Gland Pharma posted revenue in line with our estimate in Q1 FY26. However, Ebitda/PAT exceeded our estimates (13%/16% beat). Strong traction in Europe, Canada, Australia, NZ and the rest of the world, along with better operational efficiency at Cenexi, led to improved performance for the quarter.
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Motilal Oswal Report
We cut our estimates by 7%/8% for FY26/FY27, factoring in-
manufacturing disruption at Cenexi's site, and
gradual improvement in business of core markets.
We value Gland Pharma Ltd. at 28 times 12 months forward earnings to arrive at a target price of Rs 1,740.
Gland Pharma has faced deterioration in earnings over past three years due to increased competition in its base products and operational losses at its Cenexi business. Having said this,
largely steady price erosion in the base portfolio,
new launches across key markets, and
improving operating performance of Cenexi would drive a 20% earnings CAGR over FY25-27.
Maintain Buy.
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