Gland Pharma (GLAND IN) (Buy) - 4QFY26: Significantly higher than our estimates

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Gland Pharma (GLAND IN) (Buy) - 4QFY26: Significantly higher than our estimates

Global Markets Research

Gland Pharma GLAD.NS GLAND IN 17 May 2026

EQUITY: HEALTH CARE & PHARMACEUTICALS

Rating4QFY26: Significantly higher than our estimates Remains Buy

Target priceBusiness development efforts, capacity building could Increased from INR 2,390accelerate growth; maintain Buy INR 2,000

4QFY26: Strong beat to our and consensus estimates Closing15 May 2026price INR 1,868

GLAND’s 4QFY26 sales/EBITDA/PAT beat our estimates by 6%/30%/55% and consensus

estimates by 5%/22%/44% (Fig.2). A step-up in US revenues, steady Cenexi revenues despite Implied upside +27.9%

some disruptions in operations in the initial period of the quarter, CDMO contracts and INR

depreciation supported revenue growth. For the base business (ex-Cenexi), CDMO contracts Market Cap (USD mn) 3,207.8

grew 33% y-y/65% y-y for FY26/4QFY26, indicating the segment as a key growth driver. New ADT (USD mn) 2.0

launches and market share gains through new contracts supported US growth in the quarter.

EBITDA margin expanded 505bp y-y, and was 548bp ahead of our estimates, as operating Relative performance chart

leverage played out.

Management provides a sanguine outlook

Management expects 12-13% constant currency revenue growth in FY27E. The revenue growth

is likely to accelerate to ~15% in FY28E and to ~19-20% in FY29E, driven by new complex

product launches and contribution from new CDMO contracts. The increase in capacity utilisation

of the new pen/cartridge fill finish line (capacity increased to 140mn from 40mn) can also be a

growth driver, according to management. In FY25, the company announced that in order to

address the new opportunities unfolding, it intends to invest INR20bn in capex over FY26-30E.