Gland Pharma shares surged 12.23% to hit a fresh 52-week high of ₹2,989.25 in Tuesday's intra-day trading, marking the stock's biggest single-day gain since May 18, 2026, when it had risen 15.4%. The pharmaceutical company's stock has rallied 67% in 2026, significantly outperforming the BSE Sensex which has declined around 8.25% during the same period. At 09:39 AM on Tuesday, Gland traded 11% higher at ₹2,966, with the company now commanding a market capitalisation of over ₹47,244.45 crore. The stock has risen 17% in the last one month and is now trading 7.6% higher at ₹2,869.9. Shares rose over 1% on Friday following the announcement of Deepak Sapra's appointment as CEO, with the stock hitting a fresh 52-week high of ₹3,025.00 per share. Sapra will take charge as CEO on November 16, 2026, replacing Shyamakant Giri who stepped down on April 30, 2026.
Gland Pharma delivered exceptional financial performance in Q1 FY27, achieving record quarterly revenue of ₹1,800.2 crore, up 19.6% year-on-year from ₹1,505.6 crore in Q1 FY26. The company's consolidated net profit rose 47.1% YoY to ₹317 crore, demonstrating robust operational execution and market resilience. According to the latest earnings summary, the company is targeting 15% CAGR over the next four years, with potential to reach 20% depending on new contracts and capacity approvals. The strong performance was driven by both CDMO and B2B businesses, each contributing 50% of revenues, supported by new product launches, increased volumes, and improved capacity utilization. In constant currency, revenue growth was around 15%, largely driven by the base business excluding Cenexi, while Cenexi sales were flat year-on-year in constant currency. EBITDA rose 33.1% YoY to ₹489.36 crore, with EBITDA margin expanding to 27.2% from 24.4% in the corresponding period last year, representing a substantial improvement in operational efficiency.
The company demonstrated exceptional profitability improvements with adjusted EBITDA of ₹5,102 million, representing 37% YoY growth with a 28% margin. Gross margin remained flat year-on-year, while EBITDA margin expanded 276 basis points, supported by operating leverage. The profit after tax margin stood at 18%, while reported EBITDA margin was 27%. R&D expenditure remained at ₹772 million, accounting for 4% of consolidated revenue, focusing on complex product development and filings to support long-term growth. The substantial margin expansion came alongside stronger revenue growth, demonstrating enhanced operational efficiency and strategic focus on high-value products.
The company's CDMO business remained a key growth driver, with revenue rising 20% YoY to ₹891.5 crore from ₹741.1 crore, supported by recent product launches. The B2B business also contributed significantly, with revenue growing 19% YoY to ₹909 crore from ₹330.2 crore. As reported by CNBC TV18, the CDMO business contributed 50% of revenues and grew 20% year-on-year in Q1 FY27, while the B2B business also contributed 50% of revenues and grew 19% year-on-year. Excluding Cenexi, CDMO contributed an estimated 29% of revenue and grew around 37% year-on-year. The strong performance was driven by recent product launches from the CDMO portfolio and robust customer demand for the company's diversified product mix.
Gland Pharma has secured a strategic manufacturing partnership with a large pharma company covering 55 SKUs across multiple injectable platforms, with peak revenue potential of $90-100 million, equivalent to around 20% of FY26 ex-Cenexi revenue. Revenue contribution from the contract is expected to begin in 2029, according to management. The company has strategically shifted towards tech-transfer/CDMO partnerships over IP-led programmes, leveraging its large-scale injectable manufacturing capabilities, Cenexi's European presence and its regulatory and quality track record. For FY27E, management guides for 15% constant-currency revenue growth, up from around 12-13% guided in Q4FY26. Nomura raised its FY27F/28F/29F EPS estimates by 9%/5%/5% and expects revenue growth of 13-15% over FY27F-29F, with the brokerage now expecting Gland Pharma to trade at a 25-30x multiple compared with 20-25x earlier. The company targets 20% revenue CAGR through FY30 with upside risk to FY27 guidance if the bag line approved by the USFDA and a partner secure semaglutide approval in Canada.
Gland Pharma entered into significant strategic collaborations during the quarter. Under a CDMO partnership with a global pharmaceutical company, the company expects an annualised revenue potential of approximately $90-100 million once all products are commercialised. Technology transfer activities are planned for completion within two years, with revenues expected to commence from calendar year 2029. The company also entered into a long-term strategic collaboration with Neuland Laboratories for the manufacturing of sterile active pharmaceutical ingredients (APIs) for microparticle depot products. Additionally, Gland Pharma signed an in-licensing agreement with a China-based development company for the development, manufacturing and commercialisation of a niche liposomal product for the US and European markets. Nomura retained its 'Buy' rating and raised its target price to ₹3,330, resetting it based on 27.5x FY28-29 average EPS. The brokerage expects 21% earnings CAGR over FY26-28 driven by complex injectables, peptides, GLP-1 and liposomal technologies. Of the 18 analysts covering Gland Pharma, 12 have a 'buy' rating, two have 'hold' and four have 'sell' ratings.
