The brokerage expects the domestic business of our coverage universe to grow at 7.5% YoY in Q2 FY26E. Inventory de-stocking, on account of GST rate on certain medicines from 12% to 5%, may have a temporary impact on the India business.
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
We anticipate growth slowing down for pharma companies in Q2 FY26E. Our coverage companies will likely report modest growth of 7.0%/5.1%/5.1% YoY in revenue/Ebitda/PAT.
We expect US business revenue to decline 0.7% YoY, as companies have started facing pricing pressure in gRevlimid. Aggregate India sales of our coverage are expected to grow at a slower pace of 7.5% YoY, at Rs 240 billion, due to a transitory impact of de-stocking on account of the revision in GST rates.
We remain cautious on the near-term outlook for the sector, considering uncertainties surrounding tariffs in US, loss of exclusivity for key products, and National List of Essential Medicine price revision in India in 2026.
Sun Pharma, Cipla, Aurobindo Pharma, Piramal Pharma, Alkem Laboratories, Cohance Lifesciences and OneSource are our top picks in the sector.
Key risks
Tariffs on US shipments, loss of exclusivity in key products, adverse outcome of regulatory inspections and inclusion of more products under NLEM in India.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
