1. At a Glance – Blink and You’ll Miss the Punch
Gland Pharma is that introvert topper in class who doesn’t talk much but keeps topping exams. CMP at ₹1,690, market cap ₹27,848 Cr, Q3 FY26 sales ₹1,695 Cr (+22% YoY), and quarterly PAT ₹261 Cr (+36% YoY). Stock is down ~11% in 3 months, which tells you one thing clearly – market ka mood thoda bipolar hai. Despite a ROCE of just 11.9% and ROE of 7.8%, the company quietly throws off cash, stays nearly debt-free (D/E 0.03), and keeps launching complex injectables like it’s a Netflix series. Dividend yield at ~1.07% adds thoda emotional support. Valuation at ~32x P/E isn’t cheap-cheap, but this isn’t a momo FMCG stock either. Latest quarterly margins bounced back to 26% OPM. Question is simple: is Gland Pharma done disappointing, or just warming up?
2. Introduction – From COVID Hero to Market’s “Meh” Phase
Once upon a pandemic, Gland Pharma was the darling of Dalal Street. High margins, injectables boom, US exposure – sab kuch perfect lag raha tha. Then came post-COVID normalization, pricing pressure in the US, and the Cenexi acquisition, which dragged reported margins down from a spicy 34% in FY22 to a more sober 24% in FY24.
But markets have a short memory and even shorter patience. While stock returns over 5 years are negative (~-4.4%), the business hasn’t exactly collapsed. Revenue TTM stands at ₹6,113 Cr, PAT ₹847 Cr, and Q3 FY26 showed that growth hasn’t packed its bags and left.
So what are we looking at here? A structurally broken injectable story? Or a classic case of “market got bored, fundamentals didn’t”? Let’s open the books and do proper post-mortem.
3. Business Model – WTF Do They Even Do?
Gland Pharma is not your neighborhood pharma salesman pushing cough syrup. This is hardcore B2B injectable manufacturing.
- 98%
- revenue is B2B – contract development, manufacturing, dossiers, tech transfer.
- Products include vials, ampoules, pre-filled syringes, lyophilized injectables, oncology, ophthalmic solutions – basically things that scare most generic players.
- Presence in 60+ countries, with US still the biggest contributor (54% of H1 FY25 revenue).
They launched 85 molecules between FY22–FY24 and added 12 new US launches in H1 FY25 alone. This is not lazy execution. This is grinding, regulatory-heavy, headache-inducing execution.
Retail India B2C is just 2% of revenue – so no brand recall ads, no cricket sponsorships, no “doctor conference in Goa” drama.
If pharma businesses were restaurants, Gland would be the cloud kitchen supplying 5-star hotels quietly.
4. Financials Overview – Numbers Don’t Lie, They Just Roast Politely
Quarterly Performance Table (₹ Cr)
| Metric | Latest Qtr (Dec FY26) | YoY Qtr (Dec FY25) | Prev Qtr (Sep FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 1,695 | 1,384 | 1,487 | 22.5% | 14.0% |
| EBITDA* | 435 | 360 | 314 | 20.8% | 38.5% |
| PAT | 261 | 205 | 184 | 27.3% | 41.8% |
| EPS (₹) | 15.87 | 12.42 | 11.15 | 27.8% | 42.3% |
*Operating Profit used as EBITDA proxy as per available data.
Annualised EPS (Q3 Rule Applied):
Q1 EPS ₹13.08, Q2 EPS ₹11.15, Q3 EPS ₹15.87
Average = ₹13.37 → Annualised EPS ≈ ₹53.5
Margins are recovering, growth is back, and EPS momentum is clearly positive. So why is stock sulking?
5. Valuation Discussion – Fair Value Range (No Hopium Allowed)
Method 1: P/E
- Annualised EPS:
