Recently, while screening for stocks for our Premium Members, I came across Marksans Pharma.

The stock is down from 350 odd levels to 190 currently. The company has reported consistent year on year growth in sales and is debt free on net basis with Rs 700 crore + cash.

For FY 26, the management is targeting Rs 3,000 crore sales with 16-18% EBITDA margins.

Below, we have shared notes from Q1 FY 26 concall of the company to understand management’s perspective on growth plans and guidance for next few years.

 

Before that: Here’s the list of new recommendations released in last few weeks:

  • For Alpha/Alpha + members – On 9th Oct’25, we released a new long term investment recommendation for Alpha and Alpha + members. It deals in Protective Gear with strong sector tailwinds. Co. has spent ~200 crore on capacity expansion in last 3 years and management is targeting 2x sales in 3 years. You can access it by signing up HERE
  • For Insider Bets members – Recently, we released our 5th stock report under “Insider Bets“ subscription. Herein the company’s performance has turned around with strong growth in PAT in FY 25 and management is targeting PAT margin to improve 3x. You can access it by signing up HERE

 

Marksans Pharma Q1 FY 26 concall notes

Source: Marksans Aug’25 Presentation

 

Financial Performance (Q1 FY26)

  • Revenue:
    • Rs 620 cr, up 5% YoY (Rs 590.6 cr)
    • US & North America: Rs 327.6 cr (+30.6% YoY), driven by new launches in digestive and pain-management segments
    • UK & EU: Rs 203.8 cr (-20% YoY), impacted by seasonal softness, warmer weather, and price erosion amid global tariff uncertainty
    • Australia & NZ: Rs 57 cr (flat YoY) due to pre-winter destocking
    • RoW: Rs 31.6 cr, showing growth
  • Profitability:
    • Gross Profit: Rs 358.2 cr (+8.9% YoY); Margin: 57.8% (+209 bps) aided by lower input costs and inventory liquidation
    • EBITDA: Rs 100.1 cr; Margin: 16.1% (-560 bps YoY) due to higher employee costs (Goa facility ramp-up), Rs 10.5 cr ECL provision, and weak operating leverage
    • PAT: Rs 58.2 cr (-34.7% YoY)
    • One-offs: Rs 6.2 cr MTM forex loss on GBP contracts; Adjusted EBITDA margin: ~17.8%
  • Balance Sheet & Cash Flow:
    • CFO: Rs 48.7 cr; Capex: Rs 37.8 cr (capacity expansion).
    • R&D: Rs 12.1 cr (~2% of revenue).
    • Debt-free, with Rs 711 cr cash (Jun 2025).
    • Working capital: 159 days (due to front-loaded US shipments).
    • Teva facility: Rs 400–500 cr annual run-rate, with scope to scale to Rs 800 cr
  • Operational & Strategic Updates:
    • New launches: 4 high-margin liquids in UK (60% OTC/40% Rx) to offset pricing pressure; margin accretive from Q2
    • Regulatory: EIR received for Time-Cap (USFDA, no observations); 3 new approvals (USFDA + MHRA)
    • US Outlook: Order book $220 mn; $45–50 mn to be executed in Oct–Dec 2025. 90% OTC contracts stable; shipments advanced to mitigate tariff risks
    • Goa facility: Near-ready; multi-dosage expansion (tablets, liquids, creams, etc.)
    • Challenges: Tariff uncertainty affecting sentiment and UK pricing; ~35–40% US revenue produced domestically via Time-Cap offers partial hedge
  • Guidance & Outlook:
    • FY26: Revenue near Rs 3,000 cr (slightly below target due to headwinds)
    • EBITDA margin: 16–18%, improving QoQ
    • Growth: Strong US traction; UK/Australia to recover seasonally
    • Long-term focus: OTC expansion, robust pipeline, capacity build-up, and selective front-end acquisitions

Hope you found the blog post useful and it added value to your investment decisions. Sign up for more interesting stock ideas and industry notes.

 

 

Disclaimer: This is not a recommendation to buy/sell any of the stocks mentioned above. The securities quoted are for illustration only and are not recommendatory.

Ekansh Mittal
Research Analyst

 

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