Pharma – Jul-Sep’26 Earnings Preview – Domestic growth and currency tailwind to aid growth
Published on 07 Oct 2026
Pharma companies under our coverage are expected to report moderate EBITDA growth of 3% YoY (2% QoQ) in Q2FY27, mainly due to the high base in the US business. Strong domestic growth and INR depreciation should partly offset the US weakness. Domestic formulations should remain healthy, supported by continued growth in chronic therapies and a recovery in acute demand. Generic semaglutide should support domestic growth, with its ramp-up and competitive intensity being key monitorables. In the US, lower gRevlimid sales and continued price erosion in select products are likely to weigh on growth. However, companies with exposure to complex generics, specialty products and limited-competition launches should continue to perform better. Overall, we remain constructive on the sector, with SUNP, TRP, AJP and ANTHEM as our top picks.
