Pharma firms likely to post 11% growth in sales, EBITDA in Q1FY26: Report

Mint

18 hours ago

New Delhi [India], July 6 (ANI): Pharmaceutical firms are expected to post 11 per cent year-on-year growth in both sales and EBITDA for the first quarter of Financial Year 2026 (Q1FY26), driven by sustained momentum across most markets, according to a report by Kotak Institutional Equities.
However, the report added that the muted domestic demand in April and March may slightly offset gains.
The hospitals segment is projected to see robust 17 per cent year-on-year growth in both sales and EBITDA, supported by increased footfalls, new bed additions, and a modest rise in ARPOB.
In diagnostics, volume growth, better mix, and M&A activity are expected to contribute to a 14 per cent YoY sales increase across the coverage.
"For pharma companies, we expect continued traction across most markets to drive 11%/11% yoy growth in overall sales/EBITDA in 1QFY26," the report added.
India's pharmaceutical market for FY 2023-24 is valued at USD 50 billion with domestic consumption valued at USD 23.5 billion and export valued at USD 26.5 billion.
The domestic pharma industry is considered to be the world's third largest by volume and 14th in terms of value of production. With an extremely diversified product base covering generic drugs, bulk drugs, over-the-counter drugs, vaccines, biosimilars, and biologics, the Indian pharmaceutical industry has a strong presence at the global level.
According to National Accounts Statistics 2024, published by the Ministry of Statistics and Programme Implementation, total output for industry i.e. Pharmaceuticals, medicinal and botanical products is Rs. 4,56,246 crores for FY 2022-23 at constant prices, of which value added is ₹ 1,75,583 crores.
As per government data 9,25,811 number of persons are engaged in Pharmaceuticals, medicinal and botanical products industry during FY 2022-23.
Research & Development (R&D) and innovation in Pharma Sector is done by number of institutions and organizations under various scientific Ministries/Departments.
The Department of Pharmaceuticals has set up seven National Institutes of Pharmaceutical Education & Research (NIPERs) as institutes of national importance, which besides imparting postgraduate and doctorate education, conduct high end research in various pharma specializations.
Further, Department has framed a "National Policy on Research & Development and Innovation in Pharma-MedTech Sector in India" to encourage R&D in pharmaceuticals and medical devices.
The policy also creates an ecosystem for innovation in the sector in order for India to become leader in drug discovery and innovative medical devices through incubating an entrepreneurial environment to build a robust ecosystem to ensure the holistic development of R&D and Innovation. (ANI)