Abbott India First Take: 4QFY26 - Margin ahead, PAT misses estimates

研报英文原文证据摘录

Abbott India First Take: 4QFY26 - Margin ahead, PAT misses estimates

Bansi Desai, CFA AC Asia Pacific Equity Research

(91 22) 6157 3581 12 May 2026 J P M O R G A N

bansi.desai@jpmorgan.com

Investment Thesis, Valuation and Risks

Abbott India (Neutral; Price Target: Rs27,500.00)

Investment Thesis

Abbott India, a subsidiary of Abbott Labs USA, stands as the sixth-largest pharmaceuticals

company in India with a 4% market share according to IQVIA. As the only multinational

among the top ten players, Abbott has historically outpaced its MNC peers, establishing

leadership positions across five key therapies and building a robust portfolio of large brands

(21 brands with over Rs1bn revenues as of FY25). However, recent developments,

including the phasing out of insulin pens by Novo Nordisk to prioritize GLP-1 products and

a lack of significant new product launches, have led to a more subdued growth outlook and

narrowed Abbott’s competitive advantage versus other MNCs in India. While the EBITDA

impact is expected to be limited (2–4%) given Abbott’s low single-digit marketing margins

on Novo’s portfolio, these headwinds temper near-term growth prospects. Despite its strong

therapeutic leadership, brand-building capabilities, and healthy financial position, we

believe the current environment warrants a Neutral rating, reflecting both structural

challenges and the absence of near-term catalysts.

Valuation

Our Mar-27 PT of Rs27,500 is based on 30x Mar-28E EPS, which is a ~30% discount to its

five-year historical average, due to subdued growth prospects, and comparable to consensus

one-year forward PER of GSK India.

Risks to Rating and Price Target

Upside risks include: Lower than expected decline in overall insulin portfolio, high growth