MARKSANSNSEQ4 FY26June 03, 2026

Marksans Pharma Limited

6,442words

103turns

12analyst exchanges

3executives

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Management on call

Mark Saldanha

FOUNDER, CHAIRMAN AND

Jitendra Sharma

CHIEF FINANCIAL OFFICER

Nitin Agarwal

DAM CAPITAL

Key numbers — 40 extracted

rs,

incerely appreciate your interest and continued support for the company. Over the last several years, we have been consciously building a diversified global health care company with multiple growth dr

INR3,000 crore

regulated markets. FY26 marks an important milestone in that journey. During the year, we crossed INR3,000 crores in net income for the first time and delivered our highest ever profitability. More importantl

INR1,533 crore

with North America, this remains our largest and fastest- growing market. Revenue for FY26 reached INR1,533 crores, reflecting a growth of 24% year- on-year. Over the last 4 years, the revenue in this market has

24%

gest and fastest- growing market. Revenue for FY26 reached INR1,533 crores, reflecting a growth of 24% year- on-year. Over the last 4 years, the revenue in this market has increased from INR635 crores

INR635 crore

growth of 24% year- on-year. Over the last 4 years, the revenue in this market has increased from INR635 crores to INR1,533 crores, demonstrating the scalability of our operating model and the strength of our

INR308 crore

, however, the Q4 performance was encouraging with revenue reaching an all-time quarterly high of INR308 crores, representing a growth of 12.3% year-on-year. We currently have 18 product new produ

12.3%

aging with revenue reaching an all-time quarterly high of INR308 crores, representing a growth of 12.3% year-on-year. We currently have 18 product new product approvals, 30 products under r

INR123 crore

rowth strategy. Australia was another important highlight during the year. Our Q4 revenue reached INR123 crores, reflecting a strong growth both sequentially and on a year-on-year basis. More importantly, t

56.7%

ability. FY26 saw a strong improvement across all key operating metrics. Gross margin improved to 56.7%, while EBITDA margin expanded to 20.4%. The Q4 margin was particularly strong at 22.8%. This impr

20.4%

across all key operating metrics. Gross margin improved to 56.7%, while EBITDA margin expanded to 20.4%. The Q4 margin was particularly strong at 22.8%. This improvement was driven by better product mi

22.8%

mproved to 56.7%, while EBITDA margin expanded to 20.4%. The Q4 margin was particularly strong at 22.8%. This improvement was driven by better product mix, operating leverage, softened raw material cos

INR990 crore

icant strength for the company. We closed FY26 with a cash and cash equivalent of approximately INR990 crores. This provides us with a substantial flexibility and invest behind future growth opportunities w

Guidance — 20 items

Mark Saldanha

opening

“FY26 marks an important milestone in that journey.”

Mark Saldanha

opening

“Revenue for FY26 reached INR1,533 crores, reflecting a growth of 24% year- on-year.”

Mark Saldanha

opening

“While FY26 revenue were marginally impacted by pricing pressure during the early part of the year, however, the Q4 performance was encouraging with revenue reaching an all-time quarterly high of INR308 crores, representing a growth of 12.3% year-on-year.”

Mark Saldanha

opening

“Our next 4 years, we intend to file over 200 products in the U.K.”

Mark Saldanha

opening

“market, increasing and creating a strong medium-term visibility.”

Mark Saldanha

opening

“FY26 saw a strong improvement across all key operating metrics.”

Mark Saldanha

opening

“We expect obviously some inflationary pressure on raw materials costs during Q1 FY27 due to the ongoing geopolitical and supply chain disruption.”

Mark Saldanha

opening

“We closed FY26 with a cash and cash equivalent of approximately INR990 crores.”

Mark Saldanha

opening

“In line with our commitment to create a long-term shareholder value, the Board has recommended a final dividend of INR0.90 per equity share, representing a 90% payout on face value for FY26.”

Jitendra Sharma

opening

“In Q4 of FY26, our operating revenue stood at INR856 crores, an increase of 20.8% year-on-year compared to INR708 crores in the same quarter last year.”

Risks & concerns — 5 flagged

While FY26 revenue were marginally impacted by pricing pressure during the early part of the year, however, the Q4 performance was encouraging with revenue reaching an all-time quarterly high of INR308 crores, representing a growth of 12.3% year-on-year.

— Mark Saldanha

We expect obviously some inflationary pressure on raw materials costs during Q1 FY27 due to the ongoing geopolitical and supply chain disruption.

— Mark Saldanha

So that's where the lack of clarity to some extent and hopes that it will end tomorrow is something that no one is panicking and no one believes that this will drag on because I don't think anyone can afford it to drag on, no country can afford it to drag on.

— Mark Saldanha

But at the same time, I would put a lot of stress -- I would put a lot of weightage on Europe.

— Mark Saldanha

So a lot of pricing pressure comes out there.

— Mark Saldanha

Q&A — 12 exchanges

Yes. Thanks for the opportunity. Just to understand your comments on the raw material cost inflation, how should one look at the margins coming through? You spoke about the impact in Q1. But I'm assuming there will be some contractual pass-through with a typical lag or something. If you can elaborate a bit, how should one think about the price hikes and gross margins in near term?

Mark Saldanha

Yes. So we are witnessing obviously, raw materials which directly or indirectly have petroleum- related ingredients or intermediates involved in that. So we are seeing a price escalation of over 20% to 30% on these raw materials. That said and done, we are presently havinga decent amount of inventory of raw materials.But obviously, our hope is that this war comes to an end as soon as possible. And it's not only us, it's, I guess, a global wish list, or everyone is hoping for the same thing. But if it does come to an end, then obviously, we see a correction of petroleum-related ingredients or p

Just 2 questions that I have. One is on the revenue guidance. So given the current macro situation, are we still on track to achieve the INR4,000 crores revenue by FY28? And second is on the pipeline. What sort of pipeline launches have we planned in North America and Europe for FY27? That's all.

Mark Saldanha

Yes. So to give some color and guidance, yes, I mean, our target is still there for INR4,000 crores in the next 2 years. We have come up with our business strategy and our business module. We have come up with a road map to double our revenue in the next 3 to 5 years. So yes, I mean, INR4,000 crores within the next 2 years is very much on the plate right now. And with regards to pipeline, our pipeline keeps growing because obviously, it's a never-ending pipeline. We keep developing products because that fuels a bit of our growth. That's a part of our growth strategy. So we've got a healthy pip

Hello. Am I audible?

Mark Saldanha

Yes. Yes. Thank you so much for the opportunity. Great set of results. Last time you had said that INR3,000 crores would be missed but you completely exceeded the guidance. So congratulations on that. The last part of my question has been answered. But I just wanted to touch upon -- a couple of years back, we had signed a CMO contract with a domestic API manufacturer. And will that come into play to protect us from our gross margins get affected because of the API crisis? Not to a great extent because what's driving the prices up are the intermediates. It is ultimately the intermediates that a

Yes. Topnotch results, sir. My query is more with respect to 7 to 8 years long-term. So I think back in Q2, you had mentioned expanding on current land banks to achieve INR9,000 crores to INR10,000 crores capacity. So by which FY should we achieve this roughly $1 billion capacity? And what should be the approximate cost? Because I'm looking at road map for us to reach a $1 billion revenue by FY34.

Mark Saldanha

That's a good outlook. But see, I mentioned in the previous call that we have a road map and a business model to double our revenue in the next 3 to 5 years. And we are quite optimistically working towards those objectives. We have different geographies, our focus is into. But in terms of infrastructure, we still have spare capacity. And as and when we believe it is the time to expand our capacity through land banks or through acquiring new plants, we are already looking out and we're already planning for that stage. So I think we may be a bit early but we are still working on that. Okay, sir.

Congratulations on a good Q4. Can we take Q4 as a exit run rate for FY27, i.e., could you replicate this level of revenues and profits for the full year?

Mark Saldanha

So, Viraj if you look at our historic trend over the last couple of years, the first quarter is normally where -- always because of seasonalities, right, first quarter is always on the lower side. The second quarter is better than the first quarter. Third quarter is actually a peak and then the fourth quarter, obviously, is stronger but not as strong as the third quarter. But obviously, this time it's a little bit different but it is historically, that's how it goes. Depending on how long the season, the winter season actually prolongs, so that's where the fourth quarter remains. But historica

I just had 2 questions. One is that you mentioned that our margins could be impacted due to the RM prices, raw material price inflation we see. So like for the full year FY27, can we -- still the EBITDA margins in the same range of 20%, 21%? Or do we expect them to be lower?

Mark Saldanha

No, I think it will be the same. Okay. And if you can give some guidance on the top-line level, can we see the growth of 18%, 20%? Or is it -- what range can we expect the growth to be in? I mean conservatively because I always like to be that way but between 15% to 20%.

Congratulations for a good set of numbers. My first question would be that you've entered the Europe market organically. So do you still plan to look at any possible opportunities for M&A in the region?

Mark Saldanha

Yes. We've organically entered only into Germany. Europe is a cluster of different countries and different zones like you have North Europe, you have the Nordics, you have Eastern Europe. So it's a cluster of many countries and many cultures and many different -- each country has its own modus of operandi or the sales that happen. So yes, we are exploring, obviously, to expand our footprint and become prominent players in Europe per se, not only in Germany. So we are looking at different countries within Europe also. Got it. And sir, my second question would be, when will we see some revenue c

Yes. Thanks, sir, and your team for a great set of numbers. My simple question is, what is operational capacity available out of 26 billion units as of now?

Mark Saldanha

Are you asking for the capacity -- utilization capacity? Yes. Right now, you have total capacity of 26 billion units. And even though 8 billion for Goa plant for with Teva we might be expandable. So what is right now operational capacity available? That's slightly below 50% for the Teva plant. No, no. That's not. Let me restate. Out of 26 billion, are we -- we have about 18 billion units per year already available, operational capacity? About -- yes, different facilities. You're talking of all 3 facilities put together? Yes, yes, yes. Yes. So we are at 13 billion to 14 billion. Okay, okay. 50%

Two questions. Firstly, on Australia geography, leaving out the seasonality in the cough, cold season, what sort of growth rate can we sustain with all the new launches we have done? Obviously, Q4 was very strong. But moving forward, what sort of growth rate one can assume? And what sort of scale...

Mark Saldanha

Like in the previous calls that I mentioned, we have a business model to see us -- a road map to see us to $100 million. I think we've reached halfway mark out here. But I'm very optimistic and very confident that within the next 3 years, we should hit those objectives of hitting our first milestone of $100 million. Okay. Sure. And in terms of the new geographies, EU markets and Canada, can you give some sense of what progress you have made in the Canada market? You spoke about the European region in the call earlier. The Canadian market, a lot of products are under filing right now. We see ap

Yes. Just one question from my side. Considering that we have a decent roadway for growth in Australia and New Zealand of around AUD100 million or so. My understanding is that we still currently only hold around 60% in the entity, the Australia, New Zealand entity. And considering you also added INR1,000 crores cash in the books, why not just buy the outright 40% or is there some constraints in that?

Mark Saldanha

Well, the management is running that, right? So the other 40% is working hard and growing the company and helping us achieve our objectives. So we are happy with that. Do we not have like a call option or any decisions of just increasing the stake, monetizing some of it? No, we don't have that. And again, I do believe we can grow a lot as partners, than individually. So the management is very capable of basically driving growth moving forward. So I think so far, we are happy with what we see. Okay. And while currently, let's say, sitting right now closer to INR3,000 crores odd, we've done a ve

Congratulations on the great set of numbers. I've been an investor for the last 5 to 7 years. So last couple of quarters were challenging. So good to see this quarter and especially the dividend which you have provided, which is, again, very welcome. I have 2 questions. One, Mark, is on the working capital cycle. I do see that increasing year- over-year. So just wanted to have an understanding like what is the comfort level? And do we see it going down?

Mark Saldanha

So Jugal, basically, last year, we were hit with the uncertainties of tariffs. If you look at the whole of the past year, there was a huge amount of uncertainties and it went on. There was a lot of chaos prevailing. So it was a conscious decision for us to ensure before our products -- nobody knew what will happen tomorrow, so before our products get into any tariff zone, we decided to go heavy on inventory, both finished product as well as raw materials. So I mean, it was better safe than sorry and our Board and everyone, we discussed and we decided let's just secure ourselves as much as we c

Thank you, everyone, for the continued support and interest. And please be safe and take care and have a great evening. Thank you.

Jitendra Sharma

Thank you.

Speaking time

Mark Saldanha

Moderator

Kamal

Ahmed Madha

Viraj Mahadevia

Adityapal

Jugal Shah

Mihir Damania

Jitendra Sharma

Maitri Sheth

Opening remarks

Nitin Agarwal

Thank you, Ebin. Hi, good afternoon, good evening, everyone. And a very warm welcome to Marksans Pharma's Q4 FY26 Post Results Earnings Call hosted by DAM Capital Advisors Limited. On the call today, we have representing Marksans Pharma management are Mr. Mark Saldanha, Founder, Chairman, and Managing Director; and Mr. Jitendra Sharma, Chief Financial Officer. I will hand over the call to Mark to make the opening comments and we'll open the floor for questions. Please go ahead, sir.

Mark Saldanha

Thank you, Nitin. Welcome, everyone and thank you for joining us for our Q4 and FY26 Earning Conference Call. We sincerely appreciate your interest and continued support for the company. Over the last several years, we have been consciously building a diversified global health care company with multiple growth drivers across regulated markets. FY26 marks an important milestone in that journey. During the year, we crossed INR3,000 crores in net income for the first time and delivered our highest ever profitability. More importantly, we strengthened the quality of business through geographical diversification, portfolio expansion, improved margins, and strong cash generation. We expanded our international footprint through new market entries in Germany, Canada, Ireland, while also strengthening our presence in Australia through our entry into branded prescription generics. Talking about regional growth, starting with North America, this remains our largest and fastest- growing market. Re

Jitendra Sharma

Thank you, sir. In Q4 of FY26, our operating revenue stood at INR856 crores, an increase of 20.8% year-on-year compared to INR708 crores in the same quarter last year. Revenue from the U.S. and North America markets stood at INR406 crores, an increase of 23.6% on a Y-o-Y basis, reflecting sustained demand momentum and strong execution in the U.S. market. U.K. and EU formulation business recorded revenue of INR308 crores, an increase of 12.3% year-on-year, marking the highest ever quarterly revenue. Q4 momentum was driven by multiple new product launches and improved order flow. Australia and New Zealand market revenue stood at INR123 crores, delivering 61.3% Y-o-Y growth. The rest of the world's revenue stood at INR19 crores. Gross profit for the quarter grew by 21.5% year-on-year to INR465 crores with a gross margin of 54.4%, an expansion of 27 bps on a Y-o-Y basis. We recorded EBITDA of INR195 crores in Q4 of FY26, up 54% on a Y-o-Y basis. EBITDA margin expanded by 491 basis points o

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