CRISIL analysis: Exports, domestic demand to drive pharma sector's growth

Bulk drug exports are expected to see moderate increases, supported by volume growth from new launches, customised synthesis, and rising demand for complex drugs

Healthy exports and steady domestic demand will drive pharma growth. Steady raw material prices and higher volumes are expected to support margins, while credit profiles remain stable.

  After growing 10 per cent in the last financial year, the pharmaceutical sector is projected to expand 8-10 per cent in this financial year and 9-11 per cent in the next, led by sustained overseas demand, particularly for formulations, and steady domestic demand. The international market, accounting for 53 per cent of the industry’s revenue, surged 13 per cent in FY24 (in rupee terms) and is projected to grow 10-12 per cent