Glenmark Pharma share price down 5% in 2 days; 'Sell' stock, says ICICI Securities

Shares of Glenmark Pharmaceuticals Ltd extended their decline for a second straight session on Tuesday, slipping 2 per cent following the drugmaker posted a weak June quarter performance. Also, an update from its US arm, which announced the launch of Micafungin for Injection USP in 50 mg/vial and 100 mg/vial single-dose formulations.

The stock slipped 1.69 per cent to touch a day’s low of Rs 1,940.95 on the BSE against its previous close of Rs 1,974.40. At 10:26 am, it was trading 0.63 per cent lower at Rs 1,961.95. The counter has corrected nearly 14 per cent from its 52-week high of Rs 2,286.15, while logging a decline of about 5 per cent over the past two sessions.

For the June quarter, Glenmark Pharma reported an 86.2 per cent jump in net profit at Rs 46.8 crore against Rs 340.2 crore in the corresponding quarter last year. Revenue grew marginally by 0.6 per cent to Rs 3,264 crore, against Rs 3,244 crore a year ago.

In its exchange filing, the company said Glenmark Pharmaceuticals Inc, USA will begin distribution of Micafungin for Injection in September 2025. The product is bioequivalent and therapeutically equivalent to Mycamine of Astellas Pharma US.

Marc Kikuchi, President & Business Head, North America, said the launch would help expand Glenmark’s portfolio in the institutional channel while reinforcing its commitment to provide quality and affordable alternatives for patients.

Brokerage ICICI Securities flagged that Glenmark’s Q1FY26 performance was below expectations due to muted performance across geographies. It highlighted that India business revenue grew a modest 3.7 per cent year-on-year, impacted by the discontinuation of smaller brands and weakness in the diabetes segment, while US sales fell 2.8 per cent year-on-year amid price erosion and limited product launches. 

The brokerage said that Glenmark recorded an exceptional charge of Rs 320 crore (USD 37.75 million) on account of pricing litigation settlement, while adjusted profit after tax declined 12 per cent year-on-year to Rs 312.9 crore.

ICICI Securities maintained a ‘SELL’ rating on the stock with a lower target price of Rs 1,570 (earlier Rs 1,620), implying a 20 per cent downside from current levels. The brokerage said it cut FY26/27 earnings estimates by 8–7 per cent to reflect lower margins and slower growth. 

Among technical indicators, the scrip is trading below its 5-day, 10-, 20- and 30-day simple moving averages (SMAs) but above 50-day, 100-, 150- and 200-day SMAs.