Indian Pharma, Healthcare Sector Outlook
Analysis based on 7 articles · First reported Apr 12, 2026 · Last updated Apr 12, 2026
The market impact is moderate, as the report from Meritz Securities indicates mixed performance for the Indian pharmaceutical and healthcare sector. While the India business is expected to drive sales growth, pricing pressures in the United States and increased input costs will keep EBITDA margins flat, potentially leading to cautious investor sentiment for companies in this sector.
Meritz Securities released a brokerage report forecasting moderate revenue growth and flat EBITDA margins for the Indian pharmaceutical and healthcare sector in the March quarter. Pharmaceutical companies are expected to see 10% YoY sales growth, primarily driven by a 15% YoY increase in the India business. However, this growth will be offset by a 5% QoQ decline in the United States formulations market due to pricing pressures and the absence of gRevlimid sales. EBITDA margins for the pharma segment are projected to decrease by 110bps YoY due to rising input costs, US price erosion, and higher SG&A. The hospital business is anticipated to grow by 15% YoY, and the diagnostics segment by 15% YoY. Retail pharmacy businesses, including MedPlus and Apollo HealthCo, are expected to show strong growth of 22% and 20% YoY, respectively. Overall, margins will remain constrained by various cost pressures and the absence of high-margin products.
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