Gland Pharma Share Price Fell 5% After Revenue Declines to ₹1,384 crore in Q3 FY25

Gland Pharma reported a year-on-year (YoY) rise in net profit for the third quarter of FY25, posting ₹205 crore, up from ₹192 crore in the same period last year. However, the company’s revenue from operations declined YoY to ₹1,384 crore in Q3 FY25, reflecting challenges in the market.

EBITDA and Margin Expansion

The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Q3 FY25 stood at ₹360 crore, registering a YoY increase. Despite the revenue decline, EBITDA margins improved significantly, expanding 300 basis points (bps) to 26%, indicating better cost management and operational efficiencies.

R&D and ANDA Filings

Gland Pharma’s R&D expenses stood at ₹43.7 crore, accounting for 4.3% of revenue in Q3 FY25. During the quarter, the company made four new abbreviated new drug application (ANDA) filings and received eight ANDA approvals in the United States.

Capital Expenditure and Regulatory Approvals

The company incurred a total capital expenditure (capex) of ₹138 crore in the quarter ended December 31, 2024.
Additionally, Gland Pharma received Establishment Inspection Reports (EIRs) from the USFDA, signalling the closure of inspections for its Dundigal and Pashamylaram facilities in Hyderabad, a key regulatory milestone for the company.

Progress in Complex Injectables

On the complex injectables front, Gland Pharma stated that it has completed nine filings in a targeted portfolio of 19 products.

• Of these, six complex products have already been launched.
• Three more are expected to receive approval soon.
• These products collectively target a market opportunity of $7.1 billion (IQVIA data), demonstrating strong growth potential for the company.

Additionally, 15 complex formulations under co-development with MAIA Pharmaceuticals Inc., a speciality injectable development company, have shown significant progress.

• These include seven 505(b)(2) filings and eight ANDAs, currently at different development stages.
• The company expects commercialization of these products to begin in FY27.

Expansion in Biologics Segment

Gland Pharma is also making strategic moves in the biologics segment. The company’s partnership with a leading pharmaceutical firm leverages its state-of-the-art biologics manufacturing facility in Genome Valley, Hyderabad.

This collaboration is expected to drive incremental revenue starting next financial year, further strengthening Gland Pharma’s position in the rapidly growing contract development and manufacturing organization (CDMO) segment.

Stock Performance

On February 4, 2025, Gland Pharma share price traded 5.28% lower at ₹1,440 as of 11:48 AM (IST). The stock touched a 52-week high of ₹2,220.95 on August 06, 2024, while hitting a 52-week low of ₹1,413.75 on January 28, 2025.

According to BSE data, the total traded volume stood at 0.11 lakh shares, with a turnover of ₹1.66 crore. At the current price, Gland Pharma shares are trading at a price-to-earnings (P/E) ratio of 21.16x, based on its trailing 12-month earnings per share (EPS) of ₹68.05, and a price-to-book (P/B) ratio of 2.59, as per exchange data.

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