Motilal Oswal Financial Services has reiterated its 'Buy' rating on Glenmark Pharmaceuticals Ltd. with a target price of ₹2,570, implying an upside potential of around 15% from the current market price. According to the brokerage report dated August 03, 2026, the recommendation is based on strong momentum in the company's India and North America businesses, coupled with a growing respiratory portfolio and product pipeline that will support earnings growth over the next few years. The latest report values Glenmark Pharma at 25x 12-month forward earnings, adding the NPV of ₹290 crore related to ISB2001 to arrive at the target price.
The company reported revenue growth of 23.1% year-on-year to ₹4,019 crore for the June quarter, as reported by Motilal Oswal. EBITDA increased 38.6% YoY to ₹805 crore, while profit after tax climbed 53.8% YoY to ₹483 crore. However, EBITDA and PAT came in slightly below MOFSL's estimates. The brokerage noted that Glenmark reported a largely in-line revenue performance for the quarter. For the latest quarter, Glenmark Pharma delivered in-line revenue for 1QFY27, though it delivered a 7% and 10% miss on EBITDA and PAT respectively. The overall performance was driven by superior performance in the domestic branded formulation, consumer care, North America, and emerging markets businesses, while the EU business experienced a moderation in growth during 1QFY27.
Following a strategic course correction, Glenmark Pharma has returned to its superior growth path in India, according to Motilal Oswal. The company continues to strengthen the respiratory franchise in the US through commercial launches while building its product pipeline. USFDA compliance and the injectable product portfolio from the Monroe site are expected to provide additional growth levers going forward. Supported by a low base of FY26, the brokerage projects PAT of ₹2,100 crore for FY27 and ₹2,500 crore for FY28, compared to ₹570 crore in FY26. However, the latest report has slightly tweaked down FY27 estimates by 2.5%, factoring in the impact of raw material price hikes considering global political turmoil and an increase in R&D and marketing spend.
