Ahmedabad Times

ET Intelligence Group: Prescription drugs and healthcare firms are set for a combined March-quarter. Hospital chains are anticipated to ship regular progress whereas generic drugmakers face strain from the absence of Revlimid-related gross sales and pricing headwinds. Lupin is anticipated to ship robust progress in income, margin and revenue, whereas Divi’s is prone to profit from enhancing contract improvement demand and working leverage. Solar Pharma and Torrent are anticipated to submit regular progress led by diversified portfolios and home power, whereas Apollo Hospitals might even see resilient traction throughout hospitals, pharmacy and diagnostics.

Solar Pharma is anticipated to learn from robust momentum in India and Europe with incremental enchancment within the US led by specialty merchandise. New launches and the next specialty contribution are anticipated to assist progress whereas margins face sequential strain from increased analysis and improvement (R&D) spends.

Aurobindo Pharma is prone to report single-digit income progress supported by regular efficiency throughout areas aside from the US the place gross sales are prone to fall by 10% because of slack in gRevlimid gross sales. Europe could develop in double-digits pushed by increased biosimilars gross sales. The working revenue earlier than depreciation and amortisation (Ebitda) is anticipated to stay flat whereas Ebitda margin could decline by 80-100 basis-points (bps). Key monitorables embrace ramp-up on the 6-APA plant and backbone of USFDA observations at Eugia amenities.

Dr Reddy’s shall be one other firm to be affected by decreased enterprise of gRevlimid following patent expiry and one-time influence of shelf inventory changes. Its India enterprise is prone to fare higher, supported by robust traction in ache, respiratory and gastro segments. Ebitda may decline 28-30% with round 600 bps of margin contraction. Key monitorables embrace semaglutide progress in Canadian market and model litigation with Novo Nordisk for semaglutide merchandise in India.

Lupin’s US income is anticipated to be robust pushed by traction in Tolvaptan, Mirabegron, g-Spiriva and Glucagon, partly offset by Albuterol pricing strain. Home gross sales are prone to develop in double-digits, pushed by increased deal with power therapies, whereas rising markets are anticipated to drive progress. Ebitda is projected to leap round 50% year-on-year. The margin could decline sequentially because of increased R&D spends, elevated advertising and marketing prices and absence of PLI earnings.

Cipla’s gross sales are anticipated to say no because the US market faces increased competitors in g-Revlimid enterprise and decrease Lanreotide gross sales following provide disruptions. Its India enterprise is anticipated to be pushed by respiratory and anti-diabetic therapies, offset by subdued efficiency in ache. Ebitda is anticipated to fall 32-38% with margins contracting by 700-800 bps, reflecting decrease US contribution and strain on gross margins.
Apollo Hospitals income progress to be supported by regular efficiency throughout segments. The hospitals phase gross sales progress might be in double-digits, aided by new mattress additions and improve in common income per affected person. HealthCo income is projected to develop in excessive double-digits, pushed by robust offline pharmacy gross sales, whereas the Ebitda lack of Apollo 24/7 could slender. Consolidated Ebitda is anticipated to rise in double-digits with margin prone to develop by 50 bps. Torrent Pharma’s income is prone to rise in excessive double-digits, led by consolidation of JB Pharma from January 2026 and regular natural progress. Divi’s Laboratories income is anticipated to develop in double-digits on a year-on-year and sequential foundation, pushed by robust momentum in customized synthesis (CS) and a low-base nutraceuticals restoration. Nonetheless, generic API gross sales are prone to decline year-on-year, regardless of a sequential rebound, reflecting pricing strain.