Glenmark Pharma falls 5% in 2 days on Q1 show; Here's what analysts suggest

Glenmark Pharma stock has tanked over 5 per cent after the company reported lower-than-expected performance in the June 2025 quarter, missing market estimates

Glenmark Pharmaceuticals share price today: Shares of pharma major Glenmark Pharmaceuticals extended losses on Tuesday, falling nearly 2 per cent to hit an intraday low of ₹1,940.7 on the NSE. 

 

In the last two trading sessions, the stock has tanked over 5 per cent after the company reported lower-than-expected performance in the June 2025 quarter (Q1FY26), missing market estimates. The stock has tumbled over 13 per cent from its 52-week high of ₹2,284.8 touched on July 11, 2025.

 

At 10:50 AM, Glenmark stock was trading 1.3 per cent lower at ₹1,948.7 per share, compared to the previous day's close of ₹1,973.9 on the NSE. In comparison, NSE Nifty50 was up 0.21 per cent at 24,929 levels. The market capitalisation of the company stood at ₹55,000 crore.    CATCH STOCK MARKET LIVE UPDATES TODAY

 

Glenmark Pharmaceuticals Q1 results

In the Q1FY26, the drug maker reported an 86.2 per cent year-on-year (Y-o-Y) decline in net profit at ₹46.8 crore compared to ₹340.2 crore in the year-ago period. However, the company revenue remained flat at ₹3,264 crore compared to ₹3,244 crore in the same quarter of previous fiscal. 

 

At the operating level, the company's earnings before interest, tax, depreciation and amortisation (Ebitda) feel 1.4 per cent to ₹580 crore in the reported quarter. Ebitda margins also slipped to 17.7 per cent from 18.1 per cent in the year-ago period. 

 

In India, revenue from formulation business came in at ₹1,239.9 crore in Q1FY26, up 3.7 per cent from ₹1,196.2 crore in the year-ago period. Revenue from North America business increased 8.9 per cent to ₹778 crore from ₹714.6 crore in the previous quarter.   ALSO READ | Vi shares extend rally even as analysts trim target; here's your strategy

Analysts on Glenmark Pharmaceuticals Q1 results  

According to analysts at Motilal Oswal Financial Services (MOFSL), Glenmark Pharma reported lower-than-expected performance in Q1FY26 due to lower business in the domestic formulation (DF), Europe and rest of the world (ROW) segments. Higher operating expenditure (Opex) also dented margins. 

 

The June 2025 quarter was an aberration in terms of Y-o-Y growth in Europe and Emerging markets for Glenmark. Adverse seasonality impacted emerging markets business and growth also moderated in European markets. However, the branded business delivered robust growth, the brokerage said.

 

However, MOFSL increased its earnings estimates for FY26/FY27 by 3 per cent /8 per cent, respectively, factoring in receipt of income from deal related to ISB2001, the recalibration of its DF portfolio, a moderation in EU/EM businesses, and regulatory constraints for the US business. 

 

"There has been considerable transformation in the business of Glenmark, with sale of API business, deal with ABBVIE on ISB 2001, and increased focus on profitable growth. Subsequently, it is resetting its DF business, enhancing its offering in injectables/respiratory space in US market, and driving brandedled growth in EU/EM markets," the brokerage said.   ALSO READ | Hero Moto shares surge 20% in August. What's driving the two-wheeler stock? 

MOFSL has mainted a 'Buy' rating on the stock with a target price of ₹2,400. 

Despite the lower-than-expected Q1 results, analysts at Choice Institutional Equities believe that Glenmark is past its transition phase and poised for strong growth across regions and metrics. 

 

"A healthy product pipeline of new launches (including Para IVs) alongside its legacy portfolio, such as Ryaltris and Winlevi, expected to enter new EU and EM markets, should underpin regional growth," the brokerage said in a note.

 

Choice has maintained a 'Buy' rating on the stock with a revised target price of ₹2,530 from ₹2,545 earlier.