Earnings Outlook
Enhanced manufacturing capacity to boost Gland Pharma PAT
This story was originally published at 18:54 IST on 2 August 2025
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By Rati Chaphekar
MUMBAI – Gland Pharma Ltd. is expected to post robust growth in net profit and moderate growth in net sales in the June quarter. The progress in enhancing the manufacturing capacity of its contract development and manufacturing organisation, Cenexi, has been a key factor in reviving growth in the company's sales and net profit in the reporting quarter.
Cenexi is a French pharmaceutical company that was acquired by Gland Pharma in November 2022.
Gland Pharma is expected to report a consolidated net profit of INR 2.06 billion, up 43.5% on year and 10.6% higher on quarter, according to the average of estimates by four brokerages. The highest estimate for Gland Pharma's net profit is INR 2.25 billion from Kotak Institutional Equities and the lowest estimate is INR 1.86 billion from Motilal Oswal Financial Services Ltd.
The company's June quarter top line is estimated at INR 15.05 billion, up 7.4% on year and 5.7% higher on quarter. The lowest revenue estimate is INR 14.91 billion from Kotak and the highest is INR 15.19 billion from Motilal Oswal.
The company has performed well in the US market in the reporting quarter on the back of normalisation of the supply chain, brokerages said. The company is expected to post robust growth in profit because of consolidation of its contract development and manufacturing organisation. The company's progress in expansion of packaging and final processing capacity for injectable peptides has also provided momentum to its net profit growth.
The company's earnings before interest, tax, depreciation, and amortisation are expected to be INR 3.62 billion, up 36.43% on year and up 4.2% on quarter, according to the average of estimates from four brokerages. The lowest EBITDA estimate is INR 3.25 billion by Motilal Oswal and the highest estimate is INR 3.79 billion by Kotak.
Gland Pharma's EBITDA margin is expected to be 25.5% in the latest quarter, up 110 bps on quarter and up 658 bps on year, Kotak said. However, the EBITDA margin is expected to remain flat around 24% on quarter, Nirmal Bang Equities Pvt. Ltd. said. The company will announce its earnings Tuesday.
Of the nine research reports for the company available with Informist, four have a "hold" recommendation on the stock with an average target price of INR 2,303. Three brokerages have a "buy" recommendation and two have a "sell" recommendation on the stock.
Friday, shares of Gland Pharma closed at INR 1,978.50 on the National Stock Exchange, down 4.2%. The stock is up 26% since the company announced its March quarter earnings.
Following are the June quarter earnings estimates for Gland Pharma Ltd. based on reports from four brokerages in descending order of estimate of net profit:
Brokerage | Net Sales(INR million) | Net Profit(INR million) | EBITDA(INR million) |
Kotak Institutional Equities | 14,911.00 | 2,247.00 | 3,795.00 |
YES Securities (India) Ltd | 14,973.00 | 2,132.00 | 3,751.00 |
Nirmal Bang Equities Pvt Ltd | 15,138.00 | 2,011.00 | 3,685.00 |
Motilal Oswal Financial Services Ltd | 15,196.00 | 1,862.00 | 3,252.00 |
Average | 15,054.50 | 2,063.00 | 3,620.75 |
End
Edited by Deepshikha Bhardwaj
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