Emcure Pharma shares hit 10% upper circuit after FY27 guidance hike; Jefferies raises target price by 8%

ETMarkets.com

Higher growth guidance and a strong product pipeline strengthen the case for Emcure Pharma, with brokerages raising their targets.

The company reported a 29.3% year-on-year (YoY) increase in adjusted profit after tax (PAT) for the second quarter of FY27. The company's adjusted PAT rose to Rs 325.1 crore in Q2FY27, up from Rs 251.4 crore reported in the corresponding quarter of the previous financial year.

Revenue from operations increased 24.3% YoY to Rs 2,820.5 crore in the second quarter, from Rs 2,269.8 crore in Q2FY26. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 30.9% YoY to Rs 574.8 crore, compared with Rs 439.1 crore in the year-ago quarter. EBITDA margin improved by 103 basis points to 20.4%, from 19.3% in Q2FY26.

What are analysts saying?

Jefferies raised the target price to Rs 2,500 from Rs 2,320, forecasting an upside of 33% from current market levels. It said the company delivered a 7-10% beat on its revenue/EBITDA/PAT estimates, driven by stronger growth across international markets. The management also raised FY27 guidance, expecting revenue growth over 20% from the earlier mid-teens forecast. EBITDA margin improvement of about 100 basis points from the previous margin guidance also bodes well for the company. “We remain positive on the near- to mid-term outlook, supported by multiple growth drivers and operating-leverage benefits,” the foreign brokerage said in a note.

Emcure’s India growth improved to 12% YoY and about 10% sequentially on the back of a sequential growth in Zuventus. Jefferies said the company's organic growth improved to 10% year-on-year in the September 2026 quarter, compared with 6% in the June 2026 quarter. Management expects growth to accelerate further, with the March 2027 quarter likely to match or exceed industry growth.

In its Diwali picks, HDFC Securities assigned a target price of Rs 2,208 (17% upside). It said Emcure’s domestic formulation (DF) segment has been growing strongly, led by gynaecology, anti-infective, cardiac and anti-diabetic therapeutic areas. Key brands have been gaining market share while new launches are also driving growth for the DF segment. Key brands such as Orofer, Amaryl M, Bevon, Clexane, Maxtra, Zostum, Feronia-XT, among others, are well-established in the domestic market.

Emcure commentary

The company expects growth momentum across various international markets to continue, driven by Amphotericin B, other new product launches, along with growth in the base business. Emcure highlighted Treprostinil as another upcoming differentiated launch in international markets, a low-volume, high-value product.

The company believes Amphotericin B has significant headroom, with product launches planned across 20 European countries and approvals already in place in Brazil, Mexico and Colombia.

Jeffeiries added that regulatory momentum continues across key markets. During the quarter under review, Emcure received more than 20 product approvals across developed and emerging markets, including a positive SEC recommendation in India for Lenacapavir injection for PrEP, approvals for Liposomal Amphotericin B in Brazil and Mexico, and Bevacizumab for wet age-related macular degeneration in India.

During the quarter, Emcure also filed the Lenacapavir injection dossier with the WHO and US FDA, further advancing its global regulatory pipeline.