Shares of Glenmark Pharmaceuticals fell sharply by nearly 5% to Rs 1,811.60 on Monday, November 17, as investors reacted to the company’s September quarter results, which revealed weak underlying performance once adjusted for a large one-time income. The stock dropped Rs 84 from the previous close of Rs 1,895.60.
Glenmark reported a 76% year-on-year jump in revenue to Rs 6,047 crore for Q2, but this included a one-time Rs 3,670 crore payment from AbbVie under its licensing agreement. After excluding this exceptional contribution, core revenue stood at Rs 2,380 crore — down 30.8% YoY. This sharp decline in adjusted revenue was the primary trigger for today’s sell-off.
Profitability also remained under pressure. The company reported a net profit of Rs 610 crore for the quarter, but this too was entirely driven by the AbbVie income. Adjusted for the exceptional item, Glenmark would have posted a net loss of Rs 900 crore. Operationally, the company recorded an EBIT loss of Rs 870 crore in Q2.
Domestic formulations revenue plunged 87.1% YoY to Rs 160 crore, representing only 7% of total sales, as Glenmark underwent a major GST 2.0–related transition. The shift resulted in distributor inventory corrections, delayed orders, and increased freight and reverse logistics costs.
The company also recognised several exceptional charges, including a Rs 590 crore provision on inventory post GST 2.0 rollout, Rs 490 crore due to changes in inventory and receivables, and a Rs 200 crore impairment.
North America revenue grew 7.4% YoY to Rs 800 crore, supported by injectables and institutional channels, while Europe revenue increased 8.5% YoY to Rs 750 crore on the back of new launches. Emerging markets declined 6.5% YoY to Rs 650 crore.
Overall, the stock’s decline reflects investor concern over the company’s weak underlying metrics — particularly the 31% drop in adjusted revenue and an adjusted net loss of Rs 900 crore once the AbbVie payment is excluded.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
