Pharma Poised For 10 pc Revenue Growth In FY27
The Indian pharmaceuticals market is set to grow 9 per cent in FY27, led by drug price hikes and product launches, although volume growth may be subdued
Chennai: The pharmaceutical sector is projected to grow its revenues by 10 per cent in FY27, driven by healthy domestic sales and increased traction in the contract development and manufacturing organisation (CDMO) business.
"Indian pharma is poised for robust revenue growth in FY27, fuelled by a thriving domestic market and burgeoning opportunities in the CDMO sector. Benefiting from zero import duty on exports to the US, India maintains its competitive edge, despite the challenging US market. The CDMO sector is unfolding as a long-term growth powerhouse for the industry. Synergy benefits and the seamless integration of acquired assets being key focal points for FY27," says Vivek Jain, Director, Corporate Ratings, Ind-Ra.
The Indian pharmaceuticals market is set to grow 9 per cent in FY27, led by drug price hikes and product launches, although volume growth may be subdued. Additionally, significant contributions are expected from GLP-1 product launches in India. GLP-1 products are used for diabetes management.
India will continue to benefit from zero import duty on pharma exports to the US under the interim trade deal, leveraging the US's reliance on Indian generics due to limited domestic capacity. The CDMO sector offers a long-term strategic opportunity for Indian pharma, with companies investing heavily in capex to capitalise on order inflows and onshoring initiatives. Indian CDMO players are well-positioned due to strong compliance standards, scalable manufacturing capabilities, and cost-effective operations, making them a preferred China+1 destination.
The US generic market remains the second‑largest revenue contributor for many pharma companies, delivering average growth of 10.7 per cent between FY23 and FY25, against muted 1 per cent average growth in FY18-FY22, driven by product‑specific opportunities, including specialty launches and key generics such as Revlimid and Mirabegron; drug shortages in the US market; and a moderation in pricing pressure.
