Results: Gland Pharma Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

The quarterly results for Gland Pharma Limited (NSE:GLAND) were released last week, making it a good time to revisit its performance. Gland Pharma missed revenue estimates by 9.2%, coming in at₹14b, although statutory earnings per share (EPS) of ₹12.42 beat expectations, coming in 5.9% ahead of analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Gland Pharma

Taking into account the latest results, the current consensus from Gland Pharma's eleven analysts is for revenues of ₹65.6b in 2026. This would reflect a notable 14% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 43% to ₹60.98. In the lead-up to this report, the analysts had been modelling revenues of ₹68.9b and earnings per share (EPS) of ₹64.68 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

It'll come as no surprise then, to learn that the analysts have cut their price target 5.3% to ₹1,709. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Gland Pharma at ₹3,120 per share, while the most bearish prices it at ₹1,162. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Gland Pharma's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2026 being well below the historical 14% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% annually. Factoring in the forecast slowdown in growth, it looks like Gland Pharma is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Gland Pharma's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Gland Pharma going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Gland Pharma Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.