Major domestic drug firms to report 8-10% revenue growth in FY24: Icra

Leading domestic pharmaceutical companies are expected to report a revenue growth of 8-10 per cent in the current fiscal, Icra said on Friday. The rating agency expects growth of its sample set of 25 companies, which account for 60 per cent of the overall Indian pharmaceutical industry, to sustain at 8-10 per cent in FY2024.

This is likely to be supported by continued price increases, new product launches and rising penetration of healthcare services in semi-urban and rural areas, Icra said in a statement.

Despite several disruptive events over the last few years, the domestic drug market witnessed a healthy CAGR (Compound Annual Growth Rate) of 9.7 per cent between FY2014 and FY2023, it added.


Growth in recent years has largely been supported by price increases and new product introductions even as volume growth has been negative or 2-3 per cent at best, the rating agency noted.

It further stated that acute therapies, accounting for 62-65 per cent of the pharma industry, have continued to outpace growth in chronic therapies since FY2022. However, the trend is expected to reverse going forward, it noted.

"With increasing incidence of lifestyle diseases and given the long duration of medicine courses for chronic diseases, the growth of chronic therapies in the IPM (Indian Pharmaceutical Market) is expected to be higher than that of acute therapies," Icra said.