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Informist, Saturday, Aug. 8, 2026

 

By Narayana Krishna

 

HYDERABAD - Gland Pharma Ltd. is expected to report a strong year-on-year growth in revenue and operating profit for the June quarter, driven by robust US sales, continued expansion of contract development and manufacturing organisation business, and an improving performance of its European arm Cenexi. However, a high base of the March quarter is likely to weigh on sequential growth.

 

The company is expected to post a consolidated net profit of over INR 3.0 billion for the June quarter, up nearly 43% on year but down over 16% on quarter, according to the average of estimates from eight brokerages. Estimates range from a high of INR 3.9 billion by Axis Securities Ltd. to a low of INR 2.9 billion by Nirmal Bang Equities Pvt. Ltd.

 

Revenue is projected to grow over 15% on year to about INR 17.4 billion, while remaining largely flat sequentially. The highest estimate for revenue is INR 18.2 billion by Elara Securities (India) Pvt. Ltd., while the lowest is at INR 16.9 billion by ICICI Securities Ltd. The variation in estimates reflects differing assumptions on the pace of ramp-up in new launches, traction in the US market, and recovery at Cenexi.

 

Gland Pharma is a global manufacturer of injectables and a growing contract development and manufacturing organisation with a significant exposure to the US and European markets.

 

US LEADS, CDMO GAINS

Analysts expect the US business to remain the primary growth driver, supported by new product launches and steady demand in injectables. ICICI Securities expects strong traction in the base portfolio, aided by launches such as Dalbavancin, an antibiotic used to treat bacterial infections, while YES Securities Ltd. highlighted incremental contribution from recent launches, including a multi-vitamin product.
 

The contract development and manufacturing organisation business is seen emerging as a key structural growth driver with increasing client additions and scale-up of complex development projects. Nirmal Bang expects continued momentum in this segment to support both revenue growth and margin profile.

 

The company's European arm Cenexi is expected to show gradual improvement, aided by better utilisation and a shift towards high-value products, according to Axis Securities and Kotak Securities Ltd. Margin recovery in the segment is likely to remain gradual, with ICICI Securities factoring in modest profitability during the quarter.

 

MARGINS

Gland Pharma's earnings before interest, tax, depreciation, and amortisation margin is expected to improve on a yearly basis, with estimates ranging between 24.9% and 31.8%, compared with 24.4% a year ago.

 

Gland Pharma's margin expansion for the quarter is likely to be driven by operating leverage, favourable foreign exchange movement, and a better product mix, particularly with increasing contribution from glucagon-like peptide-1 and insulin analog segments.
 

The company's June quarter EBITDA is estimated at INR 4.6 billion, up nearly 25% on year but down over 10.4% on quarter. The highest estimate of INR 5.7 billion is from Axis Securities and the lowest is INR 4.2 billion from ICICI Securities.

 

Key issues tracked by the analysts include traction in the US launch pipeline, progress in scaling up glucagon-like peptide-1 and insulin capacities, client additions in the CDMO business, and the pace of margin recovery at Cenexi.

 

Gland Pharma will announce its Apr–Jun earnings on Monday. Of the six research reports on the company available with Informist, five have a "buy" or equivalent recommendation on the stock with an average target price of INR 2,401 per share, while one have a "hold" recommendation on the stock with price target of INR 2,003 per share.

 

The stock has risen nearly 40% since the announcement of its March quarter earnings. On Friday, the company shares closed at INR 2,601 on the National Stock Exchange. 

 

Following are the Apr-Jun earnings estimates for Gland Pharma Ltd. from eight brokerage firms in descending order by estimate of net profit, in INR billion:

 

Brokerages	Net Sales	Net Profit	EBITDA
Axis Securities Ltd	18.01	3.88	5.73
YES Securities (India) Ltd	17.06	3.07	4.36
ICICI Securities Ltd	16.87	3.05	4.20
Bank of America global research	17.41	3.02	4.61
Kotak Securities Ltd	17.09	2.93	4.39
Motilal Oswal Financial Services Ltd	17.08	2.90	4.49
Nirmal Bang Equities Pvt Ltd	17.24	2.90	4.46
Elara Securities (India) Pvt Ltd	18.21	2.85	4.53
Average	17.37	3.07	4.60

 

End

 

US$1 = INR 95.21

 

 

Edited by Deepshikha Bhardwaj 

 

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