Gland Pharma Q1 Review: Brokerages Divided—Jefferies Upgrades Rating To Hold, Citi Maintains Sell

Brokerages are divided in their views on Gland Pharma Ltd., post first quarter of fiscal 2025-26. Jefferies has upgraded its rating to 'hold' from 'underperform' and hiked the target price to Rs 1,950 from Rs 1,350. Meanwhile, Citi has maintained a 'sell' rating, with a target price at Rs 1,680.

Jefferies upgradeed Gland Pharma to hold, as it believe earnings downcycle for the company is behind and in next 1-2 years can benefit from the generic GLP driven tailwinds. "Our FY26-27 EPS moves up by 2-5% on higher growth and margin profile. We value Gland at 25 times Sept. 27 EPS with our price target," it added.

The brokerage believes Gland Pharma's earnings have bottomed out but current valuations leave little upside.

The company's Q1 results were operationally in-line with Jefferies estimates driven by turnaround in Cenexi which benefitted from launch of higher value projects and better capacity utilisation.

The brokerage noted that the company's revenue is a miss but Cenexi breakeven leads to in-line Ebitda. "US growth below par but guidance strong for the year, as GLP helps to drive strong growth in core markets. Meanwhile, Europe growth is supported by new launches," it added.

Citi noted that commentary around GLP-1 Pen/Cartridge pickup may moderate Street expectations.

"Gland Pharma numbers were in-line as subdued performance in the base-line business has been offset by recovery in Cenexy, a key positive in the quarter," it added.

The brokerage highlighted management was upbeat on Cenexy outlook.

"The company launched 12 new molecules in regulated markets, including Colistimethate, Epinephrine, Vancomycin. Lairaglutide and Acetaminophen bags. The company is increasing GLP-1 pen capacity from 40m to 140m. However, a major ramp-up in FY29-30," it added.

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