Hold GlaxoSmithKline Pharmaceuticals: target of Rs 2500: ICICI Securities

Hold

ICICI Securities's research report on GlaxoSmithKline Pharmaceuticals

GlaxoSmithKline Pharmaceuticals (GSK) reported weak Q2FY26 result. Revenue growth was negatively impacted due to supply-led issues at a CMO (~INR 400mn) and temporary impact of GST rate cut (~INR 300); adjusting for it, growth in general medicines segment stood at 6-7%. However, despite the slowdown in revenue, its EBITDA margin expanded 80bps to 32.6% due to tight control on cost. Vaccine portfolio (led by Shingrix) delivered double-digit growth, while launch of oncology drugs like Jemperli and Zejula in Aug’25 marked its entry in high-value specialty segment. Management targets double-digit growth ahead and is confident of maintaining its margin profile.

Outlook

We upgrade to HOLD (from Reduce) with a lower TP of INR 2,500, based on 38x FY27E EPS.

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