Indian pharma cos' revenue to grow 7-9%
In FY26 amidst US market risks: Report
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New Delhi: The Indian pharmaceutical sector is expected to achieve 7-9 per cent revenue growth in FY 2026, driven by strong domestic and European demand, despite a significant slowdown in its US market, a report said on Thursday.
Ratings agency ICRA, in a report, said that global headwinds and regulatory uncertainties cast a shadow over its largest export market in the US, but 8-10 per cent growth is expected in the domestic market, with 10-12 per cent growth in Europe.
The operating profit margins of the companies are expected to remain resilient at 24-25 per cent in FY26, broadly in line with 24.6 per cent in FY25, aided by favourable raw material prices, improved operating leverage, and a rising share of specialty products.
US revenues are anticipated to moderate with YoY growth slowing 3-5 per cent from nearly 10 per cent in FY 2025, the report said.
