HSBC has maintained a ‘Hold’ rating on Glenmark Pharma while trimming its target price to ₹1,600 from ₹1,660 following a weaker-than-expected Q2 FY25 performance. The company reported higher overheads during the quarter, which dampened results despite strong India sales.
Glenmark’s revenue for Q2 FY25 rose 7.59% year-on-year to ₹3,400 crore, while EBITDA surged 37.4% to ₹569 crore, improving margins to 16.74% from 13.10% in Q2 FY24. The company posted a net profit of ₹354 crore, a significant turnaround from a loss of ₹180 crore in the same quarter last year.
HSBC highlighted that Glenmark’s US business remains crucial for better margins, with growth dependent on new product launches and increased supplies from its Monroe facility. The brokerage expects a pickup in US sales to drive improved execution in this segment, emphasizing that strong performance in the US will be key for the company’s overall profitability.
