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Business Standard
5 days ago
- Business
- Business Standard
Gland Pharma gains after Q1 PAT climbs 50% YoY to Rs 215 cr
Gland Pharma advanced 1.36% to Rs 1,991.15 after the company's consolidated net profit surged 49.88% to Rs 215.48 crore in Q1 FY26 as against Rs 143.76 crore posted in Q1 FY25. Revenue from operations increased by 7.41% YoY to Rs 1,505.62 crore for the quarter ended 30 June 2025. Profit before tax (PBT) stood at Rs 312.74 crore in Q1 FY26, up 43.29% from Rs 218.25 crore recorded in Q1 FY25. EBITDA for the quarter came in at Rs 367.8 crore, marking a 38.58% growth YoY. The EBITDA margin improved to 24%, compared to 19% in the same period last year. On the geographical revenue front, Revenue from the US market stood at Rs 744.3 crore (down 2.42% YoY), revenue from Europe was at Rs 330.2 crore (up 28.68% YoY), Canada, Australia, and New Zealand stood at Rs 73.9 crore (up 65.32% YoY), Revenue from India was at Rs 59.4 crore (up 12.71% YoY) and the rest of the world was at Rs 297.8 crore (up 4.52% YoY) during the period under review. Total capex for the quarter rose 23.39% to Rs 78.6 crore in Q1 FY26, compared to Rs 63.7 crore in the same period last year. The companys total R&D expenses were Rs 46 crore in Q1 FY26, representing 4.4% of revenue. During Q1 FY26, the company launched 12 new molecules in regulated markets, including Colistimethate, Epinephrine, Vancomycin (in three new strengths), Liraglutide, and Acetaminophen Bags. Additionally, one ANDA (Abbreviated New Drug Application) was filed and nine were approved in Q1 FY26, contributing to a cumulative total of 372 ANDA filings in the U.S. (325 approved, 47 pending). Srinivas Sadu, Executive Chairman of Gland Pharma, said, We're off to a positive start this year with a growth in revenue and a significant jump in profitability, which was driven by a strong performance in our base business and a turnaround at Cenexi. These results show our strategic priorities are progressing and we are strengthening our capabilities, adding new capacity, and boosting R&D with complex products and key partnerships. We're committed to building on this strong foundation, improving our performance, and reinforcing Gland's path toward sustainable growth Shyamakant Giri, CEO, Gland Pharma, said, This quarters 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. At the same time, our continued focus on R&D, adherence to global quality standards, and investment in capability building position us to scale further, tap new markets, and deliver long-term value. Gland Pharma is one of the largest and fastest-growing injectable-focused companies, with a global footprint across 60 countries, including the United States, Europe, Canada, Australia, India, and other markets. It has a wide range of injectables, including vials, ampoules, pre-filled syringes, lyophilized vials, dry powders, infusions, oncology, and ophthalmic solutions. The company also pioneered Heparin technology in India.
Economic Times
5 days ago
- Business
- Economic Times
Gland Pharma shares rally 6% as brokerages lift ratings, target prices; here's why
Shares of Gland Pharma climbed as much as 6.4% on Wednesday to Rs 2,090.20 on BSE, as multiple brokerages upgraded the stock and raised target prices, citing a successful turnaround of its European unit Cenexi and a sharp expansion in operating margins in the June quarter. ADVERTISEMENT Jefferies upgraded the stock to 'Hold' from 'Underperform' and raised its price target to Rs 1,950 from Rs 1,350, stating that 'Gland Pharma's earnings have bottomed out' and that 'the Cenexi breakeven leads to in-line EBITDA.' Jefferies also noted that while the company's US performance was soft, full-year guidance remained strong, with mid-teens growth expected. Motilal Oswal was more bullish, retaining a 'Buy' rating and raising its price target to Rs 2,340, implying a 19% upside from the previous close. The brokerage expects a CAGR of 14%/20%/27% in revenue/EBITDA/PAT over FY25–27 and sees further margin improvement in the second half of FY26 as Cenexi's profitability scales up. 'We raise our earnings estimates by 9%/3% for FY26/FY27, factoring in:a) scale-up of GLP-1 products in other core markets,b) faster turnaround of Cenexi, andc) potential launches in the US/EU,' the brokerage said. ADVERTISEMENT Only Goldman Sachs maintained a bearish view, retaining a 'Sell' rating with a target price of Rs 1,675. The brokerage acknowledged the 39% year-on-year growth in EBITDA and strong showing from Cenexi, but flagged the underperformance in the US segment. Brokerage commentary focused on the improved profitability of Cenexi, the French CDMO that Gland Pharma acquired in 2023. Jefferies noted that Cenexi achieved EBITDA break-even during the quarter, stating that the 'turnaround was led by higher-value tech transfer projects and better utilization across sites.' Cenexi's sales rose 20% year-on-year, helping lift Gland Pharma's consolidated EBITDA margin to 24.4%, an expansion of 557 basis points, according to both Jefferies and Goldman Sachs. Motilal Oswal highlighted that excluding Cenexi, the margin was even higher at 34.5%. ADVERTISEMENT Management expects sustained positive EBITDA from Cenexi and noted that 'profitability is expected to further improve from the second half of FY26 onward.' Also read | Swiggy vs Eternal: Which stock promises better value delivery post Q1 show? (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
5 days ago
- Business
- Time of India
Gland Pharma shares rally 6% as brokerages lift ratings, target prices; here's why
Live Events Cenexi turnaround boosts sentiment (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Gland Pharma climbed as much as 6.4% on Wednesday to Rs 2,090.20 on BSE, as multiple brokerages upgraded the stock and raised target prices, citing a successful turnaround of its European unit Cenexi and a sharp expansion in operating margins in the June upgraded the stock to 'Hold' from 'Underperform' and raised its price target to Rs 1,950 from Rs 1,350, stating that 'Gland Pharma's earnings have bottomed out' and that 'the Cenexi breakeven leads to in-line EBITDA.' Jefferies also noted that while the company's US performance was soft, full-year guidance remained strong, with mid-teens growth Oswal was more bullish, retaining a 'Buy' rating and raising its price target to Rs 2,340, implying a 19% upside from the previous close. The brokerage expects a CAGR of 14%/20%/27% in revenue/EBITDA/PAT over FY25–27 and sees further margin improvement in the second half of FY26 as Cenexi's profitability scales up.'We raise our earnings estimates by 9%/3% for FY26/FY27, factoring in:a) scale-up of GLP-1 products in other core markets,b) faster turnaround of Cenexi, andc) potential launches in the US/EU,' the brokerage Goldman Sachs maintained a bearish view, retaining a 'Sell' rating with a target price of Rs 1,675. The brokerage acknowledged the 39% year-on-year growth in EBITDA and strong showing from Cenexi, but flagged the underperformance in the US commentary focused on the improved profitability of Cenexi, the French CDMO that Gland Pharma acquired in 2023. Jefferies noted that Cenexi achieved EBITDA break-even during the quarter, stating that the 'turnaround was led by higher-value tech transfer projects and better utilization across sites.'Cenexi's sales rose 20% year-on-year, helping lift Gland Pharma's consolidated EBITDA margin to 24.4%, an expansion of 557 basis points, according to both Jefferies and Goldman Sachs. Motilal Oswal highlighted that excluding Cenexi, the margin was even higher at 34.5%.Management expects sustained positive EBITDA from Cenexi and noted that 'profitability is expected to further improve from the second half of FY26 onward.'
Mint
5 days ago
- Business
- Mint
Gland Pharma share price rises 6% post Q1 results: Should you buy or sell the stock?
Stock Market Today: Gland Pharma share price gained more than 6% in the morning trades on Wednesday, post Q1 results On Tuesday, August 5, after the market hours, Gland Pharma Ltd. reported a strong rise in net profit for the first quarter of FY26. The Gland Pharma net profit jumped 49.9% year-on-year to ₹ 215.4 crore, from ₹ 143.7 crore in the same period last year. The net profit, helped by operating performance, beat analyst expectations. Analysts at Motilal Oswal Financial Services said that while Gland Pharma posted revenue in line with our estimate in 1QFY26, EBITDA and net profit exceeded their estimates by 13% and 16%, respectively. Gland Pharma Net sales at ₹ 1505.6 crore grew 7.4% year-on-year. Better operational efficiency at Cenexi and strong traction in key geographies, such as Europe, Canada, Australia, New Zealand, and the rest of the world, contributed to the quarter's improved performance. Cenexi is a European pharmaceutical Contract Development and Manufacturing Organization (CDMO) acquired by Gland Pharma to expand its presence in the European market. Jefferies India Private Limited said that Gland 1Q results were driven by a turnaround in Cenexi, which benefitted from the launch of higher-value projects and better capacity utilization. The US saw a soft quarter, but management expects a stronger second half and maintained an overall mid-teens revenue growth guidance.
Business Upturn
5 days ago
- Business
- Business Upturn
Gland Pharma share: Jefferies upgrades to hold, Goldman Sachs maintains sell; divergent views on recovery and upside
By Arunika Jain Published on August 6, 2025, 08:12 IST Jefferies has upgraded its rating on Gland Pharma to Hold from its previous stance, with a revised target price of ₹1,970, citing operational recovery signs and a turnaround in its European subsidiary Cenexi. The brokerage noted that the Q1FY26 performance was in-line, supported by the launch of higher-value projects and improved capacity utilization at Cenexi. While the US segment witnessed a weak quarter, management remains optimistic about a stronger second half and has reiterated its mid-teens revenue growth guidance for FY26. Jefferies believes that Gland Pharma's earnings have likely bottomed out but sees limited upside potential at current valuations, justifying its 'Hold' stance. In contrast, Goldman Sachs has retained its Sell rating on the stock, with a target price of ₹1,675. The brokerage said Gland Pharma's Q1 sales and EBITDA grew 7% and 39% year-on-year, respectively—broadly in line with expectations. The outperformance in Cenexi was offset by continued weakness in the US business, which declined 5% YoY. Goldman highlighted an improvement in gross margins, driven by a better product mix and lower raw material costs, which led to a 557 basis points expansion in EBITDA margin to 24.4%. However, it projects a flat FY25 and only a mid-teens growth trajectory in FY26, indicating muted near-term prospects. Disclaimer: The views and investment recommendations expressed in this article are those of the brokerage firms quoted. These do not represent the views of Business Upturn. Investors are advised to consult certified financial advisers before making any investment decisions. Ahmedabad Plane Crash Arunika Jain, a graduate in Mass Communication, brings a fresh perspective to the world of journalism. Arunika has a passion for writing finance and corporate news at You can write to her at [email protected]
