Gland Pharma: Confidence coming back - Solid base business margin & growth outlook

Research evidence excerpt

Gland Pharma: Confidence coming back - Solid base business margin & growth outlook

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Gland Pharma

Confidence coming back - Solid base

business margin & growth outlook

Reiterate Rating: BUY | PO: 2,260 INR | Price: 1,868 INR

4Q beat aided by base business margins 15 May 2026

Gland’s consol EBITDA at Rs5.1bn was well ahead of BofAe aided by 40% margins in the Equity

base business (vs. 9MFY26 at 35%). The base business margin excluding profit share/

milestone also improved sharply (~30% vs. 21% in 9M) aided by higher volumes & new

Key ChangesCDMO contracts. Cenexi’s revenue moderated sequentially but lower cost helped the

business achieve positive EBITDA (vs. our expectation of a loss). While the Cenexi (Rs) Previous Current

revenue growth guidance seems to have moderated, the commentary on base business Price Obj. 2,200.00 2,260.00

growth visibility with upside from GLP1 & Fx would mean consensus earnings upgrade 2027E Rev (m) 75,035.4 73,431.1

(BofAe 16% higher than street). The stock has underperformed peers with scope for re- 2028E Rev (m) 85,916.9 84,543.8

rating given confidence in FY27 outlook and consensus upgrades. Reiterate Buy with 2029E Rev (m) NA 98,010.0

revised PO Rs2260 (Rs2200 previously). Estimate change in Ex-8. 2028E EPS 100.05 102.62

2029E EPS NA 127.26

Base business growth visibility better than past

Gland’s consol revenue guidance of 12-13% CC growth will be driven by base business Neha Manpuria >>

momentum with three key factors providing visibility – a) $40-50Mn of CDMO contract ResearchBofAS IndiaAnalyst

supplies including some that have already started in 4QFY26 and one large contract +91 22 6632 8307

starting from 3QFY27; b) new product launches in Mar-Apr (dalba & multi-vitamin neha.manpuria@bofa.com