GSK Pharma shares fall 3% as revenue misses expectations; Q2 breakdown here

GSK Pharma shares fell 3 per cent after it reported a lower-than-expected top-line for the second quarter of the current financial year

Shares of Glaxosmithkline Pharmaceuticals Ltd. (GSK Pharma) fell over 3 per cent on Friday after the pharma major reported a lower-than-expected top-line for the second quarter of the current financial year (Q2-FY26). 

 

The pharma major's stock fell as much as 3.07 per cent during the day to ₹2,525.4 per share, the second straight fall of over 3 per cent. The GSK Pharma stock pared losses to trade 3 per cent lower at ₹2,527.1 apiece, compared to a 0.60 per cent decline in Nifty 50 as of 10:30 AM. 

 

Shares of the company fell for the third straight session, falling 6 per cent in the process, and currently trade at 1.8 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 0.05 per cent this year, compared to a 7.1 per cent advance in the benchmark Nifty 50. GSK Pharma has a total market capitalisation of ₹42,330.33 crore. 

 

GSK Pharma Q2 results 

GlaxoSmithKline Pharmaceuticals reported a 1.98 per cent rise in net profit to ₹257.49 crore for the quarter ended September 2025, compared with ₹252.50 crore in the same period last year. Revenue from operations declined 3.05 per cent to ₹979.94 crore from ₹1,010.77 crore a year earlier.

 

Ebitda margin expanded by 250 basis points year-on-year to 34.3 per cent, supported by stable other expenses and lower employee costs, which declined 80 basis points as a share of sales. Ebitda rose 4.4 per cent year-on-year to ₹330 crore, slightly above the estimate of ₹320 crore. 

 

The topline was impacted by a fire incident at a major contract manufacturing organisation (CMO) plant and the goods and services tax transition. Operations are expected to stabilise from the second half of FY26, as the fire-related issues have been fully resolved, the management said.   ALSO READ | KFC, Pizza Hut operator stock slips 3% after muted Q2 results; details here

Motilal Oswal on GSK Pharma earnings

GSK Pharma reported lower-than-expected revenue for the September quarter, though Ebitda and net profit came in slightly above estimates, supported by controlled costs and improved profitability, according to Motilal Oswal Financial Services.

 

After strong year-on-year (Y-o-Y) revenue growth in FY24 and FY25, the company saw a decline in both the second quarter and first half of FY26. GSK Pharma continues to maintain a leading position in the vaccine segment with offerings for both paediatric and adult categories.

 

Motilal Oswal maintained its estimates for FY26-FY28 and valued the stock at 38 times 12-month forward earnings, arriving at a target price of ₹2,800. The brokerage expects a 13 per cent compound annual growth rate in earnings over FY25-FY28 as temporary operational issues are resolved and marketing efforts in the speciality portfolio gain traction. It maintained a 'Neutral' rating on the stock.