Pharma Companies to See 11 Percent Growth in Sales and EBITDA in Q1FY26

Pharmaceutical companies are projected to achieve a robust 11% growth in sales and EBITDA for the first quarter of FY26, driven by sustained demand across most markets, according to a report by Kotak Institutional Equities. However, muted domestic demand in April and March may temper overall growth.

The hospital segment is expected to lead with a 17% year-on-year increase in sales and EBITDA, fueled by higher patient footfalls, new bed additions, and a slight rise in average revenue per occupied bed (ARPOB). Meanwhile, the diagnostics sector is forecasted to achieve 14% growth due to stronger volumes, better product mix, and merger and acquisition activity.

India’s pharmaceutical market for FY24 was valued at USD 50 billion, with domestic consumption contributing USD 23.5 billion and exports accounting for USD 26.5 billion. Globally, India ranks as the third largest by volume and 14th by value, with a diversified portfolio spanning generic drugs, bulk drugs, biosimilars, and vaccines.

Government efforts to foster innovation include the establishment of seven NIPER institutions and the implementation of the National Policy on Research & Development and Innovation in Pharma-MedTech Sector. These initiatives aim to position India as a leader in drug discovery and medical device innovation, while building a robust entrepreneurial ecosystem.