Gland Pharma shares extended gains in the capital markets after the company posted a standout Q4 performance, with consolidated net profit jumping 97% year‑on‑year to ₹367 crore, riding on a sharp improvement in operating leverage and a strong base‑business showing in the US. Revenue for the quarter rose 22% YoY to ₹1,743 crore, while EBITDA surged 48% YoY to ₹513 crore, lifting the EBITDA margin to around 29% and marking a clear reversal from the softer phase of the past few years.
US injectables and complex launches drive margins
The upbeat numbers were led by a 25% YoY jump in US revenues to ₹981 crore, supported by traction in the base portfolio, new launches such as Dalbavancin, and incremental contribution from CDMO contracts. Europe also delivered robust growth, with revenues rising about 36% YoY to ₹381 crore, while Rest‑of‑the‑World markets grew a modest 6%, helping the company maintain a healthy pricing and mix environment.
Analysts attribute the record‑high EBITDA margin primarily to better utilisation of injectables capacity, a richer mix of high‑value complex products, and a reduction in one‑off manufacturing and commercial costs that had weighed on earlier quarters.
Growth guidance and GLP‑1 pipeline overhang
Gland has guided for a 12–13% consolidated revenue CAGR over the next two years, with operating margins expected to stabilise around 26%, excluding any upside from the emerging GLP‑1 CDMO opportunity. The company has already contracted 140 million pen‑cartridge units of capacity, with multiple partners lined up for liraglutide, semaglutide, and tirzepatide, though the brokerage explicitly keeps GLP‑1 revenue out of its base case, treating it as a potential upside from FY27–FY29 onwards.
Market sentiment and rating punch
Capital‑markets coverage from Equirus Securities has upgraded the stock to LONG, with a target price of ₹2,309 (Dec 2026) on a 28x FY27 P/E, reflecting a 15% CAGR in EBITDA over FY26–FY29 and a steady improvement in return‑on‑invested‑capital from roughly 15% today to around 18% by FY29.
With Dalbavancin, multivitamin Infuvite, a growing CDMO book, and the GLP‑1 pipeline still largely in the wings, Gland Pharma is being positioned as a turnaround‑to‑growth story, where the market is now beginning to price in both base‑business recovery and optionality from complex injectables and diabetes‑care CDMO projects.
