Pharmaceuticals

Divi’s Q2FY26 numbers beat consensus revenue/EBITDA/PAT by 5%/8%/13%. Gross margin came in at 60.5%, in line with Nuvama estimate. EBITDA margin came in at 32.7% (consensus at 31.6%).

Neuland beat consensus Q2FY26E revenue/EBITDA/PAT by 18%/46%/59%. EBITDA margin at 64.3% too came in 583bp ahead of consensus.

Torrent Pharma (TRP) beat Q2FY26E consensus revenue and EBITDA by 3% each. EBITDA margin came in at 32.8%, in line with consensus forecast. India/US/Brazil grew robustly at 12%/21%/13% YoY (cc).

Lupin delivered an all-round beat against consensus with Q2FY26 revenue/adjusted EBITDA/PAT up 8%/22%/30% YoY. Adjusted EBITDA margin at 30.3% beat consensus by 359bp. R&D spend is 7.5% of sales.

Aurobindo (ARBP) beat consensus Q2FY26 revenue/EBITDA by 2%/1% while PAT missed by 5%. EBITDA margin came in at 20.3%, in-line with consensus. US business at USD417mn was in-line with our estimates. R&D spend was 5% of

Sun Pharma (SUNP) beat Q2FY26 consensus estimates on all fronts. Revenue/adjusted EBITDA/adjusted PAT saw a 2%/2%/8% beat. R&D spend fell to 5.4% of sales. Adjusted EBITDA margin of 28.3% is in line with consensus. Gross

Ajanta Pharma’s Q2FY26 revenue/adjusted EBITDA/adjusted PAT beat consensus by 2%/3%/2% while adjusted EBITDA margin is 42bp ahead of consensus. The company reported a forex loss of INR0.4bn.

Jubilant Pharmova (JPL) beat our Q2FY26E revenue/EBITDA/PAT by 3%/12%/8%. EBITDA margin is robust at 17.4% (+135bp versus Nuvama estimate) while adjusted PAT stood at INR1.24bn.

Cipla’s Q2FY26 revenue beat consensus estimates by 2% while EBITDA/PAT were in line with estimates. EBITDA margin came in at 25% and missed consensus slightly due to higher R&D spend (7.1% of sales). Gross margin missed

Dr Reddy’s (DRRD) reported in-line Q2FY26 revenue while EBITDA/adjusted PAT beat consensus by 2%/8%. Gross/reported EBITDA margin contracted ~492bp/~175bp YoY due to anticipated price erosion in gRevlimid as well as

Cipla and Eli Lilly have signed a distribution and promotion agreement for tirzepatide (under a second brand named ‘Yurpeak’) in India. Lilly would supply the drug to Cipla, which would then be sold by Cipla at a price

We reckon revenue/EBITDA/PAT of our coverage universe would grow 9%/8%/10% YoY and 3%/2%/2% QoQ. Aggregate EBITDA margin stands at 26.1% (-21bp YoY/-38bp QoQ).

Pfizer has signed a deal with the Trump administration to cut drug prices for some of its products sold in the Medicaid channel. Medicaid is ~12% of the market; hence, the deal would have limited impact. However, this

We recently met with Ms Jayashree Satagopan, new CFO of Sun Pharma to understand the current vision of management on domestic and innovative business. Note that Sun has recently undergone several changes in management

The Biosecure Act is back under consideration in the US as per the draft bill, which we have reviewed. The draft is a diluted version of its predecessor. However, if approved, it can prohibit certain biotech companies of

Founded in 1984, Neuland is a fast-growing player in the complex contract manufacturing industry. We project 1.8x revenue growth over FY25–28E with the high-margin CMS segment contributing ~64% to revenue led by ramp-ups

After the recent successful trial results for its oral GLP-1 candidate Orforglipron, Eli Lilly is poised to submit the drug for regulatory approval. The drug would be launched globally, paving the way for part of 1bn of

Our pharma coverage reported revenue/EBITDA/PAT increase of 9%/9%/7% YoY in Q1FY26. EBITDA margin expanded 19bp YoY/92bp QoQ with cumulative R&D spend as a percentage of sales going up 25bp YoY. Best performers were

Orchid Pharma missed our Q1FY26E revenue/EBITDA/PAT by 27%/50%/29%. Revenue fell 29% YoY as the antibiotics industry faces challenges. EBITDA margin came in at 8.2%; PAT stood at INR149mn.