Archive · 23 Jul 2025
Indian Pharma: Steady Earnings Forecast Amid US Market Volatility
Indian drug companies are predicted to make more money this quarter.
This is because more people in India are buying medicine.
However, in the US, where they also sell drugs, sales might not grow as much.
This is because some drug prices are dropping.
One important drug called Revlimid will lose its special sales rights in January 2026.
This means other companies can sell the same drug, and the sales could change a lot.
Some companies like Sun Pharma are doing better than others, depending on what drugs they sell.
Indian pharmaceutical companies are projected to have steady earnings growth in Q1FY26 due to strong domestic demand.
Aggregate revenue for the sector is forecast to rise about 9% year-on-year in Q1FY26.
US sales are expected to be flat or marginally grow, affected by pricing pressure on key generics, especially Revlimid.
Loss of exclusivity (LoE) for gRevlimid is expected in January 2026, impacting US sales.
Companies like Sun Pharma, Dr. Reddy’s, Lupin, and Cipla are expected to see varying performances in the US market.
- Who
- Indian pharmaceutical companies.
- What
- Indian pharma companies are expected to have steady earnings growth in Q1FY26.
- When
- Q1FY26, June quarter, and January 2026.
- Where
- India and the US.
- Why
- Strong domestic demand and pricing pressures in the US market.
Domestic Market Growth
US Market Challenges
Domestic Market Growth
Domestic Market Growth
Strong growth driven by cardiac, respiratory, CNS, and anti-diabetic therapies.
US Market Challenges
Sales are primarily driven by cardiac, respiratory, CNS and anti-diabetics.
- Revenue Growth (Q1FY26)
- 9% YoY (forecast)
- Ebitda Growth (Q1FY26)
- 8% (forecast)
- Net Profit Growth (Q1FY26)
- 2-6% (forecast)
- US Market Share of Revenue
- 30-40% for many companies
- Revlimid LoE
- January 2026
- Indian Branded Formulations Growth
- 9-10% YoY (expected)
- Nifty Pharma Decline (2025)
- 4.38%