Domestic pharmaceutical market value reached Rs 70,180 crore in the September quarter, recovering sharply from the modest 6% to 8% growth range observed earlier in 2025. This performance was largely propelled by double-digit revenue expansions at major firms such as Sun Pharma, Torrent Pharma, and Mankind Pharma. However, the gains remain uneven across therapeutic categories, with anti-infectives lagging behind the high demand seen in cardiology, oncology, and diabetes care. Market totals were further influenced by regulatory closures under revised Schedule M rules, which effectively redirected sales from unaudited smaller operations toward audited major producers.
Key points
Regulatory closures of non-compliant small drugmakers helped shift market demand to large…: Regulatory closures of non-compliant small drugmakers helped shift market demand to larger pharmaceutical manufacturers.
Market expansion remains concentrated in chronic therapies rather than lifting acute cate…: Market expansion remains concentrated in chronic therapies rather than lifting acute categories like anti-infectives.
A reduction in the Goods and Services Tax on medicines helped support stronger sector per…: A reduction in the Goods and Services Tax on medicines helped support stronger sector performance.
Sources checked by our analysis pipeline: 1
The uptick contrasts with a slowing growth trend seen during most of 2025, which hovered around 6%-8%.
According to PharmaTrac, the industry grew 12% year-on-year to Rs 70,180 crore in the September quarter in value terms. The growth rate was 11% in the preceding two quarters and 10% during October-December 2025.
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The third quarter of 2025 saw a growth of 7%.
The Central Drug Standard Control Organization (CDSCO) ordered shutdown of several hundreds of non-compliant small and medium scale units over the last two years, and their sales may have shifted to larger players, industry experts explained, noting that PharmaTrac, a prescription sales tracking agency, does not audit small and medium units.
Over 60% of roughly 8,500 small and medium-sized pharma units were feared to face closure due to non-compliance with the revised Schedule M provisions of the Drugs and Cosmetic Rules, 1945.
The growth is also partly attributed to a cut in GST on medicines from 12% to 5% in September last…
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