Revenue of leading Indian pharma firms is expected to grow 7-9% in FY26, Icra said.
Growth will be driven by 8-10% expansion in the domestic market and 10-12% in Europe.
US market performance to moderate, with growth slowing to 3-5% from nearly 10% in FY25.
Operating profit margins expected to stay resilient at 24-25%, supported by lower raw material costs, better leverage, and higher share of speciality products.
Revenue of leading domestic pharmaceutical companies is set to expand by 7-9% in the current fiscal even as global headwinds and regulatory uncertainties cast a shadow over its largest export market, the US, as per rating firm Icra.
Revenue for the sample set of companies is projected to expand by 7-9% in FY2026, supported by 8-10% growth in the domestic market and 10-12% growth in Europe, it stated.
However, performance in the US market is expected to moderate, with year-on-year growth slowing to 3-5%, from nearly 10% in FY2025, Icra said.
The operating profit margins (OPM) of ICRA's sample entities are expected to remain resilient at 24-25 per cent in FY2026, broadly in line with 24.6% in FY2025, aided by favourable raw material prices, improved operating leverage, and a rising share of speciality products, it added.
Research and Development (R&D) spending is projected to remain steady at 6-7% of revenues, with companies increasingly focusing on complex molecules and speciality products over generics, Icra said.
Icra said it estimates total capital expenditure for its sample set to reach ₹42,000-45,000 crore in FY26, including ₹25,000 crore in inorganic investments.
