Glenmark Pharma reports strong Q2 on AbbVie payout, underlying business hit by GST transition

Glenmark Pharmaceuticals Ltd. reported a sharp surge in its September quarter performance, driven by a one-time income from AbbVie, even as underlying operations were weighed down by GST-related disruptions in India.

The company’s reported revenue jumped 76% year-on-year to ₹6,047 crore, which includes a one-time payment of ₹3,670 crore from AbbVie as part of its licensing agreement. Adjusted for this, core revenue stood at ₹2,380 crore, down 30.8% YoY.

Net profit came in at ₹610 crore, aided entirely by the exceptional income. Without it, Glenmark would have reported a net loss of ₹900 crore for the quarter. The company also posted an operational loss of ₹870 crore in Q2.

Domestic formulations revenue plunged 87.1% YoY to ₹160 crore, forming just 7% of total sales, as the company undertook a major transition under the GST 2.0 framework. The shift led to distributor inventory reductions, postponement of orders, and higher freight and reverse logistics costs.

Management emphasised that this was a one-time correction, citing that secondary sales rose 10.8% YoY, outperforming the broader IPM.

Exceptional items also included –

– ₹590 crore provision on certain inventories post GST 2.0

– ₹490 crore arising from changes in inventory model, receivables and other current assets

– ₹200 crore impairment

North America revenue grew 7.4% YoY to ₹800 crore, driven by injectables and institutional channels.

Europe revenue rose 8.5% YoY to ₹750 crore helped by new launches.

Emerging markets declined 6.5% YoY to ₹650 crore.

Chairman & MD Glenn Saldanha said the quarter “reflects the steady progress in strengthening Glenmark’s scientific and strategic foundation,” adding that the AbbVie partnership validates the company’s scientific capabilities and supports a financially self-sustaining innovation model.

He said continued momentum across the specialty and R&D pipeline, including the global expansion of Ryaltris®, the UK launch of Winlevi®, and regulatory progress in oncology.

Glenmark expects India business performance to normalise from Q3 onwards as GST-related adjustments subside.