GSK Pharma Q2 net profit up 2% despite dip in revenue; Oncology off to strong start

Drug firm GSK Pharmaceuticals Ltd on Thursday (November 6) reported a 2% year-on-year increase in net profit to ₹257.5 crore for the quarter ended September 2025, compared with ₹252.5 crore in the same period last year. Revenue from operations declined 3% year-on-year to ₹979.9 crore from ₹1,010.7 crore.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 4.5% year-on-year to ₹336.2 crore, against ₹321.5 crore in the corresponding quarter of the previous year. The company’s EBITDA margin improved to 34.4%, up from 31.8% a year ago, supported by improved gross margins and operating leverage.

The company reported steady growth across its key portfolios during the quarter, with its newly launched Oncology portfolio off to a strong start. While topline growth was muted due to temporary challenges, the company maintained strong profitability, sustaining leadership in anti-infectives, dermatology, and vaccines.

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The modest revenue decline reflects seasonal disruptions, the transitory impact of GST changes, and supply chain adjustments. Supply of some brands in the General Medicines portfolio was affected by a fire at one of the company’s contract manufacturing operations, which GSK is addressing to restore sustained growth in the upcoming quarters.

The General Medicines portfolio delivered competitive performance, with key promoted brands achieving market share gains and an Evolution Index (EI) greater than 100, according to IQVIA.

The Vaccines business expanded market share, driven by strong demand and continued leadership in the self-pay private market for paediatric vaccines. The adult vaccines segment also saw strong traction, led by growing adoption of Shingrix (Recombinant Herpes Zoster Vaccine, Adjuvanted), as GSK focused on advancing adult immunisation in India.

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GSK’s entry into Oncology with the launch of specialised therapies Jemperli (Dostarlimab) and Zejula (Niraparib) was well-received by healthcare professionals. These therapies aim to address critical gaps in specialised cancer care in India. Jemperli is an immuno-oncology treatment for second-line dMMR endometrial cancer, while Zejula is a PARP inhibitor indicated for advanced and recurrent ovarian cancer.

Bhushan Akshikar, Managing Director, GSK India, said, "Within two months of launch, our Oncology portfolio is impacting patients by addressing a critical unmet need in gynaecological cancers in India. Together, these assets represent meaningful progress in women’s cancer care."

Shares of GlaxoSmithKline Pharmaceuticals Ltd ended at ₹2,599.75, down by ₹61.75, or 2.32%, on the BSE.