India Pharma Outlook Team | Friday, 10 April 2026
India’s pharmaceutical industry is likely to see pressure on its earnings from the US market in the coming quarter, even though domestic growth remains strong, according to a report by Nuvama Institutional Equities.
The report points to a mixed performance for the sector. While domestic sales continue to grow steadily, challenges in the US generics market are expected to drag down overall profitability. Falling drug prices and lower sales of key products in the US are likely to impact margins for many Indian pharma companies.
Overall, the sector’s revenue is expected to grow by around 10% year-on-year. However, profit growth may not keep pace. EBITDA is projected to rise by just 3%, while net profit decline could be around 6%. Margins are also likely to shrink, reflecting ongoing pricing pressure and cost challenges.
One of the biggest concerns remains the US generics market. Prices of generic drugs continue to fall due to intense competition, affecting revenues. In addition, some high-value drugs, such as Revlimid generics, are seeing reduced contribution compared to earlier periods. Company-specific issues related to product portfolios are also expected to play a role in weaker US performance.
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On the positive side, the Indian Pharmaceutical Market is showing healthy growth. Strong demand in chronic therapies like cardiac, anti-diabetic, and oncology is driving this momentum. The market is expected to grow by around 12%, supported by both higher volumes and steady demand.
Among therapy segments, oncology is expected to grow the fastest, followed by cardiac and anti-diabetic treatments. This trend reflects rising lifestyle-related health conditions and increased access to treatment across the country.
Major companies such as Sun Pharma, Dr. Reddy’s Laboratories, Zydus Lifesciences, and Ajanta Pharma are likely to benefit from this domestic strength. However, firms with higher exposure to the US market may continue to face earnings pressure.
In summary, while India’s pharma sector remains fundamentally strong, global headwinds—especially in the US—are expected to limit profit growth in the near term.
