Gland Pharma Ltd shares surged as much as 16.22% to ₹2,170 per share on Monday, May 18, hitting a 52-week high on the BSE. At 9:37 AM, the stock was trading at ₹2,095 per share, up 12.21% from its previous close. The scrip had hit its 52-week low of ₹1,452.20 on May 19, 2025, demonstrating significant volatility in the stock price. The strong performance came after the company announced exceptional quarterly results for Q4 FY26.
The company reported exceptional financial results for the quarter ending March 31, 2026. Consolidated profit after tax increased by 97% to ₹366.7 crore compared to ₹186.5 crore in the year-ago period, reflecting a 96.56% year-on-year jump. Revenue from operations advanced 22% to ₹1,742.8 crore in Q4 FY26 versus ₹1,424.90 crore in the corresponding period of the previous fiscal year. According to the company, this revenue growth was backed by an increase in capacity and new product ramp-ups, with contract and pricing renegotiations, cost reduction steps and operating leverage helping the margin profile.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) saw an uptick of 48% to ₹513 crore in the quarter under review versus ₹347.5 crore in Q4 FY25. The EBITDA margin stood at 29% compared to 24% in the previous year. The company attributed the improved profitability to robust growth in the CDMO segment, alongside new product launches and improved profitability across its existing portfolio, driven by ongoing cost efficiency initiatives. EBITDA came 16% ahead of estimates and PAT 32% ahead of estimates, helped by higher other income.
Multiple brokerages maintained bullish sentiment on Gland Pharma, with Elara Capital retaining its Buy call and raising the target price to ₹2,306 from ₹2,225, based on 25x FY28E core EPS plus cash per share. The assigned target price implies an upside of 6.3% from today's intraday high levels. Motilal Oswal Financial Services (MOFSL) reaffirmed its Buy rating, noting the company delivered better-than-expected performance with 8%/25%/40% beat on revenue, EBITDA, and PAT respectively. Analysts expect a 19% earnings CAGR over FY26-28, driven by a complex product pipeline of injectables, scale-up of CDMO contracts, and improved synergies from Cenexi.
The company announced a final dividend of ₹20 per share for the financial year 2025-26, subject to approval by the shareholders at the ensuing Annual General Meeting (AGM). The record date is August 11. Upon shareholder approval, the dividend will be paid within 30 days from the date of the 48th Annual General Meeting (AGM). Management's FY27 guidance of 12-13% constant-currency top-line growth aligns with analyst expectations, while the ex-Cenexi EBITDA margin guidance of 33-35% appears conservative. The regulated markets business benefited from new complex product launches and renewed contracts in existing products, with Cenexi remaining EBITDA-positive despite lower top-line quarter-on-quarter.
