These Stocks to Be in Focus Amid Growing Pharma Industry in India

As per a report released by India Ratings and Research (Ind-Ra), the Indian pharmaceutical market is projected to grow at an 8-9% annual rate in FY26. The report stated that the sector’s growth for FY25 is expected to be in the range of 7.5-8.0 % year-on-year. This follows a growth rate of 6.5 % year-on-year in FY24 and a 9.9 % YoY increase in FY23.

Revenue Growth in Pharmaceutical Industry 

In February 2025, the pharmaceutical market saw a 7.5 % YoY revenue growth. This increase was primarily driven by price growth (5.2 % YoY) and new product launches (2.4 % YoY), while volume growth remained sluggish, showing a slight decline of 0.2 % YoY, according to the report.

The sector has experienced an average year-to-date (YTD) growth of 7.3 % in FY25, driven by price growth (5.5 %), new product launches (2.7 %), and volume growth.

Additionally, the moving annual total (MAT), which tracks the 12-month rolling sales of all pharmaceutical products, saw an 8.1 % increase in February. Cardiac therapies led the market with a 10.8 % growth in MAT, along with a 13.7 % rise in their monthly market share. Other sectors such as gastroenterology, neurology/Central Nervous System, and dermatology also showed strong growth.

Conversely, therapies related to anti-infectives, respiratory, and gynaecology showed weaker growth in February 2025, the report mentioned. With a focus on expanding its capabilities in APIs and biotechnology, the sector has grown at twice the global average rate of 8 % CAGR. India has also become the world’s largest supplier of generic medicines, with its pharma exports growing at 9 %, nearly double the global average.

Top Pharmaceutical Stocks Based on 5Y CAGR

Conclusion

The Indian pharmaceutical market is poised for steady growth, with projections of 8-9% annual growth in FY26, driven by a combination of price increases, new product launches, and steady demand across key therapeutic areas. Despite some challenges in volume growth, the sector’s overall performance remains strong, supported by its leadership in the global generic medicines market and robust export growth.

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