Gland Pharma delivered impressive first-quarter results with consolidated net profit rising 47% year-on-year to ₹317 crore, compared with ₹215 crore in the corresponding quarter last year, according to latest exchange filings. Revenue from operations increased 19.6% year-on-year to ₹1,800.2 crore in the quarter, up from ₹1,505.6 crore a year earlier, indicating continued growth across the company's business segments. The strong financial performance has translated into significant market momentum, with Gland Pharma shares surging around 12% to their 52-week high on Tuesday, August 11, as investors analyzed the Q1 earnings amid market expectations of a near-term end to growth challenges. The stock was trading around ₹2,965 in morning trade and has surged around 74% so far in 2026, significantly outperforming the Nifty 50's 6% decline.
Jefferies has upgraded Gland Pharma to Buy from Hold and raised its target price to ₹3,350 from ₹2,080, citing the company's strong Q1 performance and stating that key challenges are "largely behind" it, as reported by Moneycontrol. Jefferies' target price of ₹3,350 implies an upside of more than 25% from Monday's closing price, significantly higher than previous estimates. Goldman Sachs also raised its target price to ₹2,125 from ₹1,875, while maintaining a Sell rating, calling the margin performance healthy and noting that the Cenexi turnaround was progressing, although it remains at an early stage. Motilal Oswal Financial Services has reiterated its 'Buy' rating on Gland Pharma shares and maintained a target price of ₹3,080, implying an upside of approximately 15% from the current market price of ₹2,667.
The company's strong quarterly results were primarily attributed to robust demand in the US and European markets, with Jefferies analysis indicating that the company is benefiting from 32% year-on-year growth in the US market and delivered a strong performance with 32% YoY growth in the US, as reported by The Economic Times. Jefferies has raised its FY27 growth guidance to potentially reach 15% from earlier guidance of 12-13%, citing the strong Q1 performance, while Goldman Sachs raised its FY27-29 earnings-per-share estimates by 8-10% to account for the Q1 beat and revised management outlook. The brokerages highlight the company's healthy pace of differentiated product launches in US/Europe markets and currency depreciation tailwinds as key growth drivers. Jefferies also highlighted the signing of a major contract development and manufacturing organisation (CDMO) contract and pointed out the in-licensing of a differentiated product with a large total addressable market as important growth drivers.
The company demonstrated strong operational efficiency with EBITDA increasing 33.1% to ₹489.2 crore from ₹367.6 crore a year earlier, while EBITDA margin expanded to 27.2% from 24.4%, indicating improved cost management and operational leverage. Adjusted EBITDA margin stood at 28%, reflecting the company's focus on operational excellence and margin expansion. The profit after tax margin improved by around 330 basis points year-on-year, showcasing the company's ability to convert revenue growth into bottom-line expansion. Jefferies believes key challenges for Gland Pharma are now largely behind it, with Cenexi moving towards breakeven, new contract wins and the company's expansion into complex products expected to support growth going forward.
