Mumbai: The aggregate financial performance of top 30 Indian pharmaceutical companies, with revenues of over Rs. 2,500 crore during 2024-25, remained under pressure during the first nine months of FY2025-26 and the growth in bottomline may not cross double digit during current year. Their revenues including other operating income increased only by 12 per cent and net profit growth after exceptional items remained almost flat with marginal growth of 2.8 per cent.
The operating profit before tax and adjustments, however, went up by 16 per cent. Higher investments in research & development, launch of innovative products, acquisitions and entry into new markets will help to establish presence in export markets. However, war situation in middle east and other region, competition, additional provision or labor cost and slower rate of US FDA approvals will have adverse impact.
The US-Israel war against Iran and continued Russia-Ukraine war as well as volatile exchange rates will have negative impact on bottomline during 2025-26. Exports targets may be under pressure with supply constraints. The ANDA approvals by US FDA during 2025 declined to 663 ANDAs against 722 ANDAs in the previous year. This will impact new product launches in lucrative export markets. The global challenging conditions have adversely impacted investors sentiment and BSE Healthcare index declined to 43,900 points as against its 52-weeks peak level of 46,018 points as on July 30 2025. The BSE Sensex also declined sharply and moving at 78,205 points on March 10, 2026 as against its yearly highest level of 86,159 points on December 1, 2025.
The aggregate revenues of Pharmabiz sample of listed 30 large Indian pharma companies, with sales above Rs. 2,500 during 2024-25, increased by 11.8 per cent to Rs. 2,98,484 crore during the first nine months ended December 2025 from Rs. 2,66,918 crore in the corresponding period of last year. Other income moved up by 4.6 per cent to Rs. 7,258 crore. Employees cost increased by 13.4 per cent to Rs. 56,944 crore from Rs. 50,212 crore and interest burden went up by 11 per cent to Rs. 4,726 crore from Rs. 4,256 crore. Depreciation provision moved up by 14.4 to Rs. 15,697 crore from Rs. 13,717 crore. Thus, these 30 companies manage cost effectively and registered higher operating profit of Rs. 63,514 crore as against Rs. 54,765 crore, a strong growth of 16 per cent.
The tax provision during the first nine months ended December 2025 increased by 12.4 per cent to Rs. 14,230 crore from Rs. 12,655 crore in the similar period of last year. Exceptional items put pressure on net earnings which increased only by 2.8 per cent to Rs. 43,234 crore from Rs. 42,049 crore. Several companies provided amounts towards the New Labour Codes which have implications on employee benefits including gratuity, leave encashment, and other related obligations. Exceptional items like forex gain/loss, provision for legal settlements, acquisition charges or discontinuation charges increased significantly during first nine months of 2025-26.
Sun Pharma provided Rs. 1,307 crore as exceptional items as against Rs. 316 crore in last period which includes Rs 288 crore on account of discontinuation of development worked of SCD-044. Zydus also provided Rs. 119 crore as exceptional items which included acquisition and liquidation costs. Further it provided Rs. 636 crore for net gain on foreign taxation of Rs. 636 crore during the first nine months ended December 2025. Cipla shown exceptional items of Rs. 276 crore primarily arising due to change in the definition of wages for employees and contract labours. Lupin’s exceptional items in regards to settlements, forex gain/loss and arbitration award amounted to Rs. 426 crore. Glenmark Pharma has shown Rs. 1,892 crore towards multiple antitrust and consumer protection lawsuits, including class actions. These exceptional items put overall pressure on bottomline significantly.
Sun Pharmaceutical Industries has maintained its top position among Indian pharma segment with revenues Rs. 43,850 crore during the first nine months ended December 2025 as against Rs. 39,620 crore in the corresponding period of last year, a growth of 10.7 per cent. For the full year ended March 2025, it registered revenues of Rs. 52,678 crore. The second largest Indian pharma company Dr Reddy’s Laboratories’ (DRL) revenues increased by 8.5 per cent to Rs. 26,154 crore from Rs. 24,116 crore. Similarly, Aurobindo Pharma, a third largest company in 2024-25, posted revenues of Rs. 24,800 crore as against Rs. 23,342 crore, a growth of 6.2 per cent only.
Lupin, Glenmark Pharmaceutical and Laurus Labs registered strong revenue growth of 20.2 per cent 31.3 per cent and 30.4 per cent respectively during the first nine months ended December 2025. Further, Zydus Lifesciences, Mankind Pharma, Emcure Pharma, Ajanta Pharma and Granules India registered revenue growth of over 15 per cent during nine months ended December 2025. However, sales growth of Cipla, Aurobindo Pharma, DRL, Stride Pharma, Natco Pharma, GlaxoSmithKline Pharma (GSK), Syngene International, Wockhardt, Eris Lifesciences, Dishman Carbogen, Abbott India, IPCA Labs, etc., registered marginal growth of single digit in revenues. The sales of Piramal Pharma declined by 4.4 per cent to Rs. 6,117 crore in first nine months of 2025-26.
Indian pharma players are focusing on export markets with investments on R&D and new product launches. Meanwhile, US has put higher tariffs on Indian pharma products in October 2025 and recently reduced tariffs to 18 per cent under new trade deal entered recently. Sun Pharma increased US sales to Rs. 12,625 crore during first nine months ended December 2025 as against Rs. 12,220 crore in the same period of last year. DRL’s US sales, however, declined 12.2 per cent to Rs. 9,618 crore from Rs. 10,958 crore mainly due to drop in gRevlimid sales. Lupin reported US sales at Rs. 7,997 crore. Similarly, the US sales of Zydus Lifesciences went up to Rs. 8,730 crore as against Rs. 7,919 crore. Glenmark Pharma’s US sales went up sharply to Rs. 6,214 crore from Rs. 2,302 crore. Jubilant Pharma generated 81 per cent of its sales from US markets.
The domestic sales of pharma majors moved up during the first nine months of 2025-26 with investments in R&D and overcome competition successfully. Sun Pharma’s Indian sales went up by 13.7 per cent to Rs. 14,454 crore from Rs. 12,710 crore in the last period and that of DRL’s Indian sales increased to Rs. 4,652 crore from Rs. 4,069 crore. Mankind Pharma reported domestic sales of Rs. 8,665 crore as against Rs. 8,131 crore in the similar period of last year. Lupin’s Indian sales touched to Rs. 7,577 crore. Torrent Pharma’s domestic sales increased by 12 per cent to Rs. 5,430 crore from Rs. 4,848 crore. Zydus Life, IPCA Labs, Gland Pharma, Ajanta Pharma, etc. also reported higher domestic sales.
Sun Pharma launched Unloxcyt in the US and the introduction of Ilumya in India during nine months ended December 2025 and the company continues to invest in building the pipeline for various markets. It will launch generic semaglutide injection under the brand name, Noveltreat, after the expiry of semaglutide patent in India. During the Oct-Dec 2025 quarter, it completed the acquisition of Valstar SA and its subsidiary Kemipharm SA or Rs. 256 crore. Aurobindo Pharma’s subsidiary signed a business transfer agreement for purchase of non-oncology prescription formulation business from Khandelwal Labs Pvt Ltd for a total consideration of Rs. 325 crore. Cipla acquired Inzpera Heathscience Ltd for a consideration of Rs. 110 crore during December 2025. During the quarter ended, 31st December, 2025, Cipla has paid Rs. 1,107 crore for acquiring perpetual rights to manufacture and market Galvus and Galvus from Novartis Pharma AG. These tie-ups and collaboration will help to stepped up presence in export markets.
The operating profit before tax and exceptional items of Pharmabiz sample of 30 pharma companies went up by 16 per cent to Rs. 63,514 crore during nine months ended December 2025 mainly due to significant rise of profits of Lupin, Glenmark Pharma and Laurus Labs. Similarly, Eris Lifesciences, Dishman Carbogen and Wockhardt improved profit level. However, profits of Biocon, Cipla, Mankind Pharma, Natco Pharma, Syngene International, Piramal Pharma, etc., impacted overall operating profit growth.
The net profit after tax and exceptional items improved only 2.8 per cent to Rs. 43,234 crore as major companies like Cipla, Mankind Pharma, Biocon, Jubilant Pharma, Syngene International, Piramal Pharma suffered heavy setback during first nine months ended December 2025. Further, net profit of Sun Pharma, DRL and Aurobindo failed to improve. Sun Pharma’s net profit declined marginally to Rs. 8799 crore and that of DRL moved down by 4.9 per cent to Rs. 3,936 crore. Aurobindo Pharma’s net profit remained stagnant at Rs. 2,582 crore during first nine months of 2025-26.
Sun Pharma declared interim dividend of Rs. 11 per share of face value of Re 1 each. Lupin and Alkem Labs also declared interim dividend of Rs. 43 per share of Rs. 2 each Torrent Pharma paid interim dividend of Rs. 29 per cent or 580 per cent per share. Natco Pharma declared interim dividend of Rs. 1.50 per share of face value of Rs. 2 each.
