India pharma market posts strongest growth in three years

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India’s pharmaceutical market recorded year‑on‑year growth of 17.1 per cent in September 2026, its strongest monthly performance in three years, with market sales of about Rs. 253 billion and unit growth of 5.4 per cent, a report said on Thursday. 

The report from Equirus Securities mentioned that 17.1 per cent growth in September 2026 is a marked acceleration from 13.1 per cent in August 2026 and significantly ahead of the 6.6 per cent recorded in September 2025.

The momentum carried into the quarter, with Indian Pharmaceutical Market (IPM) sales of Rs 746.1 billion in the second quarter of FY2027, up 14.7 per cent year‑on‑year, compared with 7.7 per cent in Q2FY26 and 13.9 per cent in Q1FY27.

On a moving annual total (MAT) basis, market growth improved to 13.2 per cent in September, from 12.3 per cent in August 2026 and 7.9 per cent in September 2025.

The composition of market growth also continued to improve, with volume emerging as the largest contributor. The improvement reflects a broader recovery in demand, with market growth becoming less dependent on price increases alone.

The report attributed the improvement in volume growth to factors including better diagnosis, greater emphasis on preventive healthcare, tighter regulatory compliance and lifestyle-related growth in chronic diseases.

Chronic therapies grew 16.8 per cent on a MAT basis, compared with 10.9 per cent for acute therapies. While chronic therapies remained the principal structural growth driver, the improvement in acute therapies indicated that market momentum was broadening across segments.

Eight of the ten key therapy segments recorded growth above the mid-teens in September. vitamins, minerals and nutritionals (VMN) led with 22.2 per cent growth, followed by anti-diabetic at 21.2 per cent and cardiac at 20.4 per cent.

Outside the ten key therapy segments, oncology grew 29.4 per cent in September and 27.5 per cent during the quarter. Vaccines and urology recorded quarterly growth of 20.0 per cent and 19.3 per cent, respectively.

The improvement across chronic and acute therapies indicates that market momentum extends beyond a limited number of segments, although Respiratory and seasonal pressures in Anti-Infectives remain areas to watch.

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