Gland Pharma shares surged as much as 16.22% to a new high of ₹2,170 apiece on the BSE following the company's better-than-expected Q4 results. According to reports from Business Standard, the pharma stock jumped over 16% in early trade on Monday, with the stock continuing to see solid investor demand despite some profit-taking. The rally came as consolidated net profit spiked 96.6% year-on-year to ₹366.7 crore for Q4FY26, reflecting a 97% year-on-year jump from ₹186.5 crore in Q4FY25. The company's adjusted profit after tax nearly doubled to ₹366.7 crore from ₹186.5 crore in the same quarter last year.
Revenue in Q4FY26 grew 22% to ₹1,742.8 crore from ₹1,424.9 crore year-on-year, as reported by Business Standard. The CDMO (Contract Development and Manufacturing Organization) business contributed 46% of revenues, growing 36% YoY in Q4FY26 and 28% for FY26. At the operational front, EBITDA increased 48% to ₹513 crore from ₹347.5 crore in Q4FY25, while EBITDA margin expanded to 29.4% from 24.4% year-on-year. The regulated markets business benefited from new complex product launches and renewed contracts in existing products.
The quarterly trend analysis reveals significant operational variability with operating margins swinging from a low of 21.11% in September 2025 to the current peak of 29.44% in Q4FY26. According to latest reports, operating profit before depreciation, interest, and tax surged to ₹513.02 crores, translating to an operating margin of 29.44% - a substantial improvement from 25.65% in the previous quarter and 24.39% in the year-ago period. This 790-basis-point year-on-year margin expansion was driven by favourable product mix, operational efficiencies, and pricing improvements in certain markets. Employee costs totalled ₹411.57 crores, down 2.98% sequentially from ₹424.20 crores, with employee cost efficiency improving to 23.62% from 25.02% as a percentage of sales.
The board has recommended a final dividend of ₹20 per equity share of ₹1 each for FY26 (2,000 per cent) for shareholder approval. Upon approval, the dividend will be paid within 30 days from the date of the 48th Annual General Meeting. As reported by Business Standard, the rally in Gland Pharma shares came despite the broader Indian stock market crash as the benchmark BSE Sensex was trading lower by 855 points or 1.14% at 74,382 levels. Gland Pharma shares have rallied 17% in one month and gained 22% on a year-to-date basis, with the stock jumping 43% in one year and surging 57% over the past three years. However, the stock retreated 1.48% following the results announcement, trading at ₹1,867.10 reflecting investor caution around valuation and sustainability of margin performance.
According to Business Standard, Elara Capital retained its Buy call on Gland Pharma, raising its 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, setting a target price of ₹2,300, valuing the stock at 27x 12-month forward earnings. The firm expects 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. However, the stock trades at 35 times trailing earnings with a market capitalisation of ₹31,216 crores, commanding a premium valuation in the pharmaceutical sector. The company's average ROE of 11.08% lags peers significantly, indicating capital efficiency concerns despite strong absolute profits.
