Gland Pharma Q4 Results Review: Core Weakness, Cenexi Hurdles Weigh On FY25 — Motilal Oswal Maintains 'Buy'

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Motilal Oswal Report

Gland Pharma Ltd. delivered marginally below-expected revenue (3% miss) in Q4 FY25. However, it delivered better-than-expected Ebitda (17% beat), due to higher contribution from milestone income/profit share. A higher tax rate led to in-line earnings for the quarter.

Q4 FY25 is the second consecutive quarter to witness YoY decline in core market sales to Rs 11 billion.

ROW markets (down 21% YoY to Rs 1.3 billion) also witnessed volume decline, affecting overall performance for Q4 FY25.

Cenexi’s production challenges at its Paris site and continuing normalcy at Belgium site moderated its YoY growth to 8% for Q4 FY25.

We cut our estimates by 7%/8% for FY26/FY27, factoring in-

1. manufacturing disruption at Cenexi’s site, and

2. gradual improvement in business of core markets.

We value Gland Pharma at 28x 12 months forward earnings to arrive at a price target of Rs 1,740.

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