New Delhi, 18 September (IANS). The Indian pharmaceutical sector may achieve a revenue growth of 7-9 percent in FY 2026 due to strong domestic and European demand, despite the slow pace in the US market. This information was given in a report on Thursday.
The rating agency ICRA said in a report that global adverse conditions and regulatory uncertainty are having negative impact on the Indian pharmaceutical export market in the US, but 8–10 percent increase in the domestic market and 10–12 percent in Europe.
In FY 2026, the operational benefits of companies are expected to remain stable at 24-25 percent, which is largely corresponding to 24.6 percent of FY 2025, which has helped with favorable raw material prices, better operating capacity and increasing stake of special products.
The report said that US revenue is estimated to be softened and in FY 2025, the growth rate on an annual basis will decrease from about 10 percent to 3-5 percent.
Kinjal Shah, Senior Vice President and Co-Group Head of ICRA said, “Sample set companies of ICRA recorded an increase of 10.3 percent on an annual basis in the first quarter of FY 26 due to increasing market share in chronic therapy, starting of new products and regular price increase. However Hui.”
The ICRA has maintained stable outulators for this sector, as there has been an increase in revenue and income of the sector, which is based on a healthy balance sheet, strong liquidity and strong operating benefits margin (OPM).
The rating agency stated that the better productivity of medical representatives, widespread growth in rural distribution, introduction of new products and recent GST rate deduction on life -saving drugs have led to promotion of domestic drug sales.
Companies are focusing more on complex molecules and specialty products than generic drugs. Therefore, the revenue spent on R&D is estimated to be stable at 6-7 percent.
-IANS
SKT/
