The Indian pharmaceutical and healthcare sector is expected to see moderate revenue growth, with EBITDA margins remaining flat, in the March quarter, according to a brokerage report by HDFC Securities. "We project sales/EBITDA growth of 11 per cent /6 per cent y-o-y for our coverage universe," the brokerage added.

The pharmaceutical companies are expected to see 10 per cent y-o-y sales growth, driven by a 15 per cent y-o-y increase in the India business. However, this growth will be offset by a 5 per cent q-o-q decline in the US formulations due to pricing pressures and the absence of gRevlimid sales.

"EBITDA margins for the pharma segment are expected to come down (-110bps y-o-y), with an increase in input cost, price erosion in the US, absence of gRevlimid, steady R&D, and higher SG&A," said the report. The hospital business is projected to grow by 15 per cent y-o-y during the reporting quarter, driven by steady occupancy and ARPOBs and bed capacity addition.

The diagnostics segment is expected to post 15 per cent y-o-y sales growth, driven by volume increases leading to moderate margin expansion. The retail pharmacy business is expected to see strong growth, with Medplus expected to see 22 per cent y-o-y growth and Apollo HealthCo expected to see steady 20 per cent y-o-y growth.

"The US generics market is likely to decline q-o-q due to the absence of gRevlimid sales and pricing pressures in the base business," said the report.

However, there is expected to be some traction in key products such as gJynarque, gSpiriva, and gMyrbetriq.The Indian pharma market is expected to have seen steady growth of 12 per cent in Jan/Feb'26, led by strong 16 per cent growth in the chronic segment and ~9 per cent growth in the acute segment.

"We expect our coverage universe to see 15 per cent y-o-y growth in India business on the back of traction in the speciality portfolio and chronic," the brokerage said in its report.

The research report by HDFC Securities noted that margins will remain under check due to an increase in input costs, pricing pressures in the US business, absence of high margin gRevlimid, steady research and development, and higher selling, general, and administrative expenses.

The Contract Research, Development, and Manufacturing Organisation business is expected to sustain its margins as new capacities mature, while the hospital business could see some pressure on lower international payor mix and new bed additions.

Published on April 12, 2026