GlaxoSmithKline Pharmaceuticals Limited Q3 FY26 Earnings Call Summary

Summary

GlaxoSmithKline Pharmaceuticals Limited - Q3 FY 2026 Earnings Call Summary Monday, February 09, 2026 5:00 PM

Event Participants

Executives 2 Bhushan Akshikar (Managing Director), Juby Chandy (Chief Financial Officer)

Analysts 8 Abdul Abdulkader Puranwala (ICICI Securities), Ahmed (Finnacle Institute), Aejas (Unifi AMC), Julie Mehta (B&K Securities), Mahesh Hemchand Purohit (H.J. Securities), Mehul Savla (RW Equity), Monica Bhaskar (SBI Mutual Fund), Nitin Agarwal (DAM Capital), Vamsi Hota (ASK Investment Managers), Viraj Mithani (Jupiter Financial)

Financials & KPIs

Geographic & Segment Commentary

• General Medicines: This segment grew 10% externally, outpacing the represented market growth of 9%. Performance was bolstered by recovery in anti-infectives (+4%) and double-digit growth in key brands like Augmentin, Ceftum, and T-Bact.
• Vaccines: Delivered double-digit growth for the sixth consecutive quarter. Pediatric vaccines (Boostrix, Varilrix, Havrix) grew 11% YoY, while the adult segment was driven by the Shingrix pivot toward cardiovascular metabolic disease prevention.
• Specialty & Oncology: Q3 marked the first full quarter of oncology sales for Zejula and Jemperli. The segment is scaling with Nucala reaching ~100 patients monthly and Trelegy Ellipta maintaining leadership in triple-closed inhalation therapy.

Company-Specific & Strategic Commentary

• Oncology Expansion: Regulatory approval was received in Dec 2025 for Jemperli as a first-line treatment for endometrial cancer, expanding the eligible patient pool from 800 to 6,000.
• Strategy 2.0 (Doubling Business): Management aims to reach ₹8,000 crores in revenue over 5-7 years, requiring a 12-14% CAGR. This will be driven by a “Freshness Index” target of 10-15% from new launches.
• Digital Omnichannel: The company achieved 4 million digital touchpoints with HCPs in Q3, augmenting the productivity of the 2,000-strong field force without increasing headcount in general medicines.
• Supply Chain Recovery: Remediation at the CMO site impacted by fire is complete; supply constraints that shaved ~3-4% off growth are now resolved, with full normalization expected in Q4.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Supply Chain & CMO Impact

• Question: What is the status of the supply disruption from the CMO fire? (Ahmed, Finnacle Institute)
• Answer: Constraints are resolved as of mid-November/December; remediation is complete. Lost sales were ₹25-30cr, shaving ~3% off growth. Q4 will focus on rebuilding inventory (Bhushan Akshikar).

Growth Strategy & Targets

• Question: How will you achieve the ₹8,000cr revenue target? (Monica Bhaskar, SBI MF)
• Answer: Base business (GenMeds/Vaccines) is expected to grow at high single digits. Boosters will come from Specialty/Oncology and new categories like Hep B and RSV. Aiming for a 20-25% “freshness index” in 5-7 years (Bhushan Akshikar).

Margin Sustainability

• Question: Are current EBITDA margins sustainable given launch costs? (Aejas, Unifi AMC)
• Answer: Our intent is to hold and sustain these margins. Specialty launches don’t require large field forces (only ~25 specialists for Onco), allowing us to invest in growth without diluting the 35% margin profile (Bhushan Akshikar/Juby Chandy).

Pipeline & Parent Relationship

• Question: Will the parent entity launch assets directly or through the listed entity? (Vamsi Hota, ASK Investment)
• Answer: Recent launches like Zejula/Jemperli through the listed entity prove our intent. India is now locked into the global model for early innovation access (Bhushan Akshikar).

Key Takeaway

GSK Pharmaceuticals delivered a milestone quarter, crossing ₹1,000 crores in revenue for the first time while achieving a record 35.9% EBITDA margin. The performance was characterized by a recovery in the General Medicines portfolio and double-digit growth in the Pediatric Vaccines segment. Strategically, the company is pivoting toward high-growth specialty areas, specifically Oncology and Adult Immunization, supported by the recent first-line endometrial cancer approval for Jemperli and the continued scaling of Shingrix (₹75cr CY25 revenue). Management has committed to a long-term goal of doubling the business to ₹8,000 crores through a 12-14% CAGR, fueled by 12-15 upcoming indications and new launches like Blenrep and Bepirovirsen. While raw material price stability and supply chain remediation support near-term stability, the company remains focused on maintaining its high margin profile while investing heavily in its specialty pipeline to drive future “freshness index” contributions.