The Indian pharmaceutical industry is set to experience significant growth, driven by strong domestic demand and a rebound in specific sectors, despite facing some hurdles.
According to a report by 360 ONE Capital, the sector is expected to see a 10% revenue increase year-on-year in the first quarter of Fiscal Year 2027. This growth is anchored by a 12.7% rise in domestic sales and a 9.9% increase in the Contract Development and Manufacturing Organization (CDMO) and Active Pharmaceutical Ingredient (API) markets. However, the US market is anticipated to decline by 9.3%, largely due to a base effect linked to Revlimid sales.
Challenges persist, such as Dr. Reddy's Laboratories' recent halt on generic semaglutide injections over quality concerns, which raises questions about the future of GLP-1 therapies. Nonetheless, the report suggests that companies engaged in Contract Research and Manufacturing Services (CRAMS) and API production are likely to find structural growth opportunities, with US-based firms expected to recover as market conditions improve.
This outlook underscores the resilience of the Indian pharma sector, illustrating its capacity to adapt and thrive amid external pressures. As the market stabilizes, stakeholders may want to monitor shifts in regulatory landscapes and quality assurance protocols that could impact growth trajectories.