Torrent Pharma, IndusInd Bank, Lodha, BIL, SAIL, Motherson Wiring, Petronet LNG, CDSL, TTK Prestige Q1 Review

Torrent Pharmaceuticals' Ebitda grew 13% YoY, with 11% YoY sales growth, led by 11% YoY growth in India, and 19% YoY growth in the US markets, steady gross margin, and moderate cost inflation. Lodha recorded Q1 FY26 presales of Rs 44.5 billion (+10.4/-7.5%YoY/QoQ), maintaining its quarterly run rate of >Rs 40 billion.

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HDFC Securities Institutional Equities

Torrent Pharma - Steady Q1; India growth and generics recovery intact

Torrent Pharmaceuticals Ltd.'s Ebitda grew 13% YoY (in line with our/consensus estimates), with 11% YoY sales growth, led by 11% YoY growth in India, and 19% YoY growth in the US markets, steady gross margin, and moderate cost inflation. The company 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. It plans to add 500–600 MRs across its focused chronic therapies (MR count at 6,600 as of Jun’25) in a phased manner; the consumer brands (10-15% of sales) will sustain strong momentum;

2. steady growth in Brazil, led by traction in key brands and new launches;

3. Germany business to remain soft in FY26 due to supplies constraint from its outsourced partnered (~75% of Germany business depends on third-party supplies);

4. steady scale-up in the US in FY26 with a focus on improving profitability over the next few quarters; planning 10+ launches in FY26 (4-5 in Q1 FY26);

5. to sustain/improve the Ebitda margin at/from 32.9% (adjusted margin for Q1 FY26) in FY26 despite step-up in R&D spend; and

6. ETR at 25-26% in FY26.

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

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 slightly tweaked our EPS estimates for FY26/27E and revised the target price to Rs 3,780 (40x Q1 FY28E EPS; implying EV/ Ebitda of 25x). Maintain Add.

Lodha - Stable performance

Lodha Ltd. recorded Q1 FY26 presales of Rs 44.5 billion (+10.4/-7.5%YoY/QoQ), maintaining its quarterly run rate of >Rs 40 billion. Presales growth is led by strong demand across segments, with premium to luxury segments leading the way. Collections were Rs 28.8 billion (+7.1/-35.1% YoY/QoQ).

The embedded Ebitda margin on presales was ~33%. In terms of launches, Lodha has launched a GDV of Rs 83 billion in Q1 FY26 with a saleable area of 3.9 msf and new launches contributed Rs 15 billion to presales.

In terms of business development, it has already achieved 90% of business development guidance of Rs 250 billion, with Rs 222 billion worth of projects added in Q1 FY26.

Key growth drivers include land monetization at Palava, targeting Rs 80 billion in township presales by 2030, with a high Ebitda margin of c.50%. Lodha is aiming for Rs 15 billion in annuity income by FY31.

The company aims to achieve 40-45% of its annual presales in H1 FY26, with major project launches slated for H2 FY26. Additionally, it plans to enter the Delhi NCR market, starting with a pilot project within the next 12 months, followed by a full-scale launch by FY27.

Lodha expects that FY26 presales shall grow by 20%. Given robust growth visibility, better-than expected GDV addition, and uptick in land prices (Palava may see price and volume increase as new infra projects get commissioned), we remain constructive.

Owing to the limited upside on our target price of Rs 1,311/share, we maintain our Add rating.

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