Motilal Oswal Wealth Management projects India’s pharmaceutical sector to grow at 9–11% by fiscal 2026 and has spotlighted five pharma and healthcare stocks—Lupin, Mankind Pharma, Piramal Pharma, IPCA Labs, and Max Healthcare—as key beneficiaries of this upswing.
The Indian pharmaceutical industry—long dubbed the “pharmacy of the world”—is entering a growth phase driven by rising domestic demand, export opportunities, and governmental incentives such as the production-linked incentive (PLI) scheme. Pharma revenue growth of 9–11% is expected in fiscal 26, underpinned by price hikes, new product launches, and increased exports to regulated markets.
Motilal Oswal has identified five top stocks poised to capitalize on this growth: Lupin, Mankind Pharma, Piramal Pharma, IPCA Laboratories, and Max Healthcare.
According to Motilal Oswal analysts, Mankind Pharma “continues to deliver industry-beating growth in the prescription business” due to its niche chronic therapies and strong execution. Max Healthcare is highlighted for benefiting from its combination of brownfield, greenfield, and inorganic expansion, which is expected to accelerate breakeven and operational leverage.
The growth forecast is backed by government support; the PLI scheme aims to localise production of 18–20% of imported drugs, boosting India’s manufacturing base.
If these projections materialize, investors could see solid returns from the highlighted stocks, and the broader pharma sector could emerge as a cornerstone of domestic income and export-driven growth. Continued R&D investment and regulatory compliance will be critical in sustaining this momentum.
