MUMBAI – Shares of Hyderabad-based Gland Pharma surged over 9% on Thursday, January 29, 2026, hitting an intraday high of ₹1,849 on the National Stock Exchange (NSE). The vertical rally follows the company’s strongest quarterly performance in its history, characterized by a sharp rebound in its core U.S. business and a long-awaited operational turnaround in its European subsidiary, Cenexi.
The stock emerged as one of the top gainers in the Nifty Pharma index, with trading volumes spiking to three times their daily average as institutional investors reacted to a clean beat on both revenue and profitability estimates for the third quarter (Q3FY26).
The Q3 Earnings Trigger: Profits Leap 28%
According to the regulatory filing released late Wednesday, Gland Pharma’s consolidated net profit jumped 28% year-on-year (YoY) to ₹261.5 crore. Excluding a one-time exceptional charge of ₹24.3 crore related to new labor code provisions, the company’s Adjusted PAT surged 37% to ₹279.7 crore, significantly outpacing street estimates.
The top-line performance was equally robust, with revenue from operations climbing 22.5% YoY to ₹1,695.4 crore. This marks the highest quarterly revenue ever recorded by the injectable specialist, signaling an end to the “flat growth” phase that had plagued the stock throughout much of 2025.
How Global Markets Drove the Surge
The rally is underpinned by two critical growth engines that fired simultaneously during the October-December period:
- U.S. Market Dominance: Revenue from the United States, which contributes more than half of Gland’s total income, grew 19% YoY to ₹868.5 crore. The growth was fueled by nine new molecule launches during the quarter, including high-demand products like Doxycycline and Acetazolamide.
- The European Turnaround: The company’s European business posted a staggering 54% rise in revenue, reaching ₹407.1 crore. This was largely driven by Cenexi, Gland’s French-Belgian unit, which achieved an EBITDA breakeven after a year of production disruptions.
Operational Efficiency and R&D Focus
Despite rising costs in the pharmaceutical sector, Gland Pharma maintained a healthy Adjusted EBITDA margin of 26%. The company also ramped up its Research and Development (R&D) expenditure to ₹65 crore (5.4% of revenue), specifically targeting “complex injectables” and new Contract Development and Manufacturing Organization (CDMO) contracts.
During the quarter, the company filed nine Abbreviated New Drug Applications (ANDAs) in the U.S. and received four approvals, strengthening its pipeline of 331 approved ANDAs.
Market Sentiment: Why Investors are Bullish Now
The stock’s 9% jump is seen as a “valuation catch-up” by many analysts. Prior to this results cycle, Gland Pharma was trading at a discount compared to peers like Divi’s Labs and Dr. Reddy’s.
“The management’s confidence in sustaining a 15% CAGR over the next five years, coupled with the breakeven at Cenexi, has removed the primary overhang on the stock,” noted a senior analyst at a Mumbai-based brokerage. Furthermore, the company’s strategic entry into a Nano Drug Delivery System for Oncology and its roadmap for GLP-1 drugs (weight-loss medications) have provided a fresh long-term narrative for investors.
What Happens Next
With the stock now trading above its 200-day moving average (DMA), technical analysts are eyeing a resistance level at ₹1,920. Investors will be closely watching for:
- CapEx Plans: Any further announcements regarding the proposed capacity expansion.
- USFDA Inspections: Continued compliance at its major injectable facilities.
- CDMO Ramp-up: New contract signings for complex biologics in the upcoming quarter.