Pharmaceutical Growth Amidst Global Challenges: An ICRA Forecast

Leading domestic pharmaceutical firms are projected to see a revenue increase of 7-9% in FY2026, driven by domestic and European market growth, despite challenges in the US market. Operating profit margins are expected to remain stable, supported by favorable material prices and a focus on specialty products.

The revenue for major domestic pharmaceutical companies is forecasted to rise by 7-9 percent this fiscal year, despite facing global challenges and regulatory uncertainties in the US, according to ratings firm ICRA.

ICRA projects that in FY2026, these companies will see growth of 7-9 percent, supported by an 8-10 percent rise in domestic market revenue, along with a 10-12 percent increase in Europe.

However, the US market growth is anticipated to slow down to 3-5 percent year-on-year, compared to nearly 10 percent in FY2025. Operating profit margins are expected to maintain a resilient 24-25 percent, thanks to favorable raw material prices, better operating leverage, and a growing share of specialty products.