India’s pharmaceutical sector is witnessing a strategic turnaround, as profitability across key segments improves due to easing pricing pressures and volume-driven growth. According to a recent report by Equirus Capital, Healthcare Delivery and Diagnostics outperformed expectations in FY25, reporting revenue growth that exceeded their respective FY23-25 CAGR.
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Contract Development and Manufacturing Organization (CDMO): FY25 growth reached 11% vs 8% CAGR, showing the growing demand for pharma contract manufacturing companies.
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API Pharma: Achieved 12.6% growth vs 7.6% CAGR, reflecting stronger domestic and international demand.
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PAN India Hospitals and Diagnostics: Growth stood at 16% and 13.6% respectively, surpassing past trends, powered by higher Average Revenue Per Occupied Bed (ARPOB) and improved case mix.
While capital expenditure surged across Tier 2 and Tier 3 cities with government-backed PPP models and greenfield projects, Return on Capital Employed (ROCE) slightly dipped due to ongoing capacity expansions.
The diagnostics segment experienced expansion via franchise models, automation, and increased hub utilization, resulting in margin improvements. Companies are increasingly targeting smaller towns through cost-effective franchise centres, boosting test volumes and reducing logistics costs.
In contrast, branded formulations and generics faced pressure. Generics saw a slowdown in revenue growth from 10.6% in FY24 to 7.6% in FY25, mainly due to US pricing pressure and geopolitical uncertainties. However, EBITDA margins improved owing to a favorable product mix and strong operational execution. Branded pharma companies are shifting toward chronic therapies and specialty segments to stay resilient, also adjusting field force strategies to reduce costs.
The Rs. 5,000 crore PRIP scheme by the Government of India is poised to transform the pharmaceutical sector from a generics-focused to an innovation-driven market. This scheme is expected to drive Rs. 17,000 crore in additional R&D investments, setting the stage for Indian companies to capitalize on the upcoming patent expiry of 24 blockbuster drugs worth over USD 250 billion by 2030.
In this context, DM Pharma Global remains one of the most trusted monopoly medicine companies in India that uses its extensive product lines and solid infrastructure to supply its franchise partners and spread out to the emerging market.
As the price pressure subsides and the government prods innovation-related initiatives, the pharma industry in India is all set to find a sustainability and companies such as DM Pharma Global are the ones that have the capability to spearhead the change.\
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📞 Call: +91-9216325808
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📍 Address: SCO-177, Second Floor, Sector 38C, Chandigarh – 160036
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