Indian pharmaceutical market records 17.1% growth in September: Equirus Securities

India’s pharmaceutical market (IPM) recorded year-on-year growth of 17.1 per cent in September 2026, its strongest monthly performance in three years, accelerating from 13.1 per cent in August 2026 and significantly ahead of the 6.6 per cent recorded in September 2025. Market sales stood at approximately ₹253 billion during the month, while unit growth rose to 5.4 per cent, the strongest monthly reading since October 2023, according to a sector report by Equirus Securities.

For the second quarter of FY2027, IPM sales stood at ₹746.1 billion, registering growth of 14.7 per cent year-on-year, compared with 7.7 per cent in 2QFY26 and 13.9 per cent in 1QFY27. The quarter marked the strongest growth in the series. On a moving annual total (MAT) basis, market growth improved to 13.2 per cent in September, from 12.3 per cent in August 2026 and 7.9 per cent in September 2025.

The composition of market growth also continued to improve, with volume emerging as the largest contributor. On a MAT basis, volume, price and new introductions contributed 4.9 per cent, 4.8 per cent and 3.4 per cent, respectively, compared with 0.9 per cent, 4.6 per cent and 2.4 per cent a year earlier. The improvement reflects a broader recovery in demand, with market growth becoming less dependent on price increases alone.

Chronic therapies grew 16.8 per cent on a MAT basis, compared with 10.9 per cent for acute therapies. While chronic therapies remained the principal structural growth driver, the improvement in acute therapies indicated that market momentum was broadening across segments.

Broad-based therapy growth; respiratory remains an exception

Eight of the ten key therapy segments recorded growth above the mid-teens in September. Vitamins, Minerals and Nutritionals (VMN) led with 22.2 per cent growth, followed by Anti-Diabetic at 21.2 per cent and Cardiac at 20.4 per cent. Pain grew 20.0 per cent, Dermatology 19.6 per cent, Neuro/CNS 17.9 per cent, Gastroenterology 17.6 per cent and Gynaecology 16.6 per cent.

The quarterly trend was similarly strong, with Anti-Diabetic growing 19.3 per cent, VMN 18.5 per cent and Cardiac 17.5 per cent in 2QFY27. Pain recorded growth of 16.5 per cent, while Neuro/CNS grew 15.2 per cent.

Respiratory remained the principal exception, growing 3.1 per cent in September against a high base of 15.1 per cent in September 2025. The segment recorded growth of 5.3 per cent during the quarter. Anti-Infectives, meanwhile, recovered to 9.3 per cent growth in September from 3.6 per cent in August.

Outside the ten key therapy segments, Oncology grew 29.4 per cent in September and 27.5 per cent during the quarter. Vaccines and Urology recorded quarterly growth of 20.0 per cent and 19.3 per cent, respectively.

All ten tracked pharma companies record double-digit growth

All ten tracked pharma companies recorded double-digit growth in September for the sixth consecutive month. However, only five outperformed the IPM’s 17.1 per cent growth, compared with seven companies in August.

Zydus led the September rankings with 19.7 per cent growth, followed by Torrent at 18.9 per cent, Sun Pharma at 17.6 per cent, Mankind Pharma at 17.3 per cent and Dr. Reddy’s at 17.2 per cent. IPCA Laboratories and Lupin recorded growth of 16.2 per cent and 16.1 per cent, respectively, while Cipla grew 15.2 per cent, Alkem 14.8 per cent and Abbott India 14.6 per cent.

For 2QFY27, Dr. Reddy’s led the tracked companies with growth of 21.0 per cent, around 630 basis points ahead of the IPM. Torrent recorded growth of 16.9 per cent, followed by Zydus at 16.3 per cent, Lupin at 15.8 per cent, Mankind Pharma at 15.7 per cent and Sun Pharma at 15.3 per cent. These six companies outperformed the market’s quarterly growth of 14.7 per cent.

IPCA Laboratories recorded quarterly growth of 14.4 per cent, followed by Alkem at 13.9 per cent, Cipla at 13.8 per cent and Abbott India at 12.3 per cent.

According to the report, the stronger performers benefited from their exposure to faster-growing therapy segments and established brands. Dr Reddy’s performance was supported by Oncology and Vaccines, while Cardiac, Anti-Diabetic, VMN, Gastroenterology and Oncology contributed to growth across other leading companies.

Mankind Pharma recorded a sharp improvement from the previous quarter, supported by momentum in VMN, Gastroenterology and Neurology. Cipla and Alkem continued to face pressure from seasonal weakness in Respiratory and Anti-Infectives, while Abbott India’s performance was affected by a decline in its Anti-Diabetic franchise.

Volume recovery supports a broad-based growth outlook

The September performance capped a steadily strengthening quarter, with IPM growth reaching 14.7 per cent in 2QFY27 following 13.9 per cent growth in 1QFY27. Quarterly unit growth stood at 3.0 per cent, while September’s 5.4 per cent unit growth marked the strongest monthly reading since October 2023.

The report attributes the improvement in volume growth to factors including better diagnosis, greater emphasis on preventive healthcare, tighter regulatory compliance and lifestyle-related growth in chronic diseases. The strengthening contribution of volumes, alongside price and new product introductions, has made the market’s growth more broad-based.

Equirus Securities expects volume expansion to continue steadily, albeit at a slightly lower intensity. The improvement across chronic and acute therapies indicates that market momentum extends beyond a limited number of segments, although Respiratory and seasonal pressures in Anti-Infectives remain areas to watch.

Table 1: Indian pharma market performance

Key indicator	Performance
September 2026 market growth (YoY)	17.1 per cent
September 2025 market growth (YoY)	6.6 per cent
August 2026 market growth (YoY)	13.1 per cent
2QFY27 market growth (YoY)	14.7 per cent
1QFY27 market growth (YoY)	13.9 per cent
2QFY27 market sales	₹746.1 billion
September 2026 unit growth	5.4 per cent
MAT September 2026 growth	13.2 per cent

Source: Equirus Securities, Healthcare & Pharmaceuticals Sector Report, 14 October 2026.

Table 2: September 2026 growth across key therapy segments

Therapy segment	Growth (YoY)
VMN	22.2 per cent
Anti-Diabetic	21.2 per cent
Cardiac	20.4 per cent
Pain	20.0 per cent
Dermatology	19.6 per cent
Neuro/CNS	17.9 per cent
Gastroenterology	17.6 per cent
Gynaecology	16.6 per cent
Anti-Infectives	9.3 per cent
Respiratory	3.1 per cent
Oncology*	29.4 per cent

*Oncology is outside the ten key therapy segments. Source: Equirus Securities.

Table 3: Pharmaceutical company growth comparison

Company	September 2026	2QFY27
Dr. Reddy’s	17.2 per cent	21.0 per cent
Torrent	18.9 per cent	16.9 per cent
Zydus	19.7 per cent	16.3 per cent
Lupin	16.1 per cent	15.8 per cent
Mankind Pharma	17.3 per cent	15.7 per cent
Sun Pharma	17.6 per cent	15.3 per cent
IPCA Laboratories	16.2 per cent	14.4 per cent
Alkem	14.8 per cent	13.9 per cent
Cipla	15.2 per cent	13.8 per cent
Abbott India	14.6 per cent	12.3 per cent
Indian Pharma Market (IPM)	17.1 per cent	14.7 per cent

Source: Equirus Securities, pages 1 and 7. Company growth figures are year-on-year.