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Gland Pharma shares jump 6% post Q1 show; should you buy, sell or hold?
At 9:35 AM, Gland Pharma shares were trading at ₹2,004.1, up over 2 per cent on the National Stock Exchange. In comparison, Nifty50 was trading largely flat, albeit with a negative bias, quoting 24,631.90 level, down by 17 points or 0.07 per cent. The shares of the company were trading just 6 per cent lower when compared to 52-week high of ₹2,220. The total market capitalisation of the company stood at ₹32,974.35 crore.
The buying interest on the counter came after the company released its earnings for the first quarter of the financial year 2025-2026 (Q1FY26).
Gland Pharma Q1FY26 earnings
The pharma company's profit after tax (PAT) for the quarter ended June 30, 2025, stood at ₹215 crore, up 50 per cent from ₹143 crore reported in the corresponding quarter of the previous fiscal year. Consolidated revenue from operations figures stood at ₹1,505 crore in Q1FY26, as against ₹1,401 crore reported in the year-ago period, marking a rise of 7 per cent.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) figure advanced 39 per cent to ₹367 crore during the quarter under review as compared to ₹265 crore reported in the first quarter of the last fiscal year. PAT margins stood at 14 per cent in Q1FY26. The figure stood at 10 per cent in the year-ago period. That apart, the company launched 12 new molecules in regulated markets, including Colistimethate, Epinephrine, Vancomycin (three new strengths), Liraglutide and Acetaminophen Bags.
'This quarter's performance, with improved margins and Cenexi achieving Ebitda break even, reinforces the progress we are making in delivering our long-term vision. By enhancing our base business, investing in differentiated products, and driving operational efficiencies, we are positioning ourselves for sustained growth," said Shyamakant Giri, chief executive officer of Gland Pharma.
What should investors do?
The pharma company reported a strong double-digit rise in earnings after four quarters of consecutive decline. While the company's core market sales remained moderate, analysts at Motilal Oswal Financial Services believe that new launches will improve the outlook for the coming quarters.
The brokerage firm has maintained a 'Buy' rating on the stock with a target price (TP) of ₹2,340.
"After three years of earnings decline, we expect a compound annual growth rate (CAGR) of 14 per cent/20 per cent/27 per cent in revenue/Ebitda/Pat over FY25-27. Gland is fortifying its positioning in the complex injectable space through in-house product development as well as partnerships. It is in the process of adding capacity to cater to upcoming GLP-1 opportunities as well. Considering 1Q earnings growth and valuation, we maintain 'BUY' on the stock," the brokerage firm said.
However, Ravi Singh, SVP-retail research at Religare Broking, has called for a cautious stance, saying that existing investors should wait for an extended price action.
"On the weekly chart, the stock has strong resistance around ₹2,220 level, which can act as selling pressure and buyers may get trapped, so traders should cautiously watch the price action near this level. Overall, for now sentiments remain on the sideways to positive side with levels to be focused, existing investors can trail their positions to cost or book some profit near the immediate resistance of ₹2,120 and fresh positions can be recommended once it sustains above ₹2,120-₹2,150 level," said Ravi Singh.
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