India’s pharmaceutical sector is expected to post moderate growth in the second quarter of the financial year 2025-26 (FY26), with a mix of headwinds from domestic tax changes and pressure in US generics offset by a few new product launches and steady biosimilar sales.

Growth in the domestic pharma segment is projected at around 10% year-on-year, though companies may face a 50-200 basis point impact from lower primary sales following the goods and services tax (GST) rate revisions in September 2025. Chronic-focused firms such as Sun Pharma , Torrent Pharmaceuticals , and Zydus Lifesciences are expected to do better, while acute-heavy players like Alkem and Mankind could see softer growth.

In the US generics business, overall sales are expected to remain flat quarter-on-quarter,

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