India's pharma market gets a lift from rising volumes, not just prices

Chronic therapies and GLP-1 adoption help broaden growth drivers as the market expands over 10 per cent in April and May

India's pharmaceutical market is showing signs of a more balanced growth profile, with volume growth emerging as a more meaningful contributor alongside price increases and new product launches, according to a recent analysis by Equirus Securities.

 

The brokerage, citing IQVIA data, said volume growth contributed 3.2 percentage points to the Indian Pharmaceutical Market's (IPM's) 10.7 per cent moving annual total (MAT) growth in May 2026, compared with just 0.8 percentage points a year earlier. Price growth contributed about 4.5 percentage points, while new product introductions added around 3 percentage points.

 

The improvement in volumes comes even as price growth remains steady, suggesting that market expansion is being supported by a broader set of growth drivers than in the recent past. Equirus noted that volume growth has strengthened steadily over the past five quarters, while contributions from new product introductions have also increased.

   

The Indian Pharmaceutical Market recorded year-on-year growth of 10.3 per cent in April and 10.9 per cent in May, with monthly sales exceeding ₹21,700 crore in both months, according to data from market research firm Pharmarack. On a moving annual total basis, the market expanded to ₹2.51 trillion in May.

 

"All three growth drivers — volume, price and new products — have remained positive for the last six months," said Sheetal Sapale, Vice-President (Commercial), Pharmarack. "This sustained momentum reflects a healthy and broad-based uptick across the Indian pharma market."

 

The strengthening volume trend has coincided with robust growth in chronic therapies. Anti-diabetic therapies grew 16.2 per cent in April and 16.8 per cent in May, while cardiac therapies expanded 14.3 per cent and 13.9 per cent, respectively. Respiratory, neuro/CNS, anti-neoplastics and urology therapies also posted double-digit or near double-digit growth.

 

Equirus highlighted that several large companies, including Lupin, Sun Pharma, Ipca Laboratories and Torrent Pharmaceuticals, reported volume growth above the industry average, indicating stronger prescription traction in key therapies.

 

A major contributor to recent market expansion has been the rapid growth of GLP-1 therapies following the entry of generic semaglutide products after patent expiry in India.

 

According to Pharmarack, the GLP-1 agonist market expanded to ₹1,906 crore on a moving annual total basis in May from ₹565 crore a year earlier, driven by semaglutide and tirzepatide. The market has become one of the fastest-growing segments within the anti-diabetic therapy space.

 

"The semaglutide space is seeing a significant shift, with generics helping expand the market itself rather than just driving competition," Sapale said.

 

Pharmarack's analysis suggests that generic semaglutide products have improved affordability and widened access, contributing to higher adoption of GLP-1 therapies. While semaglutide continued to expand patient access following generic launches, tirzepatide emerged as another key growth driver within the diabetes and obesity segments.

 

The market's growth has also remained geographically broad-based. South India emerged as the fastest-growing region in May, while both southern and western regions recorded strong double-digit growth in April. Innovation continues to support expansion, with more than 5,500 new stock-keeping units contributing around ₹5,187 crore on a moving annual total basis in April.

 

For Equirus, the significance lies not in the pace of growth alone but in the composition of that growth. With volume, price and new product introductions all contributing positively, the brokerage said the Indian pharma market is exhibiting a healthier and more balanced growth profile than in previous years.