Glenmark Misses Estimates But Technicals Suggest Upside Potential: SEBI RA A&Y Market Research

Glenmark Pharmaceuticals’ shares declined 3% on Monday after the company reported fourth-quarter earnings that fell short of street expectations, despite delivering a significant turnaround from last year’s losses. 

From a technical perspective, SEBI-registered advisor A&Y Market Research observed that Glenmark’s stock price has broken out above the weekly resistance at ₹1,262, indicating strong momentum. 

The absence of a retest at this level further suggests bullish sentiment. Key levels to monitor include support at ₹1,262 and resistance at ₹1,554, with potential mid- to long-term targets at ₹1,832, ₹2,017, and ₹2,201, according to them. 

A breakout above ₹1,554 would signal a trend reversal to the upside, warranting close observation of price action around these critical levels.

The pharma major posted a consolidated revenue of ₹3,256 crore for the March quarter, marking a 6.3% year-on-year increase driven largely by strong performances in India and Europe. 

However, the topline figure missed Bloomberg’s estimate of ₹3,365 crore, reflecting slower-than-expected recovery momentum.

While Glenmark returned to profitability, reporting a net profit of ₹4.7 crore versus a loss of ₹1,218 crore in the same quarter last year, the EBITDA margin improvement to 17.2% (from 16.5%) also remained below the forecast. 

The earnings miss, despite operational gains, weighed on investor sentiment, dragging the stock down.

Operationally, the company maintained its focus on product development and regulatory progress. During FY25, Glenmark launched 13 new products, including seven in the March quarter alone, and received five ANDA approvals. 

Notably, it also filed for one strength of gFlovent MDI, a significant move given the drug's sizable market share within the Flovent category.

Despite the muted Q4 print, global brokerage Nomura retained its ‘Neutral’ rating on Glenmark, setting a target price of ₹1,500 by September 2025. The valuation was based on a sum-of-the-parts model and a 17.5x forward earnings multiple for September 2026.

Glenmark Pharma shares have declined 14% year-to-date (YTD).

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