ICICI Securities's research report on Abbott India
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. Better product mix may have fuelled a 192bps expansion in gross margin in Q2, while cost efficiencies boosted EBITDA margin to an all-time high of 28.6%. Timely price hikes on non-NLEM portfolio along with operating leverage may help it further improve margins in coming year. At the end of H1FY26, it had a strong cash balance of ~INR 12.8bn (~2% of mcap).
Outlook
We raise FY26/27E EPS by ~2% to factor in better margins. Upgrade to BUY with a lower TP of INR 34,500, based on 38x FY27E EPS.
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Abbott India _10112025_ICICI Securities