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Informist, Friday, Jan. 23, 2026

MUMBAI – Shares of pharmaceutical companies are expected to take cues from their December quarter earnings next week, analysts said. Nifty 50 constituents Dr. Reddy's Laboratories and Cipla have already declared their earnings, while Sun Pharmaceutical Industries is scheduled to announce them on Thursday.

So far, companies have reported pain in their US earnings as well as overall margins due to fall in sales of cancer drug generic Revlimid. Though companies have provided a broad direction on future earnings prospects to fill the gap left by declining Revlimid sales, it is still unclear how effectively these products are going to aid an earnings recovery in the US.

Analysts expect sales growth for major pharmaceutical players to be similar to the broader Indian pharmaceutical market trend, and expect a few companies that have a smaller generic Revlimid portfolio to outperform peers slightly. Fall in sales of Revlimid in the US is expected to continue putting pressure on margins on a year-on-year basis for major pharma companies in the upcoming quarters, analysts said. While earnings of some companies may surpass estimates, reasons for the higher-than-expected growth will likely be on temporary tailwinds rather than fundamental strength, analysts said.

Companies with heavy acute therapy portfolio may see a dip in their earnings, said Vishal Manchanda, senior vice president at Systematix Group covering pharmaceutical markets. The analyst expects companies like Ajanta Pharma to surpass the sales growth trend of the broader Indian pharmaceutical market due to a chronic-therapy dominated portfolio. Companies are looking to rejuvenate their US-based earnings by adding biosimilars to their portfolio, but it may take until 2027-28 (Apr-Mar) to see any tangible traction in earnings due to additions of these products.

Cipla announced its earnings for the December quarter during market hours on Friday. The company's net profit slumped 57% on year to INR 6.76 billion, primarily due to weak sales in North America. Shares of the company fell over 4% after the earnings were announced. Analysts have said that shares of the company will react to management commentary on a margin hit due to Lanreotide drug supply issues. In a post-earnings press conference, the company lowered its EBITDA margin guidance to 21% for FY26 from an earlier guidance of 22.75%. The company is betting on Yurpeak to boost sales in its chronic weight management segment. Yurpeak is an injectable drug that mimics glucose-dependent insulinotropic polypeptide and glucagon-like peptide-1 hormones.

The earnings of Dr. Reddy's Laboratories were a positive surprise as the impact of generic Revlimid's price erosion was not entirely felt in the December quarter, Manchanda said. The analyst expects ex-US market growth to support sales of major pharma companies going forward, particularly led by India, where glucagon-like peptide-1 sales will have a tangible impact on margins from the June quarter. If Dr. Reddy's gets approval for the launch of Semaglutide in Canada before May, it will have a meaningful impact on the company's net profit for FY26, Manchanda said. The analyst believes that Dr. Reddy's earnings were high due to positive foreign exchange impact, rather than any fundamental strength.

For the week ended Jan. 23, the Nifty Pharma index ended more than 2% lower at 21722.25 points. Shares of Piramal Pharma were the worst hit in the index. They were down nearly 9% for the week. Cipla shares fell over 4% in the last five sessions. The Nifty Pharma index has been in a phase of consolidation for several months, and technical analysts expect the trend to continue next week.

TOP HEADLINES

* Earnings Review: Weak North America sales drag down Cipla's Q3 PAT 57% YoY
* Sun Pharma gets DCGI nod to make, mkt generic semaglutide injection in India
* IPO Alert: Sai Parenteral's gets SEBI nod for public issue, says co
* Syngene International Oct-Dec PAT falls 87% on year as sales decline 5%
* Alivus Life Oct-Dec PAT rises 9.7% YoY to INR 1.5 billion
* Zydus Life launches Nivolumab biosimilar under brand 'Tishtha' in India
* Analyst Concall: Dr Reddy's mgmt says current India sales growth sustainable
* Dr Reddy's to launch semaglutide injection in India in March
* Earnings Review: Weak US sales pull down Dr Reddy's Q3 consol PAT 14% on yr
* JB Chemicals' Nikhil Chopra resigns as CEO, effective Mar 31
* Lupin arm in pact with Galenicum Health for semaglutide across 23 countries
* Earnings Outlook: Weak US sales to drag down Cipla's Q3 net profit
* HC refuses monopoly on alphabets, rejects Alkem Lab plea on A TO Z trademark
* ICICI Prudential MF sells over 2% stake in Alkem Labs over 8 months
* Earnings Outlook:Low base to boost Biocon Q3 PAT, biosimilars to drive sales
* JB Chemicals Oct-Dec PAT rises 15% on year to INR 1.79 billion

Following are the resistance and support levels for key pharmaceutical stocks for next week as per calculations based on their prices on the National Stock Exchange:

End

Reported by Eshitva Prakash

Edited by Ashish Shirke

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