This is its biggest single-day gain since May 18, 2026, when the stock had risen 15.4%.
However, brokerages were divided on the stock, with Jefferies upgrading it to “buy” and raising its price target while Goldman Sachs maintaining a “sell” rating.
For the June quarter, Gland Pharma’s net profit increased by 47.1% to ₹316.95 crore from ₹215.48 crore last year. Its revenue was up 19.6% to ₹1,800.27 crore.
Meanwhile, the company’s earnings before interest taxes depreciation and amortization (EBITDA) increased by 33.1% to ₹489.36 crore and its EBITDA margin expanded to 27.2% from 24.4% in the year-ago period.
Gland Pharma’s US business sales increased by 32% to ₹981 crore from ₹744.3 crore last year, while the EU business sales were up 20% at ₹395.4 crore from ₹330.2 crore.
The India business was up 12% at ₹66.6 crore from ₹59.4 crore and the CDMO business increased 20% to ₹891.5 crore from ₹741.1 crore.
Guidance
The company’s management said its FY27 growth can potentially reach 15% from the previous guidance of 12% – 13%. This is with potential upside if the RTU bag line receives approval in the third quarter.
Over the next four to five years, Gland Pharma was anticipating a Compound Annual Growth Rate (CAGR) of 15% but the management now said that with a new contract and other discussions that are currently being evaluated, they could see growth CAGR of around 20% over the next four years.
The annualized revenue from the CDMO partner is estimated to to $90 million to $100 million, according to the management.
Brokerages
Jefferies has upgraded the stock to “buy” from “hold” and has raised its target price to ₹3,350 per share from ₹2,080. This indicates an upside of 25.6% from its previous close.
It said it believes many key challenges for Gland Pharma are behind it, with Cenexi breakeven, new contract wins and expansion into complex products.
On the flip side, Goldman Sachs has a “sell” rating and has raised its target price of ₹2,125 per share from the previous ₹1,875 apiece. This indicates a downside of 20% from its previous closing price.
It sees the current valuation as expensive at 28 times its FY28 price-to-earnings compared to 22% earnings per share (EPS) CAGR estimated for FY26-28, given that it sees headwinds to core business margins and potential delays in Cenexi reaching pre-acquisition margins.
Stock reaction
Of the 18 analysts who have coverage on Gland Pharma, 12 have a “buy” rating, two have a “hold” rating and “four” have a “sell” rating.
Shares of Gland Pharma are now trading 7.6% higher on Tuesday at ₹2,869.9. The stock has risen 17% in the last one month. The stock has risen 67% so far this year.
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