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The market expects Glenmark to do better than it ever has.
At today’s share price, buyers are assuming Glenmark grows about 13% a year, forever. Over the last ten years it actually grew about 9% a year. So the share price only makes sense if the business improves on its own track record. If it simply carries on as before, buyers today have paid for something they will not get.
- How it is valued: Discounted cash flow.
- What the price assumes: 13% growth, against 9% the model takes from its own record.
- Ten-year record: Between FY2018 and FY2026, Glenmark's revenue went from ₹9,103 crore to ₹16,983 crore — it compounded at about 8% a year over 8 years.
- Biggest swing factor: Branded markets. Main risk: FDA issues.
01A Mumbai drugmaker that invents as well as copies
Glenmark Pharmaceuticals, led by the Saldanha family, sells branded generics in India, Europe, emerging markets and the US, with strength in dermatology and respiratory medicines such as its Ryaltris nasal spray.
It has run its own innovation programme through Ichnos Glenmark Innovation. In 2024 it sold a majority of Glenmark Life Sciences, its API arm, to Nirma to reduce debt.
02What the market is assuming
Work backwards from today's share price and you can see what buyers are quietly taking for granted. Here is the growth that price implies for Glenmark, next to what the model assumes from the company's own record.
The further apart these two numbers are, the bigger the bet a buyer at today's price is making.
03Glenmark's record, in plain numbers
Between FY2018 and FY2026, Glenmark's revenue went from ₹9,103 crore to ₹16,983 crore — it compounded at about 8% a year over 8 years. It reported a net loss in FY2024, and closed the period with net profit of ₹1,362 crore. In FY2026 it kept 8.0% of revenue as net profit — against a low of -12.1% in FY2024 and a high of 9.4% in FY2019. The latest year added 27.5% to revenue, well ahead of its own long-run pace.
Revenue and earnings per share in ₹, return on equity and leverage as ratios — all from the filed statements.
Revenue and net profit by year (₹ crore)
| Year | Revenue | Net profit | Margin |
|---|---|---|---|
| FY2018 | 9,103 | 804 | 8.8% |
| FY2019 | 9,865 | 925 | 9.4% |
| FY2020 | 10,641 | 776 | 7.3% |
| FY2021 | 10,944 | 970 | 8.9% |
| FY2022 | 12,305 | 994 | 8.1% |
| FY2023 | 12,990 | 377 | 2.9% |
| FY2024 | 11,813 | -1,434 | -12.1% |
| FY2025 | 13,322 | 1,047 | 7.9% |
| FY2026 | 16,983 | 1,362 | 8.0% |
04How Glenmark gets valued — and why
Discounted cash flowThis business is valued on the cash it is expected to generate, discounted back at its cost of capital — with growth taken from its own ten-year record rather than from guidance.
05What decides Glenmark's value
Branded markets
India, Europe and emerging markets drive profit.
Specialty launches
Respiratory and dermatology products lift margins.
Innovation
Licensing deals for new molecules could add value.
Debt reduction
Lower borrowing improves flexibility.
06What could go wrong
- FDA issues. Plant inspection problems have hit US sales.
- R&D costs. Innovation spending weighs on profit.
- Price controls. India's drug-price rules cap some products.
07What the full Glenmark valuation shows
Sign in free to see the complete Glenmark valuation
- ✓Fair value per share — from a ten-year discounted cash flow, every step shown
- ✓The Workbench — change revenue growth, the discount rate or terminal growth and watch Glenmark's value move
- ✓Bull, base and bear cases — and exactly which assumptions move between them
- ✓Peer comparison — against Sun Pharma, Lupin and Cipla
- ✓Downloadable report — the full write-up, yours to keep
08Questions people ask about Glenmark
What is Glenmark known for?
Dermatology and respiratory medicines and its own drug-discovery work.
Why did Glenmark sell Glenmark Life Sciences?
To cut debt; Nirma bought a majority stake in 2024.
What is Ichnos?
Glenmark's innovation business developing new medicines.
Is Glenmark overvalued?
At ₹2,640 the market is pricing in roughly 13% sustained growth, against the ~9% its own record supports. That is more than it has delivered, so the price is justified only if the business can hold a rate it has not previously sustained.
What is the intrinsic value of Glenmark?
It is computed from the filed financial statements using the method that fits this business (discounted cash flow), with every assumption shown alongside the result. The per-share figure and the full working are in the report.
How much debt does Glenmark carry?
Debt to equity stands at 0.00, against 0.00 at the start of the period — the balance sheet is a core input to the cost of capital used here.