ICRA affirms Stable outlook for Indian pharma sector in FY2026
Pharma revenue projected to grow 9-11%, operating margins expected to remain steady
ICRA has affirmed a Stable outlook for the Indian pharmaceutical sector for FY2026, projecting revenue growth of 9-11 per cent for its sample set of companies.
Commenting on the sector, Mythri Macherla, Vice President and Sector Head, Corporate Ratings, ICRA, said, “Revenues of ICRA’s sample set of Indian pharmaceutical companies are expected to grow by 9-11 per cent in FY2026.”
She added, “This will be supported by healthy growth of 8-10 per cent in the domestic market and 15-17 per cent in the European markets, while pricing pressure on certain key drugs such as Lenalidomide will result in moderation in the growth in the US market to 4-6 per cent.”
The operating profit margin (OPM) for the sample set is expected to remain stable at 24-25 per cent in FY2026, supported by healthy performance in key markets and stable raw material costs.
“ICRA maintains its Stable outlook on the Indian pharmaceutical industry, arising from healthy earnings outlook coupled with a comfortable credit profile and strong liquidity position of major industry participants, despite higher capex outlay towards acquisitions, and R&D expenses,” Macherla noted.