Marksans Pharma Ltd

Marksans Pharma Limited reported Q1 FY27 revenue of INR841 crores, up 35.6% year-on-year, with record quarterly EBITDA of INR213 crores and PAT of INR159 crores. Europe delivered INR356 crores, growing 74.7% YoY, driven by acquisitions of QliniQ (Netherlands) and ABCnow (Germany), with consolidation starting in Q2. North America revenue rose 15.1% to INR377 crores, with softer summer demand but expected momentum in coming quarters. Australia/New Zealand revenue grew 53.7% YoY. Gross margin expanded to 59.1%, driven by favorable product mix and lower inventory costs. Free cash flow was INR152 crores, with cash reserves exceeding INR1,000 crores. Management emphasized scaling European operations, accelerating product launches, and improving profitability. Guidance for FY27 revenue growth of 15-20% and EBITDA margin of 20-21% was reiterated. Acquisitions in Europe are expected to contribute INR180 crores annually, with plans to expand further. The U.S. remains a key market, with OTC products driving growth, while geopolitical uncertainties and war-related costs may impact margin sustainability. R&D spending rose to 2.8% of revenue, with plans to double product portfolios in key markets over two to three years. Management noted cash reserves would fund both organic and inorganic growth strategies, though no specific large acquisitions were announced.

The document highlights strong revenue and profit growth, record financial metrics, and strategic expansion in Europe, with management expressing confidence in future growth and operational improvements.