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Pharma API and CRAMS Firms Post Sharp Q1 Profit Growth
Pharma companies that make ingredients and provide manufacturing services earned much more profit in June 2026.
Their median profit growth rose to 47.1%, compared with 8% in March.
Operating-profit growth reached 35.6%.
New CDMO contracts helped some companies grow.
Morepen Laboratories began shipments under a large, multiyear contract.
Companies are also adding production capacity and using existing facilities more fully.
New medicines, including peptide and GLP-1 projects, are creating additional opportunities.
Hospitals and diagnostic companies continued to grow as well.
Median PAT growth in the API and CRAMS segment rose from 8% in March to 47.1% in June 2026.
Median operating-profit growth for API and CRAMS companies reached 35.6% in June 2026.
CDMO project commercialisation, capacity additions, new product launches and higher utilisation supported profitability.
Morepen Laboratories began commercial dispatches under an approximately ₹825-crore multi-year CDMO mandate in Q1 FY27.
Hospitals and diagnostics also grew, with median revenue growth of about 20% and 21%, respectively, in June 2026.
- Who
- Pharma API and CRAMS companies, including Morepen Laboratories, Aarti Pharmalabs, Innova Captab and Concord Biotech.
- What
- The companies recorded sharp acceleration in profit and operating-profit growth during Q1 FY27, according to the report.
- Where
- The report discusses companies and facilities including Innova Captab’s Jammu facility.
- When
- Q1 FY27; the report provides comparative data for March and June 2026.
- Why
- Growth was attributed to CDMO project commercialisation, capacity additions, new product launches, higher utilisation and fixed-cost absorption.
Key facts
- API and CRAMS median PAT growth
- 47.1% in June 2026, up from 8% in March
- API and CRAMS operating-profit growth
- 35.6% in June 2026
- Morepen CDMO mandate
- Approximately ₹825 crore over multiple years
- Morepen expected Q2 supplies
- Around ₹225 crore, subject to customer schedules
- Aarti Pharmalabs CDMO revenue
- ₹276 crore in FY26, compared with ₹32 crore in FY22
- Innova Captab Jammu facility
- Generated around ₹300 crore in FY26 at 5–10% utilisation; targeted utilisation could support around ₹1,400 crore or more in revenue
- Healthcare sector growth
- Median June 2026 revenue growth was about 20% for hospitals and 21% for diagnostics
Sources
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