Indian Pharmaceutical Industry Poised for 10% Growth in FY26
A report by ICICI Securities projects a robust 10% growth in India's pharmaceutical sector in FY26, fueled by price hikes and new product launches. The U.S. market faces challenges due to fierce competition, while export-oriented companies show strong performance and R&D spending sees a slight dip.
- Country:
- India
India's pharmaceutical industry is projected to grow by around 10% in FY26, driven by price increases and the introduction of new products, according to a report from ICICI Securities. The report emphasizes growth supported mainly by the Rest of the World markets rather than the core markets like the United States and India.
The growth rate in the Indian and U.S. markets showed a more conservative rise, pegged at 10.2% and 6.5% respectively. Particularly in the U.S., price competition for generic Revlimid remains a significant concern, likely affecting future earnings.
Despite these challenges, companies have reported robust earnings, with 11.2% growth in revenue and 12.6% in EBITDA. The pharma sector also noted improvement in EBITDA margin, supported by operational efficiencies. ICICI Securities maintains an optimistic forecast for the sector in FY26, citing resilient domestic markets and promising new product pipelines as key growth drivers.
(With inputs from agencies.)
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