GLAXO - Glaxosmi. Pharma

📊 NSE: GLAXO 🏢 Pharmaceuticals - Multinational 📅 Last Updated: 12/13/2025 22:22

💰 Financial Performance

Revenue Growth by Segment

Standalone revenue for Q2 FY26 was INR 974 Cr, a decline of 2.6% YoY. Pediatric vaccines grew by 13% YoY, while the adult vaccine (Shingrix) also saw double-digit growth. General Medicines business was flattish/declined due to a combined INR 70-75 Cr impact from supply issues and GST reforms.

Geographic Revenue Split

Not disclosed in available documents, though the company operates primarily in the Indian Pharmaceutical Market (IPM) with exports mentioned as an industry-wide factor.

Profitability Margins

Gross margins improved and are expected to be sustainable due to stable raw material prices. Net Profit After Tax (before exceptional items) for Q2 FY26 was INR 253 Cr, representing a 26.1% margin, which is a 150 bps improvement YoY.

EBITDA Margin

EBITDA margin reached 34.4% in Q2 FY26, a significant improvement of 250 basis points YoY, driven by cost savings, better product mix, and field cost productivity.

⚙️ Operational Drivers

Raw Materials

Specific chemical names not listed; however, raw materials are noted as having 'stable prices' with no current spikes, allowing for sustained gross margins.

Key Suppliers

The company relies on third-party Contract Manufacturing Organizations (CMOs). One specific CMO (unnamed) suffered a fire incident that caused a supply disruption.

Capacity Expansion

Not disclosed in available documents; however, the company is focusing on 'product transformation' by launching innovative assets like Jemperli and Zejula.

Raw Material Costs

Raw material costs are described as stable. The company focuses on expanding gross margins through a singular focus on cost consciousness and mitigating input cost fluctuations.

Manufacturing Efficiency

Field cost productivity has been maintained. The company is moving toward high-category growth innovative assets to improve overall profitability.

📈 Strategic Growth

Expected Growth Rate

10%+

Growth Strategy

Growth will be driven by the launch of the Oncology portfolio (Jemperli and Zejula), scaling of Specialty brands (Nucala, Trelegy), and double-digit growth in the Vaccine segment (Shingrix). The company aims to recover from Q2 headwinds to meet its double-digit ambition for the full year.

Products & Services

Pharmaceutical products including anti-infectives, pain medications, dermatologicals, oncology drugs (Jemperli, Zejula), and vaccines (Shingrix, pediatric vaccines).

Brand Portfolio

Calpol, Nucala, Trelegy, Shingrix, Jemperli, Zejula.

New Products/Services

Launched Oncology portfolio on August 15, 2025, featuring Jemperli (for endometrial cancer) and Zejula (for ovarian cancer). These are expected to contribute significantly in coming quarters.

Market Expansion

Focusing on Gyn-Oncology solutions for Indian patients and expanding the adult vaccination market through Shingrix.

Market Share & Ranking

Maintained a competitive market share of approximately 27.6% in relevant segments.

🌍 External Factors

Industry Trends

The industry is shifting toward specialty medicines and oncology. There is an increasing threat from generics and biosimilars due to patent expirations and India's strong generic export position.

Competitive Landscape

Faces competition from generic drug manufacturers and other multinational pharma companies in the acute and specialty segments.

Competitive Moat

Moat is built on strong brand equity (e.g., Calpol), a leadership position in vaccines, and a strategic shift toward high-margin, innovative specialty drugs that are harder to commoditize.

Macro Economic Sensitivity

The acute segment of the Indian Pharmaceutical Market (IPM) grew below 5% in Q2, indicating sensitivity to seasonal demand and overall market softness.

Consumer Behavior

Increased demand for adult vaccines (Shingrix) and specialized oncology treatments as patient awareness and diagnostic capabilities improve.

Geopolitical Risks

Global geopolitical tensions are cited as factors that disrupt supply chains and increase raw material cost volatility.

⚖️ Regulatory & Governance

Industry Regulations

Strict pricing regulations under the National List of Essential Medicines (NLEM) impact profit margins. Manufacturing must meet high GSK global quality standards.

Taxation Policy Impact

Impacted by GST reforms which had a transitionary revenue impact of INR 30-32 Cr in Q2 FY26.

Legal Contingencies

The company is evaluating a demand order (value not specified) and plans to take appropriate legal actions. No other specific court case values were disclosed.