Abbott India power brands and GLP-1 launches support earnings growth despite Novo weakness

Investment View and Key Thesis

ICICI Securities’ August 13, 2026 result update on Abbott India retains a BUY recommendation with a target price of Rs 32,210, compared with a CMP of Rs 27,650. The brokerage’s positive view is supported by the company’s sticky power brands, new-product launch momentum and expectation of market-aligned growth alongside improved profitability.

Abbott India is an MNC pharmaceutical company focused on therapies including gynaecology, gastrointestinal, hormones, pain and CNS, with more than 140 brands. Key brands include Thyronorm, Udiliv, Duphalac, Cremaffin Plus, Duphaston and Vertin. The company also markets selected Novo Nordisk and Abbott Healthcare brands and earns distribution margins on these products.

Q1 FY27 Financial Performance

In Q1 FY27, Abbott India reported revenue growth of 4.3 per cent year-on-year to Rs 1,813.7 crore, against a 12 per cent base. ICICI Securities viewed the sales growth as a negative surprise relative to approximately 12 per cent IQVIA growth for the June quarter, even allowing for differences in IQVIA compilation, and believes timing of recognition may have contributed.

The principal drag was de-growth in marketed Novo Nordisk brands, including Rybelsus, Human Mixtard and Novomix. However, profitability remained strong, with EBITDA rising about 17 per cent year-on-year to Rs 522.3 crore. EBITDA margin expanded 318 basis points year-on-year to 28.8 per cent, while PAT increased 17.1 per cent to about Rs 428.5 crore.

Power Brand Performance

The broker highlights resilient performance in several power brands. IQVIA MAT July 2026 data showed strong growth in Thyronorm, Ryzodeg, Cremaffin Plus, Vertin and Influvac. Udiliv and Duphaston also grew, while Duphalac growth moderated.

Except for Mixtard and Novomix, ICICI Securities notes that most power brands have continued to deliver 10-12 per cent growth according to IQVIA.

Portfolio Recalibration and Launch Momentum

Abbott India is recalibrating its portfolio, including an adjustment in slow-moving Novo brands and the induction of recently launched GLP-1 products such as Wegovy. The company is focusing on emerging therapeutic areas with unmet needs, evolving its go-to-market model for changing healthcare delivery, and strengthening institutional channels, corporate hospitals and specialty networks through targeted capability building and market-specific execution.

Abbott India has launched more than 100 products over the past 12 years and plans another 75 launches over the next five years. As the company does not hold quarterly earnings calls, ICICI Securities relies on IQVIA data for its operating assessment.

Earnings Forecasts and Valuation

The Rs 32,210 target price is based on 36 times FY28E EPS. ICICI Securities considers the premium valuation justified by Abbott India’s brand stickiness and launch momentum.

Key Risks

• Increasing generic competition in certain power brands.
• Lumpiness in distribution margins.