India’s Pharma Sector: Strong Growth Expected in Q1FY26

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India’s pharmaceutical sector is poised for steady growth. Experts predict an 11% year-on-year increase in sales and EBITDA for the first quarter of FY26. Strong market demand across various regions drives this growth.

Key Growth Areas

Hospitals Segment

The hospitals segment will likely lead this growth. It should see a 17% rise in both revenue and EBITDA. This increase comes from:

• More patients visiting hospitals
• New beds being added
• Moderate increase in Average Revenue Per Occupied Bed (ARPOB)

Diagnostics Firms

Diagnostics firms are also set to do well. They expect a 14% jump in sales. This growth is supported by:

• Better mix of tests
• Organic volume expansion
• Recent mergers and acquisitions

Market Overview

India’s pharmaceutical market was valued at $50 billion in FY24. This includes:

• $26.5 billion from exports
• $23.5 billion from the domestic market

Globally, India ranks:

• 3rd in production volume
• 14th in value

India has a strong portfolio of:

• Generics
• Over-the-counter drugs
• Vaccines
• Biologics and biosimilars

Government Support and Employment

The National Accounts Statistics 2024 shows the gross output from pharmaceuticals was Rs 4.56 lakh crore in FY23. The sector added Rs 1.75 lakh crore in value. It also employed nearly 9.26 lakh people.

Investment in R&D and Education

The government is investing in pharma R&D and education. Seven National Institutes of Pharmaceutical Education & Research (NIPERs) have been set up. These institutions promote:

• High-end academic research
• Industry-oriented research
• Postgraduate and doctoral training

To boost innovation, the government has introduced the National Policy on Research & Development and Innovation in the Pharma-MedTech Sector. This policy aims to:

• Foster a robust R&D ecosystem
• Promote entrepreneurship
• Enable India to become a global leader in drug discovery and medical device innovation

Future Outlook

The outlook for India’s pharma industry remains bright. Policy support, institutional research, and global market reach are expected to sustain growth across all segments.