Gland Pharma Q1 Results: Net profit jumps 47% YoY to ₹317 crore; CDMO revenue rises 20%

Gland Pharma reported its June-quarter performance today, Monday, after market hours, with consolidated net profit rising 47% YoY to ₹317 crore, compared with ₹215.5 crore in Q1 FY26. However, on a sequential basis, net profit declined 14% from ₹366.7 crore in Q4 FY26.

Revenue from operations increased 20% YoY to ₹1,800 crore, from ₹1,505 crore in the year-ago quarter and was up 3% sequentially from ₹1,743 crore.

Business-wise, the CDMO business remained a key growth driver, with revenue rising 20% YoY to ₹891.5 crore, while also registering an 11% sequential increase from ₹806 crore, supported by recent product launches.

Gland Pharma has entered into a CDMO partnership with a global pharmaceutical company, with the products expected to generate an annualised revenue potential of approximately $90–100 million once fully commercialised.

Technology transfer activities are expected to be completed within two years, with revenues likely to commence from calendar year 2029, as per the company's regulatory filing.

Meanwhile, the B2B business revenue grew 19% YoY to ₹909 crore, although it declined 3% QoQ from ₹940 crore.

Within the company's market-wise performance, the US remained the largest contributor, with revenue rising 32% YoY to ₹981 crore, broadly flat sequentially. Revenue from Europe increased 20% YoY to ₹395.4 crore and 4% QoQ. India's revenue rose 12% YoY to ₹66.6 crore but declined marginally by 1% sequentially.

Commenting on the results, Srinivas Sadu, Executive Chairman of Gland Pharma, stated, “Our strong start to FY27 reflects the successful execution of our CDMO strategy and the resilience of our B2B business model."

"Growth was driven by recent product launches from the CDMO portfolio and strong customer demand for our diversified product mix. We continue to strengthen our growth platform through a robust CDMO pipeline, including investments in differentiated technologies and capacity expansions, which position us well for sustainable long-term growth," he further added.

At the operating level, EBITDA rose 34% YoY to ₹493 crore, compared with ₹368 crore in Q1 FY26, but declined 4% from ₹513 crore in the preceding quarter. EBITDA margin improved to 27% from 24% YoY but moderated from 29% in Q4 FY26, expanding 300 basis points YoY while contracting 200 basis points sequentially.

Stock rebounds 70% from March lows

The company’s shares have staged a strong comeback in recent months, recovering 70% from their March lows to trade at ₹2,667 apiece. The rally came after a prolonged period of stagnation.

With the latest run-up, the stock’s year-to-date gains have climbed to 55%, although it still remains 31% below its record high of ₹4,350 apiece.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.