Nifty Pharma index soars 7% thus far in February; nears 52-week high

Thus far in the month of February 2026, Laurus Labs surged 13%, while Sun Pharmaceutical Industries and Torrent Pharmaceuticals soared 11% each.

Nifty Pharma index movement today

 

Shares of pharmaceutical companies were in focus with the Nifty Pharma index up nearly 1 per cent at 23,436.95 on the National Stock Exchange (NSE) in Thursday’s intra-day trade in an otherwise subdued market. The pharma index is seen inching towards the 52-week high level of 23,492.55 touched on January 7, 2026.

 

At 01:50 PM; the Nifty Pharma index was up 0.60 per cent, as compared to 0.3 per cent decline in the Nifty 50.

 

Among individual stocks, Mankind Pharma rallied 6 per cent to ₹2,276 on the NSE in intra-day trade. Zydus Lifesciences, Glenmark Pharmaceuticals, Alkem Laboratories, Laurus Labs, Aurobindo Pharma, Lupin and Dr Reddys Laboratories also  outperformed the market by gaining in the range of 1 per cent to 2 per cent.

 

Meanwhile, thus far in the month of February 2026, the Nifty Pharma index has rallied 7 per cent, as compared to 0.56 per cent gain in Nifty 50. Laurus Labs have surged 13 per cent, while Sun Pharmaceutical Industries and Torrent Pharmaceuticals have soared 11 per cent each. Dr Reddy’s Laboratories and Lupin were up 8 per cent each.

 

What’s driving pharma stocks?

 

In the December 2025 quarter (Q3FY26), the pharmaceutical sector reported 12.3 per cent year-on-year (YoY) growth, led by India (+12 per cent YoY), while the US revenues were slightly muted due to lower gRevlimid sales. Chronic therapies drove India’s IPM (+12 per cent YoY), with GLP-1 therapies like Tirzepatide and Semaglutide maintaining strong momentum. Lupin and Dr Reddy’s delivered healthy performance, offsetting the US generics pressures.

 

For pharma, companies with robust domestic chronic portfolios, biosimilars, and peptide pipelines are poised to outperform the broader IPM. Lupin and Aurobindo Pharma are particularly well-positioned with strong US product performance, successful launches, and market-leading India operations, according to analysts at Axis Securities.

 

Looking ahead, a strong pipeline in biosimilars, non-US semaglutide, and peptides is expected to drive growth over the next three years. Companies with higher chronic exposure continue to outperform IPM, the brokerage firm said in the sector outlook.

 

Meanwhile, Q3FY26 marks the last quarter for exclusivity of gRevlimid, though supplies had already started dipping as companies had exhausted their limits and the product lost patent in January 2026. Pharma companies with exposure to this drug have cautioned on near-term slowdown in growth and margins, analysts at ICICI Securities said in the pharma sector update.

 

Brokerages view on pharma stocks

  Sun Pharmaceuticals is transitioning its US business from low-margin generics to high-value specialty and innovative therapies. This coupled with emerging markets growth prospects and continued dominance in domestic formulations market, Sun Pharmaceuticals is well-positioned for sustained profitability, over the period FY27E and FY28E, analysts at Mirae Asset Sharekhan said.

 

Rising share of innovative drugs would help cushion the price erosion of generics. The change in portfolio mix has raised valuations over the last three years. Additionally, the company also has low leverage and a healthy cash flows. The brokerage firm values the stock at 34x on FY28E EPS of ₹57.9x and retained its Buy rating with a target price of ₹1,968.

 

As regards to Divi’s Labs, the stock valuations have risen on account of expectations of improvement in the Contract Development and Manufacturing Organization (CDMO) business. While there has been improvement in margins on account of better product mix, analysts at Mirae Asset Sharekhan trim growth estimates marginally to factor in the custom synthesis (CS) business’ traction. The brokerage firm recommend ‘Buy’ rating on the stock with a price target of ₹7,206.

 

Meanwhile, Lupin’s management raised its FY26E EBITDA margin guidance for 2nd consecutive quarter by 200bps to 27-28 per cent. While analysts at BNP Paribas India expect Lupin to benefit from the delayed competition in Tolvaptan and the settlement of Mirabegron litigation, the brokerage firm expects US sales to taper in medium-term which should drag margins down. It maintains 'Neutral' rating with a target price of ₹2,490.  ==================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.