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Pharma companies are likely to report tepid performance in Q4FY26E, with revenues growing ~7% YoY

ICICIdirect Research 17 Apr 2026 DISCLAIMER

Pharma

Pharma companies are likely to report tepid performance in Q4FY26E, with revenues growing ~7% YoY; as strong domestic growth and currency benefits (for exports) are likely to get neutralised by loss of high margin exclusivities in the US. EBITDA/PAT may decline by 2%/13% YoY.

We expect domestic business including MNCs bucket to grow at ~11% YoY in Q4FY26E, mainly driven by better volumes, price hikes and new launches, including the GLP-1 products.

We expect exports (especially US) to report muted growth for the quarter on account of higher base of cancer drug gRevlimid in the previous year.

Healthcare

Hospitals under our coverage are likely to report revenue growth of 16% YoY, aided by higher IPD footfalls, surgical mix and new bed additions.

Bottomline growth in EBITDA/PAT for our coverage companies may slow to 16%/10% YoY as hospital margin of most companies is likely to see a squeeze of 70–560bps due to higher overheads of newly added hospitals.

Stocks Preferred – Dr Reddy, HCG, KIMS

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