Buy

Lupin remains well-positioned to sustain its strong growth trajectory, supported by a healthy specialty pipeline in the U.S., improved product mix, and operating leverage gains.

Niche launches in the US drive numbers; future pipeline key for sustainability Earning momentum strong till FY26; apparent slowdown in FY27 but pipeline buildup to continue- Strong growth was attributable US launches under exclusivity (gMyrbetriq, gTolvaptan and gSpiriva) and launches across regions. India was impacted due to lower tender sales in Institutional business. The company has maintained the strong EBITDA margins trajectory mainly driven by strong GPM performance. The...

We maintain a BUY with a TP of Rs 610/share, reflecting 17% upside from the CMP.

Firm expansion plans in place- In the US, the company is optically transitioning to B2C model to focus on high margin products. The company is also looking for third party ANDAs (4 already acquired, 5 more to come) as well as outsourcing some in-house products to the CMOs for optimal plant utilisation. This, we believe is a part of larger strategy where the company wants to increase the offerings via front-end and at the same time focusing on margin expansion. The legacy LatAm growth was slower seemingly on account of some saturation in the existing markets and focus...

Q2FY26- Muted numbers on expected lines Revenues grew ~6% YoY to 8286 crore due to softness in the US (44% of the revenues) which grew 3% to 3638 crore. Europe (30% of the revenues) grew 18% to 2480 crore and ARV (~4% of the revenues) grew 68% to 325 crore. Growth Markets (~10% of the revenues) grew ~9% YoY to 882 crore (including India formulations). APIs de-grew at 17% YoY to 961 crores. EBITDA grew 7% YoY to 1678 crore while EBITDA margins increased 16 bps to 20.3%. EBITDA de-growth was mainly driven by increase in employee expenses....

Abbott India’s (Abbott) Q2FY26 revenue grew at a modest pace of 7.6% YoY. We believe moderation in growth was mainly due to discontinuation of insulin pens for Human Mixtard, Levemir and Xultophy by Novo Nordisk in India as it prioritises capacity for GLP-1 brands Ozempic and Wegovy.

Q2FY26- Decent print driven by growth in some power brands- Revenues grew ~8% YoY to 1757 crore. As per IQVIA, some of the power brands such as Thyronorm (Hormonal), Udiliv (GI), Cremaffin Plus (GI) and Duphalac (GI) witnessed decent growth along with some marketed brands of Novo Nordisk and Abbott Healthcare such as Rybelsus (Semaglutide) and Ryzodeg (Insulin). While Mixtard (Insulin) and Novomix (Anti-Diabetic) registered de-growth during the quarter. EBITDA grew ~14% YoY to 502...

We maintain our BUY recommendation on the stock with a TP of Rs 1,345/share.

We remain constructive on Zydus Lifesciences given its improving business mix, continued progress on complex launches, and stable performance in India formulations.

Well prepated for a long term sustainable growth developer and manufacturer of APIs (~93% of FY25 revenues) with major focus in chronic therapeutic areas such as cardiovascular disease, central nervous system disease, pain management and diabetes. GLS caters to over 700 customers in more...

Aurobindo’s Q2FY26 performance was steady, helped by its Europe (+17.8%) and ARV (68.4%) verticals. US sales, at USD 417mn, beat our expectation; though, gRevlimid sales slipped sequentially.

Q2FY26- Decent numbers despite flat US growth - Revenues grew ~9% YoY to 14478.3 crore driven mainly by growth in India, global specialty portfolio (now named as Innovative products), RoW and Emerging Markets. India growth was strong at 11% to 4735 crore. The US remained flat YoY with a revenue of 4329 crore due to weakness in generics which was made good by Innovative traction to some extent. RoW markets reported growth of ~23% to 2041 crore, mainly due to growth in both generics and specialty. Emerging markets grew ~16% to 2837 crore,...

Aurobindo Pharma (ARBP) reported an in-line performance in 2QFY26. Interestingly, the quarter saw lower contribution from g-Revlimid compared to earlier quarters.

Piramal Pharma (PIRPHARM) delivered in-line revenue for 2QFY62. However, it delivered a miss on EBITDA/PAT for the quarter. Higher operational costs impacted the quarter’s performance.

Sun Pharma (SUNP) delivered in-line revenue/EBITDA in 2QFY26. Earnings came in below our estimates largely due to lower other income.

Sun’s 2QFY26 EBITDA was ahead of the street and our estimates (by ~12%), on the back of a marginally higher gross margin and lower R&D spend.

Alembic Pharma is expected to maintain steady growth momentum supported by its expanding complex generics portfolio in the US, sustained traction in Ex-US markets, and a gradual recovery in the domestic formulations business.

Blue Jet Healthcare (BLUEJET) reported revenue of INR1.7b, marking a decline of 21% YoY, primarily due to a higher proportion of goods remaining in transit, which led to delayed revenue recognition.

Blue Jet Healthcare (BlueJet)’s Q2FY26 print was impacted from a delay in revenue recognition in contrast media and lumpiness in the PI/API segment along with volatility in gross profit margin, making quarterlies non-representative and analysis difficult.

We continue to focus on Jubilant's flagship segments such as Radiopharmaceuticals, Allergy Immunotherapy, CDMO Sterile Injectables and Drug Discovery Services which together contribute ~53% of the sales and more than 90% of the EBITDA on the back of their high-margin profile. Their performances are also critical in order to achieve the management's aspirational target for FY30 - doubling of overall revenues (FY24 base),...