Marksans Pharma shares crashed 14.28% in today’s session (August 12) to hit a four-month low of ₹180 apiece after the company reported weak June quarter numbers. Net profit fell 34.7% YoY to ₹58.2 crore, weighed down by weak performance in key regions, including the UK & Europe and Australia & New Zealand.
Profitability was also impacted by higher employee costs due to new hires at the acquired facility, as well as a one-time Expected Credit Loss (ECL) provision of ₹10.48 crore for the Emerging Market Division.
The revenue from the UK & Europe market dropped 19% YoY and 25.7% QoQ to ₹203.8 crore, while revenue from Australia & New Zealand declined 13.1% YoY and 25% QoQ to ₹57 crore.
The company said, “We saw high single-digit price erosion in some UK products. We’ve launched four high-margin liquid products in the quarter and strengthened our portfolio to better withstand pricing pressures.”
Meanwhile, revenue from the US & North America market stood at ₹327 crore, up 30.6% YoY, driven by new product launches in gastrointestinal, pain management, and digestive health segments. This helped offset weakness in other regions, enabling the company to post total revenue of ₹620 crore, a 5% YoY increase but a 12.5% QoQ decline.
The company noted that historically, Q2 and Q3 are stronger periods for its US & North America business and added, “We are already seeing signs of recovery and improving demand in the second quarter.
Mark Saldanha, Managing Director of the Company said “While Q1FY26 was a seasonally soft quarter, we delivered year-on-year revenue growth of 5%, while gross profit increased by 8.9%. This was supported by successful new product launches in the US markets and the easing of raw material costs.”
“We are already seeing encouraging early signs of demand recovery in key markets such as the U.S., U.K., and Australia. With the Goa facility integration nearing completion, we are now sharply focused on scaling capacity, enhancing operational efficiency, and unlocking synergies,” Mark Saldanha further added.
