Pharmaceuticals: IPM: 11% Growth in Mar-26; 10% in FY26

As per IQVIA, IPM recorded growth for Feb-26 at 11% YoY (vs 12% in Feb-26); unit decline by 0.2% YoY (0.9%% in Feb-26). Growth was led by CVS, anti-diabetes, pain, VMN, and oncology segments, while growth in anti-infective and respiratory was below IPM growth. For Q4FY26, IPM grew 12% YoY and FY26 grew 10% YoY, led by ~2.7% volume, 4.4% price, and 2.8% new products.

Therapy-Wise Performance for Mar-26:

• Overall, chronic growth was strong for Mar-26 at ~14% YoY, and the acute segment saw ~8% YoY growth.
• In chronic space, CVS grew 15% YoY (FY26: +14%) in Mar-26, anti-diabetic at 14% (FY26: +12%), and CNS at +11% (FY26: +11%).
• In acute, anti-infectives grew by 2% YoY (FY26: +5%), gastro grew 9% YoY (FY26: +6%), and VMN was up 13% YoY (FY26: +10%).
• Other therapies: Respiratory grew 7% YoY (FY26: +12%), derma was up 9% YoY (FY26: +7%), pain was up 12% (FY26: +8%), and oncology grew 28% YoY (FY26: +24%).

Company Wise Performance:

• Outperformers in Mar-26: Dr Reddy’s, Glenmark, Lupin, Sun Pharma, Ajanta Pharma, and Intas Pharma.
• Underperformers in Mar-26: Alembic, Cipla, Eris Life, Emcure, FDC, Indoco, Macleods, Micro Labs, USV, and Glaxo.
• At par with IPM in Mar-26: Alkem, IPCA, Torrent Pharma, Zydus Life, Aristo Pharma, Mankind, Abbott, Pfizer, and Sanofi.

Our view: IPM growth was steady at 11% YoY in Mar-26, largely led by price growth and traction in chronic therapies. Volume recovery (+2.7% YoY) and steady price growth led to growth recovery in FY26. Within our coverage, Dr Reddy’s, Lupin, and Sun Pharma outperformed IPM; Eris underperformed IPM; and Alkem, IPCA, Mankind, Torrent Pharma, and Zydus grew at par with IPM. The ramp-up in generic semaglutide (~INR 100mn sales in just 10 days) is encouraging and should help drive IPM growth in FY27. Base drivers: steady performance in chronic, recovery in acute, and new launches are intact.

Coverage Companies’ Performance