J.P. Morgan India FTM 29 May 26 Alkem Laboratories; Ashok Leyland; India Power Equipment; General Insurance Corp of India; Oil and Natural Gas Corporation and More

Research evidence excerpt

J.P. Morgan India FTM 29 May 26 Alkem Laboratories; Ashok Leyland; India Power Equipment; General Insurance Corp of India; Oil and Natural Gas Corporation and More

Asia Pacific Equity Research

India First to Market 29 May 2026

Top Stories

Alkem Laboratories (Bansi Desai, CFA) (ALKEM IN, N)

Steady core but margin visibility limited

Alkem’s 4Q revenue grew 15% YoY with EBITDA margin at 14.4% in line with JPMe, as higher gross margins were offset by

elevated R&D and one-time costs. India sales rose 9% YoY, led by branded generics, with strong performance in both acute

and chronic segments. For FY26, India sales grew 9.7% (vs. IPM 9.0%), and management expects to outpace the market by

100–150bps in FY27, supported by semaglutide’s strong launch (11% unit share) and a rising chronic mix. On margins,

management delivered 20.4% in FY26 and now guides for 20–21% in FY27, but highlights that delivery remains a “moving

goalpost” given ongoing cost and supply chain pressures. Both Bio-CDMO (Enzene) and MedTech (Occlutech) are still early-

stage, with execution uncertainty more pronounced for MedTech. We raise FY27/28 EBITDA estimates by 3–4% on non-US

momentum, but with margin delivery and new growth forays yet to prove out, we maintain our Neutral rating and revise our PT

to Rs5,900 (18x EV/EBITDA).

Ashok Leyland (Amyn Pirani) (AL IN, N)

Pricing discipline likely to continue amid volatile demand trends

Ashok Leyland’s (AL) 4QFY26 results were a slight miss on JPMe while delivering a small beat on consensus expectations.

EBITDA at Rs 20.7bn (+15% YoY) was 2% below JPMe mainly due to higher staff and other expenses. Management refrained

from providing explicit growth and margin guidance for FY27. They believe that underlying demand drivers remain robust but