Indian Pharma Market Posts Strong FY26 Close, Volume Growth Resumes Amid Chronic Therapy Demand

Indian Pharmaceutical Market Sees Strongest Quarterly Performance in Over a Year

The Indian Pharmaceutical Market (IPM) closed the January-March 2026 quarter on a high, capping the fiscal year 2026 with its strongest quarterly performance in more than a year. The market saw a significant recovery in volumes and a firming up of demand in key chronic therapies, such as diabetes and cardiovascular medicines. However, growth remained uneven, with acute treatments like antibiotics and painkillers struggling to regain momentum.

According to data from PharmaTrac, the IPM grew by approximately 10.5 percent year-on-year in value in the March quarter, accelerating from the December quarter and marking a steady improvement through the second half of the year. More importantly, volume growth turned decisively positive, ending a prolonged phase where market expansion had leaned almost entirely on price hikes. The IPM volume growth recovered to approximately 1.7 percent in the March 2026 quarter, the strongest quarterly unit growth seen in over a year.

| Segment | December Quarter Growth | March Quarter Growth | Rolling Twelve-Month Growth (MAT March 2026) | | --- | --- | --- | --- | | IPM Value Growth | 9.2% | 10.5% | 9.8% | | IPM Volume Growth | -0.2% | 1.7% | 0.6% |

The quarter's standout performers were chronic therapies, reflecting India's shifting disease profile. Cardiac drugs recorded mid-teens value growth, while anti-diabetic therapies expanded even faster, comfortably outpacing the broader market. Together, these segments now account for nearly a quarter of IPM sales, underlining their growing centrality to domestic pharmaceutical demand. BNP Paribas, in its March-quarter preview, described the period as a "strong quarter for domestic formulations", driven largely by chronic categories.

The divergence in growth between chronic and acute categories is increasingly visible at the prescription level. Longer treatment durations, improved diagnosis rates, and greater adoption of newer therapies have strengthened demand for diabetes and cardiovascular drugs, making growth less seasonal and more structural. Acute categories, on the other hand, saw muted or flat unit growth in the March quarter, with antibiotics posting only modest value growth and weak volumes.

The return of volume as a contributor to growth in the March quarter is a notable development. After several quarters where IPM expansion was driven almost entirely by prices, improving unit sales added meaningfully to the topline. A better mix of new launches, improved availability, and steady additions of chronic patients helped lift volumes, particularly in chronic therapies. While price increases continued to account for a meaningful portion of growth, industry data suggests the balance between price and volume was healthier than in previous quarters—an encouraging sign for sustainability.

At the company level, the therapy split played out clearly. Drugmakers with strong exposure to diabetes, cardiac, and respiratory therapies, such as Sun Pharma, Torrent Pharma, and Cipla, outperformed the market, while those more dependent on acute therapies saw slower growth. BNP Paribas pointed out that India-facing portfolios remained the most resilient part of pharma earnings, cushioning companies from margin pressures and slowdown risks in international markets.