026 (Quarter ended June 30, 2026).

Other Notes

• Trading window closure details are not included in this summary.

Acquisition completion

• Completed acquisition of 100% stake in ABCnow GmbH, Germany.