Indian Pharma Q2 Outlook: Pricing Pressure And US Competition May Weigh On Select Drugmakers, While Leading Players Could Report Growth

The pharma Q2 outlook for the September quarter of FY27 suggests an uneven earnings season. Sun Pharmaceutical Industries, Aurobindo Pharma, Torrent Pharmaceuticals and Divi’s Laboratories are expected to be among the stronger performers.

Dr Reddy’s Laboratories, Lupin and Cipla may face challenges from tougher competition and the absence of some high-margin opportunities available a year earlier.

On the National Stock Exchange (NSE), here is how these pharma stocks were trading at 10:33 am on 19 October 2026:

• Sun Pharma shares: ₹1,754.30, down 0.26%

• Aurobindo shares: ₹1,658.50, down 0.50%

• Torrent Pharma shares: ₹4,603, up 0.97%

• Divi’s Lab shares: ₹9,240, up 1.04%

• Dr Reddy’s shares: ₹1,239, up 0.49%

• Lupin shares: ₹1,953.20, down 0.43%

• Cipla shares: ₹1,332, up 0.52%

Sun Pharma And Aurobindo May Lead Pharma Q2

Sun Pharma is expected to record high-single-digit revenue growth, supported by domestic and emerging markets and speciality products such as Leqselvi, Unloxcyt and Winlevi. Sales in its global speciality, emerging-market and domestic businesses are projected to rise by double digits.

Earnings before interest, tax, depreciation and amortisation (EBITDA) may grow in the mid-single digits, although research and development (R&D) spending and raw material costs could slightly reduce margins.

Aurobindo Pharma’s revenue growth is expected to benefit from the Lannett acquisition, European business performance and stability in the US market. EBITDA could increase by strong double digits, with margins remaining stable. The integration of Lannett and the ramp-up of its 6-APA/Pen-G facility are key factors to watch.

US Competition Could Weigh On Dr Reddy’s, Lupin And Cipla

Dr Reddy’s revenue is expected to remain flat as weakness in North America, lower Revlimid contribution and semaglutide supply constraints in Canada offset growth elsewhere. Lower product mix could also reduce EBITDA and margins. The restoration of semaglutide supplies and resolution of US Food and Drug Administration (USFDA) observations remain key monitorables.

Lupin’s revenue may rise in high single digits on the back of India and other non-US markets, along with the Visufarma acquisition. However, competition in Mirabegron and Tolvaptan could reduce US sales.

Cipla’s revenue is expected to remain broadly flat despite strong double-digit growth in India, as a high base for Revlimid and weaker One Africa revenue following the loss of a South African tender weigh on performance.

Torrent Pharma And Divi’s Labs May Find Support

Torrent Pharma is likely to show the highest revenue growth among its peers post-consolidation of JB Pharma. Its core business is predicted to stay healthy in India and the US.

Divi’s Laboratories may benefit from custom synthesis, nutraceutical demand and the expansion of iodine-based contrast media products. Inventory trends, geopolitical developments and sustained custom synthesis demand remain important factors to monitor.

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