Gland Pharma shares leaped 7% on Monday to touch a fresh 52-week high, extending an aggressive 93% year-to-date rally. Buyers poured in immediately after the opening bell. The catalyst was an explosive second-quarter earnings sheet: consolidated net profit jumped 58.2% year-on-year to ₹291 crore, up from ₹184 crore in the corresponding period last year.
Revenue from operations advanced 23.3% to ₹1,834 crore against ₹1,487 crore in the year-ago period. Operating leverage kicked in hard. Earnings before interest, tax, depreciation, and amortisation (EBITDA) surged 54.1% to ₹484 crore, pulling operating margins up 530 basis points to 26.4%.
American buyers drove the surge. Revenue from the United States leaped 42% to ₹1,179.5 crore, accounting for nearly two-thirds of the top line. European shipments rose 30% to ₹371 crore. Yet domestic and non-core markets wilted under pressure. India business tumbled 42% to ₹38.7 crore, while sales across Canada, Australia, and New Zealand dropped 18% to ₹40 crore. Rest-of-the-world revenue slipped 21% to ₹204.4 crore.
Gland Pharma's pivot toward contract development and manufacturing (CDMO) altered the revenue mix during the quarter, with the segment advancing 31% to generate ₹822.7 crore.
| Business Segment / Geography | Q2FY27 Revenue (₹ Cr) | YoY Growth (%) | Share of Revenue (%) |
|---|---|---|---|
| US Business | 1,179.5 | +42.0% | 64.3% |
| Europe | 371.0 | +30.0% | 20.2% |
| CDMO Segment | 822.7 | +31.0% | 44.9% |
| Critical Injectables | 1,010.9 | +18.0% | 55.1% |
| India Business | 38.7 | -42.0% | 2.1% |
Critical injectables remained the larger core, rising 18% to ₹1,010.9 crore to provide 55% of aggregate sales. But European operating subsidiary Cenexi stumbled, slipping back into an EBITDA loss following a planned facility shutdown.
Brokerages split sharply over where the stock trades next.
Nomura posted a conviction 'Buy' rating with a price target of ₹3,790 per share, arguing the market is witnessing a structural re-rating. The brokerage highlighted Gland Pharma's expanded capex roadmap—featuring ₹3,000 crore in brownfield allocations alongside greenfield investments—designed to scale biologics CDMO operations for global innovator clients.
Citi pushed back with a 'Sell' rating and a ₹2,360 target price. Its desk warned that sequential execution stalled, noting revenue grew just 2% quarter-on-quarter while EBITDA contracted 3%. The bank stated that current multiples already bake in aggressive growth assumptions, leaving little margin for error.
Yet executive leadership dismissed slowdown fears, reaffirming its full-year revenue growth guidance of 15% in constant currency terms—a sharp acceleration from the 10% to 12% pace clocked through the first half. Management expects Cenexi to return to operating profitability in the December quarter, keeping the company on track for its broader target of delivering a 20% compound annual growth rate through fiscal 2030.