Unlike the robust domestic outlook, the US outlook is more cautious about the Indian pharmaceutical sector and after a strong FY25, where income increased by 9.9% in the previous year, growth is expected to slow down due to price erosion and declining sales of lenalidomide. Lenalidomide is used to treat anemia (low red blood cells) in patients with a certain type of myelodysplastic syndrome syndrome (MDS).
He added that regulatory control of the US food and drug administration (USFDA) remains a permanent risk factor, with warning letters and imports to delay the launch of the product and cause sanctions for failure. These problems also store significant correction costs, including consultant fees and increased driving bandwidth, which tend to weigh margins.
The recent storage of 50% of the US tariffs is on Indian imports across various sectors, effective 27. August 2025. “While medicines have been exempted, the possibility of future impact could be expressed.
In the commentary on the performance of the domestic market, he stated that the domestic market continues to be a key driving force of the growth of Indian pharmaceutical companies. It is expected that the expansion of sales forces, improved productivity of medical representatives, deeper rural distribution and launch of new products supports the growth in FY2026 on the domestic market 8-10%. ICRA samples continue to show two-digit expansion (10.3% growth in Q1 FY2026 to 11.6% growth in FY2025), due to an increase in market market increases in chronic therapies, and a regular increase in the price-folded generic volume, partly due to growing general.
Recent government measures, including GST exceptions and reduce rates for selected rescue/ general drugs and some medical needs and equipment, will increase availability and availability and will be in line with the wider Indian objectives for the inclusion of health care, the group noted.
The group also noted that the Indian pharmaceutical sector is prepared for the slight growth of the current fiscal, although global headwinds and regulatory uncertainties throw the shadow to their largest export market.
The Group reported that it is assumed that income for its sample of companies will be expanded by 7-9% in FY2026, supported by 8-10% growth in the domestic market and 10-12% growth in Europe.
However, it is expected that performance on the US market will be mild, with year-on-year growth slows to 3-5%, of almost 10% in FY2025. Operating profit margins (OPM) are expected to remain at FY2026 at 24-25%, which is widely in line with 24.6% in FY2025, supported by favorable raw material prices, improved operating leverage and growing share of special products.
Published – 18 September 2025 23:22 is
