Pharma sector seen growing at 8-10 pc in FY25, says CRISIL

The Indian pharmaceutical sector is expected to see revenue growth of 8-10% this financial year, driven by strong exports to regulated markets such as the US and Europe, a recovery in semi-regulated markets including Africa and Asia, and consistent domestic demand, according to a report by CRISIL Ratings. This growth follows a successful previous year with roughly 10% expansion. A key factor supporting this positive outlook is the easing pricing pressure in the US generics market and improved operating leverage, leading to an expected rise in operating margins by 70-80 basis points to approximately 22.5%. The sector is also expected to benefit from steady cash flows and low financial leverage, which will help maintain stable credit profiles, even as pharmaceutical companies pursue acquisitions in niche therapeutic areas, said a report.