More Stories

Informist, Friday, May. 08, 2026

MUMBAI – Shares of domestic-facing pharmaceutical companies are expected to rise next week due to expectations of strong net profit growth in the March quarter, lending support to the Nifty Pharma index. While some analysts had previously flagged these stocks as defensive in a volatile market, the optimism around pharma stocks is now because of fundamental strength in their business. The sectoral index has risen above its long-term consolidation levels, where it had been stuck for more than two years, technical analysts said. Earnings of domestic-facing companies will be superior to most large-caps that have significant exposure to the US, and consequently, to the slowdown in generic Revlimid sales.

Pharma majors such as Cipla and Dr. Reddy's Laboratories will likely report good sales growth in India when they release their March quarter earnings next week. "Companies which have a large exposure to the US will probably have a soft quarter in terms of US sales, such as Dr. Reddy's (Laboratories)," Prathamesh Masdekar, research analyst at BP Wealth Management, said. "Large caps will still have good sales growth in India, but it is mostly midcap players that I expect will shine," the analyst said. Presenting his case for Mankind Pharma, the analyst said the company is a domestic-focussed entity which has been increasing its chronic presence gradually, which will benefit its growth trajectory. He added Mankind Pharma's March quarter figures on May 19 will probably be "very strong." 

Contract manufacturing also benefited pharma companies greatly in the March quarter, Masdekar said. Research and development expenditure sets these companies up for growth in the medium term, and it has proven to be a high-margin business, the analyst said. However, with supply disruptions due to the war in West Asia, this margin expansion may be under threat. Pharma stocks are a good buying opportunity over the medium-term owing to glucagon-like-peptide-1, which will show up in large-cap players' revenue in the March quarter, the analyst said. "As more companies enter the fray, the total addressable market of GLP-1 drugs will improve meaningfully," he said.        

The Nifty Pharma index has witnessed a bullish breakout from a two-year-long consolidation zone, setting up targets in the 26000–26500 range over the short to medium term, Vipin Kumaar, assistant vice president at Globe Capital Markets said. "Moving forward, we continue to uphold our buy-on-dips trading approach for selective stocks within this space. Any dip toward the 23500 level should be utilised as a fresh buying opportunity," he said. This week, the Nifty Pharma index rose 3.6% to 24110.30 points whereas the Nifty 50 index managed to rise just 0.7%.

TOP HEADLINES

* Analyst Concall: Biocon to focus on product launches, margin growth in FY27
* Earnings Review: Biocon Q4 PAT hit by fall in profit in 2 of 3 segments
* Biocon to acquire remaining 2% stake in Biocon Biologics for INR 3.31 bln
* Dr Reddy, Nestle Health launch nutrition product for diabetes therapy users
* Analyst Concall: Dabur to pass on impact of inflation to domestic consumers
* Earnings Review: Dabur reports 11-quarter high revenue growth in Q4
* Biocon clarifies Kiran Mazumdar-Shaw to continue as executive chairperson
* Earnings Outlook: Q4 likely mixed for Biocon, biosimilars to drive growth
* US FDA issues 7 observations to Zydus Lifesciences' Ahmedabad unit
* US FDA issues nine observations on Aurobindo Pharma's Telangana mfg unit
* Earnings Outlook: Lupin's PAT, revenue seen surging in Q4 on strong US sales
* Ajanta Pharma Jan-Mar consol PAT rises 18.4% on year to INR 2.67 billion
* Emcure Pharma Jan-Mar consol PAT rises 29% YoY to INR 2.43 billion
* Caplin Point arm gets US FDA final nod for Calcium Gluconate injection
* Biocon's Mazumdar-Shaw picks niece as successor, transition to be gradual
* HC bars United Biotech from selling pdts similar to Sun Pharma arm's Octride
* Lupin gets US FDA approval for Glycerol Phenylbutyrate oral liquid
* Dabur India's unsecured creditors approve plans to merge Sesa Care with co
* Biocon board to mull Thu buying equity shares in arm Biocon Biologics
* Aurobindo Pharma arm Apitoria Pharma's CEO Chaturvedi resigns
* Aarti Industries Jan-Mar PAT jumps 48.5% YoY to INR 1.47 billion
* Wockhardt posts INR-1.66-billion consol PAT in Jan-Mar vs loss yr ago
* OneSource Specialty partner Orbicular gets Health Canada OK for semaglutide
* US FDA issues seven observations to Alkem Lab's manufacturing unit in Daman
* Aurobindo Pharma arm gets Health Canada NOC for biosimilar Bevqolva
* Zydus Lifesciences arm acquires 100% share capital in FBS Medical
* IPO Alert: Hindustan Laboratories gets SEBI nod for fresh issue of INR 5 mln
* Laurus Labs Jan-Mar consol PAT rises nearly 20% YoY to INR 2.79 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 Avishek Dutta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.