Glenmark Pharmaceuticals Q1 PAT Down 86% at ₹46.97 Cr Dragged by US Litigation Settlement Provision

Glenmark Pharmaceuticals Ltd on Thursday reported an 86% drop in consolidated profit after tax to ₹46.97 crore in the first quarter ended June 30, 2025, impacted by a provision for settling a litigation in the US.

The company had posted a consolidated profit after tax (PAT) of ₹340.24 crore in the corresponding period of the last fiscal, Glenmark Pharmaceuticals Ltd said in a regulatory filing.

Consolidated total revenue from operations in the first quarter stood at ₹3,264.44 crore as against ₹3,244.19 crore in the same period a year ago, it added.

Glenmark Pharmaceuticals said it has made a provision for an estimated ₹323.23 crore (USD 37.75 million) for its agreement to enter into settlement with putative direct purchaser class in antitrust and consumer protection lawsuits in the US and charged the same amount to profit and loss account as an exceptional item in the financial result for the quarter ended June 30, 2025.

The litigations are over allegations of price-fixing, market allocation, and related anticompetitive conduct and plaintiffs include putative classes of direct purchasers, endpayers, and indirect purchasers of generic drugs, as well as numerous private, direct-action plaintiffs, it added.

Although the settlement is subject to approval by the court overseeing the litigation, Glenmark said the settlement makes clear that the company "denies each and everyone of its allegation against it and the settlement is not on the basis of Glenmark having considered or admitted any liability or illegality".

Total expenses in the quarter under review were marginally higher at ₹2,872.07 crore as compared to ₹2,813.34 crore in the year-ago period, the company said.

Commenting on the performance, Glenmark Pharmaceuticals Chairman & Managing Director Glenn Saldanha said, "In Q1FY26, our US business delivered QoQ growth, driven by a combination of injectable and partnered products launches. Our Europe and Emerging markets businesses have recorded over 25% CAGR and more than 10% CAGR respectively over the last three years, and we expect the region to deliver a double-digit growth from the second quarter onwards." The company said sales from the formulation business in India in Q1FY26 were at ₹1,239.9 crore as against ₹1,196.2 crore in the corresponding quarter last fiscal.

North America business registered revenue of ₹778 crore in the quarter ended June 30, 2025. In Europe, revenue for the first quarter of FY26 was ₹667.8 crore as against ₹695.7 crore, it added.

On the outlook, Saldanha said, "We remain confident in our strategy to drive growth across our markets, while advancing our branded, speciality, and innovative products to deliver long-term value for our stakeholders."