Pharma – Oct-Dec’25 Earnings Preview – High US base to restrict YoY growth
Published on 08 Jan 2026
Pharmaceutical companies under our coverage are likely to deliver modest single-digit EBITDA growth in Q3FY26, largely impacted by a high base in the US market. In contrast, domestic formulations are expected to sustain healthy YoY growth. The US business may report a YoY decline, thogh the underlying portfolio excluding gRevlimid is projected to register growth, indicating stability in the core business. Favorable currency movements and benign raw material costs should continue to provide support gross margins. On the domestic front, operating conditions remain largely supportive. With GST-related disruptions now largely behind, the continued scale-up of chronic therapies is expected to be the key growth driver during the quarter.
SUNP, AJP and ERIS remain our preferred picks within the sector.
