April 27, 2026 (MLN):  GlaxoSmithKline Pakistan Limited (PSX: GLAXO) reported a robust 23% increase in its net profit for the first quarter ended March 31, 2026, reaching Rs2.61bn compared to Rs2.13bn in the corresponding period last year.

Reflecting this solid bottom-line growth, the pharmaceutical giant's earnings per share (EPS) expanded to Rs8.20 from Rs6.68 in Q1 2025.

The growth was primarily driven by a steady top-line expansion that outpaced direct costs.

GLAXO’s net revenue from contracts with customers posted a 9% year-on-year increase, rising to Rs17.03bn from Rs15.58bn. Concurrently, the cost of sales grew at a slower pace of 4%, reaching Rs10.64bn.

Because revenue growth comfortably outstripped the rise in production costs, the company’s gross profit secured a strong 20% expansion, settling at Rs6.38bn, up from Rs5.33bn in the prior year.

On the operational front, overheads escalated significantly. Selling, marketing, and distribution expenses rose by 22% to Rs1.30bn, while administrative expenses saw an 8% increase to Rs582.55m.

Other operating expenses also climbed by 22% to Rs375.47m, and other income saw a 17% drop, falling to Rs181.91m. However, the sheer strength of the gross margin expansion easily absorbed these higher costs, driving the operating profit up by 19% to Rs4.31bn.

Below the operating line, GLAXO benefited from a massive reduction in its debt-servicing costs. The company successfully slashed its financial charges by an impressive 80%, dropping to just Rs23.35m compared to the Rs114.10m burden recorded last year.

This significant relief in financial charges further propelled the profit before income tax, which jumped 22% to Rs4.29bn. Even after accounting for a 20% higher taxation expense of Rs1.68bn, the company securely closed the quarter with its impressive 23% leap in final net profit, settling at Rs2.61bn.

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