India’s pharmaceutical sector is expected to report steady domestic growth in Q4 FY26, but overall earnings are likely to come under pressure due to continued weakness in the US market, according to a report by Nuvama Institutional Equities.

While the domestic business remains robust—driven by strong demand in key therapies such as cardiac, anti-diabetic, and oncology—margin pressures and declining US sales are expected to weigh on profitability. The report estimates revenue growth of around 10 Percent year-on-year, but EBITDA growth is likely to remain modest at 3 Percent, with profits declining by approximately 6 Percent.

India’s domestic pharmaceutical market continues to be a key growth driver, expanding about 12 Percent year-on-year, supported by strong performance across chronic therapies. Oncology, cardiac, and anti-diabetic segments have shown particularly strong traction, reflecting rising demand and improved access to treatment.

However, the US market remains a concern due to persistent pricing pressure, increased competition in generics, and lower contribution from key products. These factors are expected to offset gains from the domestic business, resulting in subdued overall earnings growth for Indian pharma companies in the near term.