Upgrades

we maintain a BUY rating on the stock.

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

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...

Management remains optimistic about performance in other regulated markets, anticipating stronger revenue growth in FY26 as European partners prepare for product launches. The company also expects these markets to eventually generate...

Divi’s Laboratories’ (Divi’s) Q2FY26 result was in line with our expectations on all fronts. Constant currency growth slowed down to ~10.8% vs. 15% QoQ and 18% in FY25.

GlaxoSmithKline Pharmaceuticals (GSK) reported weak Q2FY26 result. Revenue growth was negatively impacted due to supply-led issues at a CMO (~INR 400mn) and temporary impact of GST rate cut (~INR 300); adjusting for it, growth in general medicines segment stood at 6-7%.

Torrent Pharma (TRP) delivered in-line financial performance for the quarter. YoY growth improved in the US generics and LATAM markets, led by new product launches and steady market share gains in the base portfolio.

Divi’s Laboratories (DIVI) delivered better-than-expected performance in 2Q with a 4%/10%/10% beat on revenue/EBITDA/PAT.

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...

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

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),...

Alembic Pharma’s (Alembic) Q2FY26 result beat our expectations – led by formulations exports (up 25.1% YoY) while India continued to grow at a modest pace (4.9% in Q2FY26).

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.

Cipla’s near-to-medium term outlook remains positive, underpinned by strong execution in domestic formulations and a visible ramp-up in complex generics and biosimilars in the U.S. market.

We revise our rating from HOLD to BUY

The revenues were largely in line except India which was impacted by lower acute respiratory sales. The management is confident of better performance from India in the ensuing quarters. FY26 is likely to be a year of some consolidation with the genericization of gRevlimid and flattish US sales as major launches are expected to pick up momentum in FY27. On the EBITDA margins front, the management is guiding a range of 22.7524% which is slightly below the H1 exit range, due to lower Lenalidomide sales and higher R&D. The future remains bright as the company expects critical launches such as gAdvair (respiratory) by H2FY26 and also has a...

Although the company continues to strengthen its presence through new launches, portfolio expansion, and biosimilar development, persistent pricing pressure in the U.S. generics business and adverse product mix are expected to remain key headwinds to its overall profitability.

Laurus Labs continues to shift toward a CDMO-led, technology-focused business model, leveraging its ARV portfolio as a steady cash generator.