Summary:
Gland Pharma shares rallied nearly 10% after Q1 FY27 results showed strong growth, with revenue rising 20%, EBITDA 34% and net profit 47% YoY. Growth was led by the US business, CDMO operations and a strong product pipeline, while margins also improved. The company expects 15–16% revenue growth in FY27 and targets 20% CAGR from FY28 onwards. A new CDMO partnership could generate $90–100 million in annual revenue once fully commercialised.
Stocks of Gland Pharma shot up by nearly 10 percent on Tuesday after the drug-making firm delivered a stellar performance in Q1 FY27 with its revenues, EBITDA, and net profits showing impressive growth on a year-on-year basis. The company's stock hit a high of ₹2,929.65 on BSE. The stellar performance of the quarter was backed by impressive growth in the US and Europe, along with CDMO operations.
Gland Pharma Q1 FY27 Results
Gland Pharma reported operating revenues of ₹1,800.3 crore for Q1 FY27, which is a growth of 20% compared to ₹1,505.6 crore for Q1 FY26 and 3% compared to ₹1,742.8 crore. The gross profit grew by 19% to ₹1,175.9 crore, while the gross profit margin was 65%.
The EBITDA improved by 34% to ₹493 crore compared to ₹367.8 crore and the EBITDA margin improved to 27% from 24%. The adjusted EBITDA improved by 37% to ₹510.2 crore, while the adjusted EBITDA margin was 28% compared to 25%.
The profit before tax grew by 39% to ₹435 crore. The net profit grew by 47% to ₹317 crore from ₹215.5 crore and the PAT margin grew to 18% compared to 14%, which is an improvement of 330 basis points.
Gland Pharma invested ₹77.2 crore in R&D during the quarter, equivalent to 4% of revenue, primarily towards complex product development and filings.
CDMO and B2B Businesses Drive Growth
The contribution from the CDMO business was 50% of the total revenue, with revenue growing 20% to ₹891.5 crore YoY. Similarly, the B2B business was 50% of the total revenue, up 19% to ₹908.8 crore. B2B included B2C revenue of ₹15.2 crore.
Revenue in Gland Pharma’s US business was 32% higher at ₹981 crore YoY. The revenue in Europe increased 20% to ₹395.4 crore. In India, the revenue growth was 12% to ₹66.6 crore. Revenue outside of the Americas grew by 2% to ₹303.9 crore. However, in Canada, Australia, and New Zealand, revenue fell 28% to ₹53.4 crore
Product Launches and Pipeline
Four molecules were launched in the US market for the quarter, including Multi-Vitamin and Leucovorin calcium. Three ANDAs were filed and seven ANDAs were approved, bringing the total US ANDA filings to 389, with 342 being approved and 47 remaining pending.
Six complex drugs have already been launched, with three waiting for approvals. There are also 15 co-development drugs with Gland Pharma, out of which there are seven 505(b)(2) drugs and eight ANDAs with commercialization expected in FY28.
Gland Pharma has filed 21 ready to use infusion bags, out of which 18 have been approved and 11 drugs are being developed. The portfolio has an estimated US market opportunity of $644 million.
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New CDMO Partnership and Growth Outlook
Gland Pharma has made a CDMO deal with a leading pharma company in the world. This deal has annual revenue potential of $90-100 million per annum upon commercialisation of all the products involved. It will take two years to complete the technology transfer process while revenue generation will start from 2029.
Management's guidance for FY27 revenue growth is 15-16% on a constant currency basis, while the company is expecting to grow its revenue at a 20% CAGR from FY28 onwards in the next four years.
Why Did Gland Pharma Shares Surge?
The stock rallied after the results as investors reacted positively to the strong revenue and profit growth, particularly the 32% growth in the US market, improving profitability and continued CDMO momentum. The results also exceeded market expectations, with revenue, EBITDA and PAT beating estimates by around 5–9%.
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However, concerns remain around the sustainability of the company’s ambitious long-term growth guidance and the sharp recent rise in the stock. Some analysts believe the upside could be limited after the stock’s strong run.
Overall, Gland Pharma’s Q1 FY27 performance marked a strong start to the financial year, with US growth, CDMO expansion, complex product launches and a healthy pipeline emerging as key drivers for future growth.
