The Indian pharmaceutical market reported an 8.6% YoY growth in November 2025, despite on a high base of 10.7% YoY growth in Nov 2024, a Kotak Institutional Equities report stated. In terms of moving annual total (MAT) for the month stood at 8.2% YoY, highlighting that while price hikes contributed to the bulk of the growth, contribution from volumes stood at 160 bps as against 30 bps in MAT from November last year.

Growth was healthy across all key therapies, except for anti-infectives. “Led by continued benefits from pricing and new launches, along with acquisitions and in-licensing deals, we bake in 8-16% YoY domestic sales growth in FY2026E for our coverage,” the report stated.

Chronic therapies grew by 14% and acute therapies by 5% on a yearly basis. Therapies such as oncology, cardiac, vaccines, anti-diabetic, urology, neuro and gynae contributed to the bulk of growth of the pharmaceutical industry. In November this year, revenues of MNC companies grew 13.5% YoY, much higher than 7.6% YoY sales growth for domestic companies.

Including unlisted companies, growth leaders in Nov 2025 were Intas, Glenmark, Lupin, Ajanta, GSK, Pfizer, Sun, Dr Reddy’s, Zydus, Sanofi, JB and Ipca, which posted 9-15% YoY sales growth. On the other hand, key underperformers during the month were Indoco, Alembic, Jagsonpal, FDC, Micro Labs, Mankind, Aristo, Alkem, Abbott, Macleods, USV and Emcure, which posted sales growth of -6% to 6%.

Contributors to November’s MAT was higher pricing (420 bps YoY) and new launches (240 bps YoY). Volume growth contributed 160 bps to November, compared to 120-130 bps contribution to MAT growth in the months of July to September 2025.

Sun Pharma continues to be the market leader with ₹198 billion in MAT sales, commanding an 8.0% market share, while Abbott followed with ₹157 billion in sales and a 6.4% share. Cipla holds the third spot with ₹134 billion and a 5.4% share, driven largely by respiratory and chronic therapies. Mankind Pharma, at ₹118 billion, has a 4.8% market share, with cardiac therapies as its strength. Alkem accounts for ₹96 billion in sales and a 3.9% share, while Intas, with ₹92 billion, holds a 3.7% share. Lupin posts ₹84 billion in MAT sales and a 3.4% share, and Macleods follows closely with ₹82 billion and a 3.3% share. Dr. Reddy’s Laboratories, with ₹78 billion, commands a 3.1% share, while Zydus Lifesciences rounds off the top ten with ₹71 billion in sales and a 2.9% market share.

On the other hand, FDC, Abbott, Mankind, Torrent, USV, Emcure, JB, Ipca and Eris have lost maximum share in the past six months. Mounjaro remained the largest brand by sales in Nov 2025, reporting sales of Rs1.3 billion, compared to Rs1.3 billion in Oct 2025 and Rs1.1 billion in Sep 2025.

“We reiterate that one of the key reasons for muted branded IPM volume growth is continued traction in the alternate channels and estimate a 120-160 bps annual dent on branded IPM growth, at least until FY2028E,” the report said with respect to risk in the pharma sector.

 With Jan Aushadhi’s rapid expansion plan (nearly 16,000 stores now), there is a risk of this hit on the market swelling further. The report also highlighted that current domestic valuations imply the ongoing steady decline in the share of branded generics will continue and do not factor in any further growth deceleration in the next few years. If the share of branded slips further, there is scope for further derating. Yet, a forced change might be ineffective unless the quality conundrum is addressed.