India pharma, healthcare revenue to grow steadily in Q1FY26E; EBITDA margins under pressure: Report

New Delhi [India], July 12 (ANI): Indian pharma and healthcare sector will witness steady revenue growth in the first quarter of the Financial Year 2026 (Q1FY26E), but concerns loom as EBITDA margins are expected to decline amid rising input costs and pricing pressures, according to a report by HDFC Securities.
The report added that the pharma sector firms studied by it may witness a 11 per cent year-on-year (YoY) sales growth, driven by an 11 per cent YoY increase in the India business along with 2 per cent QoQ growth in US sales (+2 per cent YoY).
The EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, is a financial metric used to assess a company profitability and operational efficiency.
The report stated that EBITDA margins for the pharma segment are expected to decrease by 42bps YoY, driven by price erosion in the US and an expected increase in research and development (R&D).
The hospital business is projected to grow by 15 per cent YoY, as muted occupancy will be partly supported by steady ARPOB, or Average Revenue Per Occupied Bed, which is a key performance indicator used in the healthcare industry to assess a hospital financial performance.
India pharmaceutical market for FY 2023-24 is valued at USD 50 billion, with domestic consumption valued at USD 23.5 billion and exports valued at USD 26.5 billion.
The domestic pharma industry is considered to be the world third-largest by volume and 14th in terms of value of production. With an extremely diversified product base covering generic drugs, bulk drugs, over-the-counter drugs, vaccines, biosimilars, and biologics, the Indian pharmaceutical industry has a strong presence at the global level.
According to National Accounts Statistics 2024, published by the Ministry of Statistics and Programme Implementation, total output for industry, i.e., Pharmaceuticals, medicinal and botanical products, is Rs. 4,56,246 crores for FY 2022-23 at constant prices, of which value added is Rs 1,75,583 crores. (ANI)

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