Nomura has maintained its neutral rating on Gland Pharma with a target price of ₹2,000 per share after the company reported a significant earnings miss in Q2FY26. The brokerage said that while the quarter was weak across operating parameters, management has guided for a strong recovery in the second half of the fiscal year.
Following the Q2 performance, Nomura has cut its earnings estimates by 11%, 7%, and 4% for FY26, FY27, and FY28, respectively. The firm expects growth to revive in FY27 and beyond, driven by opportunities in GLP-1 fill-finish contracts, new product launches, and volume growth at its European subsidiary, Cenexi.
Nomura said the company’s CDMO business and focus on complex injectables continue to provide long-term visibility, though near-term performance remains constrained by slower-than-expected recovery in key markets. It added that execution on recently won contracts and margin improvement from better product mix will be critical for earnings acceleration in FY26–27.
Disclaimer: The views and recommendations above are those of Nomura. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
