According to an Axis Securities report, major Indian pharmaceutical companies reported a 10% year-on-year (YoY) growth in Q2 FY25, primarily driven by strong performances in North America and the domestic market. The Indian Pharmaceutical Market (IPM) experienced an 8% year-on-year growth, driven by a 9% increase in chronic therapies. In comparison, acute therapies saw a more modest growth of 4%, influenced by weaker seasonal performance. The report highlighted a 10.2% YoY and 1.7% quarter-on-quarter (QoQ) growth for the pharmaceutical sector under coverage, with North America and India business both seeing significant gains of 10.8% and 9.8% YoY, respectively.
Looking ahead, the pharmaceutical sector’s outlook remains positive, fueled by a promising pipeline in biosimilars, GLP-1, and peptides—critical treatments for diabetes and other conditions. Companies with a strong focus on chronic therapies continue to outperform the broader market.
The healthcare sector also reported strong performance, with top-line revenue increasing by 17.6% YoY and 10.4% QoQ in Q2 FY25. Insurance payers accounted for 33% of total hospital revenues, marking a 23% YoY and 12% QoQ growth. Despite low insurance penetration, this offers significant expansion potential. High-growth therapies like cancer and cardiac care drove double-digit growth, supported by rising occupancy rates and Average Revenue Per Occupied Bed (ARPOB), positioning the healthcare sector for continued future growth.
