Gland Pharma shares have gained 19% over the past three trading sessions to reach a 52-week high following robust March quarter and full-year results. According to reports from The Economic Times, the stock's price-to-earnings (P/E) multiple at 35.6 remains below the three and five-year average of 37-38, suggesting reasonable valuations despite the current rally. The strong performance reflects investor confidence in the company's growth prospects and operational improvements across key business segments.
The company's European unit, Cenexi, has demonstrated significant improvement after breaking even two quarters ago. As reported by The Economic Times, Cenexi is expected to deliver mid-to-high single-digit operating margin before depreciation and amortisation (EBITDA margin) in FY27, with further expansion to mid-teen levels over the medium term. The acquisition of Cenexi in April 2023 has strengthened Gland Pharma's European presence, with the region's revenue share rising to 22% in FY26 from 5% in FY23. While it is expected to report a low double-digit revenue growth for FY27 amid geopolitical uncertainties, Gland management expects a stronger momentum in FY28 given the capacity additions and new product lines.
Gland Pharma's revenue rose 14.5% year-on-year in FY26 to ₹6,430.7 crore. According to The Economic Times, the company is targeting around 10% revenue growth to ₹200 million in FY27 from ₹182 million in FY26, indicating moderation compared with the 25% growth in FY26. However, a larger part of the expansion is expected to play out from FY28, which is likely to improve growth prospects. The contract development and manufacturing (CDMO) business, which accounts for nearly half of overall revenue at the consolidated level, grew by 28% in FY26. The company has guided for 15% growth in the medium term, led by new launches, ramp-up in key products, better utilisation, and Cenexi's turnaround.
To cater to rising demand, the company has outlined a capital expenditure of ₹2,000 crore over the next five years aimed at expanding CDMO capacity. As reported by The Economic Times, a key CDMO project is expected to be commercialised in the second half of FY28, with an annual revenue potential of $25-30 million. The company is focusing more on complex and high-margin CDMO opportunities, including oncology, complex injectables, peptides and drug delivery systems. The drug maker's revenue rose 14.5% year-on-year in FY26 to ₹6,430.7 crore, with the company targeting around 10% revenue growth to ₹200 million in FY27 from ₹182 million in FY26.
