The prospects for Indian CDMO companies are improving due to a rise in proposals from innovative pharmaceutical companies to non-Chinese companies.
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Motilal Oswal Report
Pharma companies under our coverage are expected to report healthy YoY earnings growth of 19.4% in Q3 FY25. We expect aggregate sales to grow 10% YoY to Rs 787 billion, aided by strong traction in domestic formulation sales and partially supported by the U.S. segment. Ebitda is expected to exhibit growth of 16.8% YoY to Rs 188 billion, led by a higher share of niche launches in the U.S. generics and a decline in raw material prices. PAT is expected to grow 19.4% YoY to Rs 117 billion.
For hospitals, we expect profitability to improve due to the addition of beds, higher volumes, and optimisation of the case mix/payor mix.
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