From The Economic Times · PTI · · 1m 10s
Pharma Revenue Growth Forecast
India's pharma sector to grow 11-13% revenue in FY27 with strong exports and domestic demand.
In brief
India's pharma sector to grow 11-13% revenue in FY27 with strong exports and domestic demand. India's pharmaceutical sector revenue is projected to grow 11-13% in FY27 due to strong exports and domestic demand, though operating margins may drop by 150-200 basis points. Originally reported by The Economic Times.
Pharma Revenue Growth Forecast
India's pharmaceutical sector revenue is projected to grow 11-13 per cent this fiscal year compared to 8 per cent a year earlier.
Export Growth Driver
Export growth is projected at 14-16 per cent in rupee terms this fiscal year, with formulations accounting for 83 per cent of exports.
Domestic Market Expansion
The domestic market will expand 9-11 per cent this fiscal year, supported by chronic therapies and annual price revisions of 5-6 per cent.
Margin Pressure
Operating margins are expected to compress by 150-200 basis points to 21-21.5 per cent due to cost inflation in raw materials, energy, and freight.
Geopolitical Impact
Higher energy, freight, and feedstock costs amid geopolitical volatility in West Asia will outweigh near-term gains from operating leverage.
Sector Resilience
Strong cash generation, liquidity, and healthy balance sheets are expected to keep the sector's credit profiles resilient with debt-to-EBITDA around 1.2 times.
The takeaway
India's pharmaceutical sector revenue is projected to grow 11-13% in FY27 due to strong exports and domestic demand, though operating margins may drop by 150-200 basis points.
