Drugmaker Gland Pharma Ltd delivered exceptional financial results for Q2 FY27, with net profit surging 58.29% year-on-year to ₹290.75 crore compared with ₹183.68 crore in the corresponding period last year. According to the latest regulatory filing, revenue from operations grew 23.3% to ₹1,833.58 crore from ₹1,486.87 crore in the year-ago quarter. The company's total expenses also rose to ₹1,471.69 crore in the July-September period from ₹1,287.12 crore a year earlier. The profit after tax (PAT) margin increased by approximately 350 basis points year-on-year, demonstrating significant operational efficiency improvements.
The contract development and manufacturing organisation (CDMO) business emerged as the primary growth driver, contributing 45% of Gland Pharma's revenue and growing 31% year-on-year in Q2 FY27. As reported by Business Standard, Executive Chairman Srinivas Sadu stated that the CDMO business grew 31% year-on-year, supported by expanding customer engagements, strategic partnerships and a robust opportunity pipeline. The Critical Injectables business accounted for the remaining 55% and recorded 18% growth. The company's quarterly adjusted EBITDA grew 50% year-on-year, with the adjusted EBITDA margin at 27%. Research and development investments stood at ₹1,077 million (₹107.7 crore) during the quarter, accounting for 6% of consolidated revenue, compared with ₹817 million in the year-ago period, primarily directed towards complex product development and increasing the number of filings.
Gland Pharma significantly expanded its US presence during the quarter, launching four molecules in the United States — Sugammadex, Erythromycin, Fluorouracil and Atropine Sulfate. According to Business Standard, the company filed 11 Abbreviated New Drug Applications (ANDAs) and received 10 approvals during Q2 FY27. Its cumulative US filing tally stood at 399 ANDAs, of which 350 had been approved, and 49 were pending. The company has six products launched in its in-house complex product pipeline, while three more are in line for approval. Additionally, Gland Pharma has 15 products under co-development partnerships, comprising seven under the 505(b)(2) regulatory pathway and eight ANDAs, with commercialisation anticipated to begin in FY29.
The company made significant progress in its Ready-to-Use (RTU) infusion bag portfolio, filing 24 products and receiving approvals for 18 so far, with another eight products under development. As reported by Business Standard, its total RTU bag portfolio addresses a market opportunity of approximately $640 million in the United States. Technology transfer activities under its CDMO partnership with a global pharmaceutical company are progressing according to plan, with the partnership expanded to include additional technology transfer dossiers. Gland Pharma also secured manufacturing contracts for microspheres and respiratory products through strategic CDMO collaborations.
Regarding regulatory compliance, two of Gland Pharma's facilities were audited by the United States Food and Drug Administration (USFDA) during the quarter. According to Business Standard, the VSEZ facility received zero observations, while the Dundigal facility concluded its inspection in October 2026 with four procedural observations. Executive Chairman Srinivas Sadu emphasized the company's strong execution capabilities, stating that with continued investments in manufacturing capabilities, innovation and capacity expansion, the company remains well positioned to capitalise on growing global outsourcing opportunities and create sustainable long-term value for shareholders. Shares of Gland Pharma rose 0.70% to ₹3,169.4 apiece on the BSE following the results announcement after market hours.
