Torrent Pharma, Apollo Hospitals, Hitachi, Somany, Lupin, J Kumar, MCX, Aster, Amber & More Q2 Review

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HDFC Securities Institutional Equities

Torrent Pharma - India, Brazil growth intact; visible scale-up in US

Ebitda grew 13% YoY (2% ahead of our/consensus estimates), with 14% YoY sales growth, led by 12% YoY growth in India, 21% growth in Brazil, and 8% QoQ growth in the US.

Torrent Pharmaceuticals Ltd. expects:

1. India to outperform IPM growth, driven by price increases, steady volumes, and new launches in focused therapies. The focus is to improve field-force productivity with new divisions for launches and expand market reach. Looking to add 300-400 MRs in FY26 to reach field force size of 7,000 – addition in existing chronic segment and new division;

2. 10-12% cc term growth in Brazil, led by traction in key brands and a pending pipeline of 20 products; plans to launch 4-5 branded generic annually over the next few years;

3. Germany business to remain soft in FY26 due to supplies constraint from its outsourced partnered; third-party supplies is expected to resolve by Q3 FY26 end;

4. steady scale-up in the US in FY26 with a focus on improving profitability supported by new launches and partnering in certain products;

5. to sustain/improve the Ebitda margin at/from 32.8% (for Q2 FY26) in FY26 despite step-up in R&D spend; and

6. target to retire the outstanding debt and turn net cash by H2 FY27.

It is looking to launch GLP-1 molecules on patent expiry in India (both OSD and injectable) and Brazil (approval process and timeline are uncertain).

On track to complete J.B Chemical stake acquisition soon (completing open offer by Dec-25 and to close transaction by Jan-26).

We believe Torrent Pharma is well-poised for steady growth, led by a strong branded franchise (new launches, consumer wellness, traction in Brazil—new launches in chronic) and gradual turnaround in US generics (profitability improvement and new launches) and Germany (tender wins), with margins steady around 32-34% over the next few years.

We have tweaked our EPS estimates for FY26/27E and revised the target price to Rs 3,980 (40x Q2 FY28E EPS; implying EV/ Ebitda of 25x). Maintain Add.

Somany Ceramics - Lackluster performance

Somany Ceramics Ltd.’s revenue grew 3% YoY, owing to growth in bathware and adhesives division, while tiles division remained muted. Tiles volume and NSR were broadly flat YoY.

Consequently, Ebitda fell 4% YoY, owing to lower gross margin, partially offset by lower fixed expense as other expenses declined 5% YoY, while employee expense grew by 1% YoY. Adjusted profit after tax declined 13% YoY, owing to decreased Ebitda, higher depreciation (up 37%), and increased taxes.

The company expects mid-to-high single-digit volume growth in FY26, revised down from the previously guided high single digits and lower than the low double-digit growth forecast from the Q4 FY25 call. Ebitda margin is still targeted to improve by 100-150 bps YoY in FY26, led by better capacity utilization.

October tile volumes showed modest growth. After factoring in the Q2 sub-par performance, we have cut our revenue estimates by 2% each and APAT estimates by 10/2/1% for FY26/27/28E.

We maintain Add on Somany Ceramics, with a revised target price of Rs 530/share.

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