Brokerage firm Choice Institutional Equities expects a mixed quarter for pharmaceutical companies in Q2 FY26, with domestic operations likely to outperform even as growth in the US moderates.

The brokerage has maintained a ‘Positive’ sector view, forecasting EBITDA margins to remain “broadly stable” as companies focus on improving their product mix. Advertisement

While the threat of a proposed US tariff on Indian pharma imports looms, the measure is currently on hold. Choice believes that even if implemented, most companies under its coverage will meet their FY26 targets, given their primary exposure to generics.

Large-cap pharma stocks:

Sun Pharma: Choice expects Q2 revenue to rise 9.4 per cent YoY, led by mid-teens growth in domestic formulations, partially offset by slower US and

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