According to reports from Motilal Oswal Financial Services, Glenmark Pharmaceuticals Ltd. is strategically focusing on high-growth segments including dermatology, respiratory, and oncology to drive expansion in India and emerging markets. These specialized segments are expected to contribute meaningfully to the company's revenue growth going forward. In North America, the brokerage anticipates a strong recovery in the generics business, supported by a robust respiratory and injectables pipeline along with improving regulatory compliance, which is expected to accelerate growth in the US market.
As reported by Motilal Oswal, the company's innovation arm, Ichnos Glenmark Innovation (IGI), is now self-funded, significantly reducing the burden on the parent's balance sheet while enabling Glenmark to file one Investigational New Drug (IND) application annually. The brokerage expects Glenmark to deliver a revenue CAGR of 13-15% over the medium term, while Ebitda margins are projected to expand to around 23% by FY28, supported by improved product mix and operating leverage. The company's Ebitda is expected to rise sharply from around ₹1,300 crore in FY26 to ₹4,000 crore by FY28, while PAT is likely to nearly quintuple from about ₹570 crore to ₹2,600 crore over the same period.
According to Motilal Oswal's latest report, the brokerage has set a target price of ₹2,610, valuing the company at 25x 12-month forward earnings. The firm noted that FY26 marked a reset year for the company, setting the stage for a strong earnings cycle ahead. The improving profitability is expected to drive better return ratios, further strengthening the investment case for the stock. However, key risks identified include regulatory challenges in the US market, pricing pressures in generics, and execution risks in scaling up the specialty and innovation business.
