Gland Pharma Q2 FY27: Consolidated PAT Up 58% YoY, Margins Expand but Dip Sequentially

Gland Pharma's consolidated Q2 FY27 (quarter ended Sep 30, 2026) revenue was ₹1,833.6 Cr, up 23.3% YoY from ₹1,486.9 Cr and up a modest 1.9% QoQ from Q1's ₹1,800.3 Cr. Consolidated PAT was ₹290.8 Cr, up 58.3% YoY from ₹183.7 Cr but down 8.3% QoQ from Q1's ₹317.0 Cr — net profit margin expanded YoY to 15.9% from 11.7% but slipped from Q1's 17.0%. No exceptional items were booked this quarter or in the year-ago quarter, so the YoY comparison is clean (the only exceptional item on record, a ₹24.3 Cr New Labour Code provision, sat in the Dec-25 quarter and FY26 full year, not here). Standalone PAT, by contrast, was ₹424.9 Cr — well above the consolidated figure — because two European subsidiaries (part of the Cenexi group) posted a combined loss after tax of roughly ₹33.3 Cr for the quarter; consolidated is the primary basis here, and readers comparing the two numbers should not read standalone as more representative of the group. Operating margin (EBITDA/revenue, derived from PBT plus depreciation and finance costs less other income) was about 26.4% this quarter, up sharply from 21.1% a year ago but down slightly from Q1's 27.2%. The YoY expansion is broad-based across cost lines scaling with a larger topline, but the sequential dip plus a step-up in tax (consolidated tax expense of ₹140.2 Cr on PBT of ₹430.9 Cr) explains why PAT fell QoQ even as revenue inched up. Against management's own guidance from the Q1 FY27 concall — FY27 constant-currency revenue growth raised to 15% (from 12-13%) and near-term EBITDA margin raised to 30% (from 25-26%) — H1 FY27 consolidated revenue grew 21.4% YoY to ₹3,633.9 Cr, comfortably ahead of the revenue target, while this quarter's 26.4% OPM is still roughly 360 bps short of the 30% near-term margin goal, though it has steadily closed from 21.1% a year ago. Against our own pre-result preview, which flagged PAT growth of ~15-20% YoY and revenue of ₹1,800-1,850 Cr as the on-plan range, the quarter beat clearly on profit (+58.3% YoY) while revenue landed within the expected band; no quarter-specific external analyst estimate was found post-result, but FY27 full-year consensus (~₹7,350 Cr revenue, ₹76 EPS) implies an H1 run-rate broadly on track. No standalone press-release commentary was available in this filing to corroborate against. Two of the three watch items flagged pre-result saw movement: the USFDA inspection at the Dundigal facility concluded on Oct 23, 2026 with 4 observations (severity/Form 483 classification not disclosed in this filing), and the company advanced its CDMO/US push by investing $21M (Oct 1, 2026) to subscribe 60% of Novelstar Pharma Inc., a new US step-down subsidiary. Going into Q3 FY27, the quarter sets up a margin-trajectory watch (26.4% now vs the 30% near-term target), the Dundigal remediation outcome, and early contribution, if any, from Novelstar as the CDMO push builds toward the previously flagged USD 90-100M contract starting CY2029.