Glenmark Pharmaceuticals
Turnaround: net cash, innovation royalties
- Last close
- ₹2,441.50
- 29 Sept 2026 · reference
- 1D · 1M
- +5.0% · −2.9%
- price-only
- Weight
- 2.4%
- 31 Jul 2026 · Aug rank 11
- Thesis review
- 8 Sep 2026
- Why We Own, p41
Approved description
Mumbai-based branded-generics and specialty pharma company with FY26 revenue of Rs 16,983 cr. Q1FY27 revenue split: India formulations Rs 1,432 cr (36%), North America Rs 1,097 cr (27%), Europe Rs 747 cr (19%), Emerging Markets Rs 730 cr (18%). Owns global respiratory brand Ryaltris (commercialised in 57 markets, secondary sales +40% YoY) and EU rights to dermatology brand Winlevi; innovation arm Ichnos Glenmark Innovation (IGI) out-licensed the trispecific myeloma antibody ISB 2001 to AbbVie in July 2025 ($700 mn upfront, up to $1.225 bn milestones plus double-digit royalties). Balance sheet moved from Rs 2,473 cr borrowings (Mar-25) to gross-debt-zero with Rs 800-900 cr cash after the AbbVie upfront.
- 01Balance-sheet turnaround is done: borrowings fell from Rs 2,473 cr (Mar-25) to Rs 594 cr (Mar-26) and management now reports gross debt zero with Rs 800-900 cr cash, after the $700 mn AbbVie upfront for ISB 2001.
- 02Base business is growing faster than peers: Q1FY27 revenue +23.1% (18%+ ex deferred income) with India +15.5% vs IPM MAT growth of 10.2%; FY27 guidance is 18%+ base-business growth and 21-22% EBITDA margin vs 20.0% in Q1.
- 03Free optionality on innovation: ISB 2001 (AbbVie) carries up to $1.225 bn in milestones plus tiered double-digit royalties with 160+ patients dosed in Phase 1; ISB 2301 IND expected in CY2026 and could be the next out-licensing event.
- 04US respiratory pipeline is finally converting: first ANDA for fluticasone 44 mcg with 180-day exclusivity, fluticasone OTC nasal spray approved, Monroe injectables plant got a VAI EIR (Nov-2025), 53 ANDAs pending and 2-3 more respiratory approvals expected in H2FY27.
- 05Domestic GLP-1 lever: GLIPIQ semaglutide launched 21-Mar-2026 at Rs 325-440/week, the lowest price among the four day-one launchers (Ozempic Rs 2,200/week), while MOSL models 25% domestic-formulations CAGR FY26-28.
Reference close, with results-period markers
- 1Q Sep-25 end · 30 Sept 2025
- 2Q Dec-25 end · 31 Dec 2025
- 3Q Mar-26 end · 31 Mar 2026
- 4Q Jun-26 end · 30 Jun 2026
Quality score, technicals and Buoyant Score
Computing the scorecard…
Latest quarter · Q Jun-26
| Line (₹ cr) | Q Jun-26 | YoY | QoQ |
|---|---|---|---|
| Net Sales | 4,018 | +23.1% | +6.5% |
| Operating Profit | 805 | +38.6% | +5.5% |
| Net Profit | 483 | +930.5% | +60.5% |
Reported vs internal estimate: internal quarterly estimates are not in the supplied package; consensus feed not licensed. YoY/QoQ per PRD §12.5 (transitions, not %, on non-positive bases).
Position and valuation context
General industrial/consumer/IT preset: growth, margins, ROCE/ROIC, working capital, FCF, net debt; P/E, EV/EBITDA.
Sell-side targets are third-party views, not Buoyant's; the upside is recomputed on our reference close, so it differs from the figure printed at the broker's price date.
Valuation range
No headline target on this page; the book quotes the thesis and the risk rather than a target.
What we watch
- H2FY27: 2-3 US respiratory ANDA approvals expected (fluticasone 110 mcg, ipratropium bromide) plus gFlovent ramp from Monroe.
- CY2026: ISB 2301 IND filing (potential second out-licensing) and any AbbVie development milestone on ISB 2001 as Phase 1 dose-expansion data matures.
- Q2FY27 results (~early Nov-2026): first read on whether EBITDA margin is tracking the 21-22% FY27 guidance and on GLIPIQ semaglutide uptake in India.
- FY26 earnings quality: reported FY26 EBITDA of Rs 4,572 cr (27% OPM) includes ISB 2001 licensing income; clean run-rate EBITDA margin is ~20%, so headline TTM PE of 22x understates true valuation (~32x FY27E).
- Margin squeeze from geopolitics: management flagged API and logistics cost inflation hurting margins for 'at least 2 quarters'; Q1 gross and EBITDA margins contracted 122/119 bp ex licensing income.
- US regulatory/launch risk: 53 pending ANDAs and the gFlovent/gFlonase ramp depend on Monroe and Indian plants staying clean; ISB 2001 milestones are binary and none have triggered yet.