Indian pharmaceutical companies face margin squeeze despite solid revenue growth. HDFC Securities projects 11 percent sales growth and 6 percent EBITDA growth for the March quarter, but profitability remains under pressure. While the India business surges 15 percent year-on-year, US formulations decline 5 percent quarterly due to pricing pressures and absence of key generic Revlimid sales. EBITDA margins in pharma are expected to contract 110 basis points annually from rising input costs, US price erosion, and elevated R&D spending. Hospital and diagnostics segments show stronger momentum with 15 percent growth each, while retail pharmacy chains like Medplus and Apollo HealthCo demonstrate resilience with 20 to 22 percent growth. The Indian market itself maintains steady 12 percent expansion through January and February, driven by chronic disease treatments.
