India’s Pharmaceutical Market Grows 17.1% to ₹25,300 Crore in September 2026, Strongest Growth in Three Years

India’s domestic pharmaceutical market recorded its strongest monthly growth in three years during September 2026, expanding by 17.1% year-on-year to approximately ₹25,300 crore. The performance was supported by rising medicine consumption, stronger demand for chronic disease treatments and increased sales across several important therapeutic categories, including diabetes, cardiovascular care, oncology and nutritional products.

According to a pharmaceutical sector report released by Equirus Securities on October 14, 2026, market growth accelerated from 13.1% in August to 17.1% in September. This represented a substantial improvement over the 6.6% growth recorded in September 2025. The report, highlighted by Express Pharma on October 15, also identified strengthening medicine sales volumes as an important contributor to the industry’s expansion.

The domestic pharmaceutical market demonstrated sustained growth throughout the July–September quarter of FY 2026–27, with sales reaching ₹74,610 crore, representing a year-on-year increase of 14.7%. The performance reflects expanding demand for medicines across chronic and acute treatment categories and highlights the growing importance of India’s domestic healthcare market.

India’s Pharmaceutical Sales Reach ₹25,300 Crore in September

The Indian Pharmaceutical Market (IPM) recorded sales of approximately ₹253 billion, equivalent to ₹25,300 crore, during September 2026. The 17.1% year-on-year increase marked the highest monthly growth rate recorded in the preceding three years, according to Equirus Securities.

The expansion followed an already strong performance in August, when the industry registered 13.1% growth. The acceleration in September demonstrates improving commercial activity across pharmaceutical manufacturers, distributors and retail medicine channels.

One of the most significant developments was the increase in medicine sales volumes. Unit growth reached 5.4% during September, marking the strongest monthly performance since October 2023. This indicates that the expansion was supported by a greater quantity of medicines sold rather than relying exclusively on higher prices.

The improvement is particularly important because pharmaceutical market growth can arise from several factors, including increased medicine consumption, price adjustments, the introduction of new products and changes in the types of medicines purchased.

The latest figures show that volume growth is becoming an increasingly important component of India’s pharmaceutical market expansion. Greater medicine consumption reflects a combination of treatment demand, wider market penetration and changes in healthcare utilisation.

Pharmaceutical Market Records 14.7% Growth in Second Quarter of FY 2026–27

India’s pharmaceutical market maintained strong growth throughout the second quarter of the financial year, covering July to September 2026.

According to Equirus Securities, pharmaceutical sales reached ₹74,610 crore during the quarter, representing an increase of 14.7% over the corresponding period of FY 2025–26. The growth rate was substantially higher than the 7.7% recorded in the second quarter of the previous financial year.

The latest quarterly performance also exceeded the 13.9% growth achieved during April–June 2026, demonstrating continued expansion across successive quarters.

On a Moving Annual Total (MAT) basis, which measures market performance over the preceding 12 months, pharmaceutical industry growth increased to 13.2% in September 2026. The corresponding growth rate stood at 12.3% in August and 7.9% in September 2025.

The improvement in annualised growth suggests that the industry’s expansion extends beyond a single strong month. It also highlights the contribution of medicines used in long-term disease management, which generate recurring demand across different treatment categories.

The quarterly performance provides a positive indication of the domestic business environment for Indian pharmaceutical manufacturers, particularly companies with substantial exposure to cardiovascular, diabetic, nutritional and specialised therapeutic products.

Medicine Sales Volume Becomes a Major Driver of Pharmaceutical Growth

An important finding of the Equirus Securities report is the changing composition of pharmaceutical market growth.

On a Moving Annual Total basis, medicine volumes contributed approximately 4.9 percentage points to market growth, compared with 0.9 percentage points during the corresponding period of the previous year.

Price increases contributed 4.8 percentage points, while new product introductions accounted for approximately 3.4 percentage points.

A year earlier, the corresponding contributions from prices and new products stood at 4.6 and 2.4 percentage points, respectively. The stronger contribution from volumes indicates that sales growth has become less dependent on price adjustments.

This development is relevant to India’s healthcare industry because increased medicine consumption can reflect greater access to treatment, improved diagnosis and growing demand for established therapies.

The report attributed the strengthening of volume growth to factors including increased diagnosis, greater attention to preventive healthcare, regulatory developments and the growing prevalence of chronic lifestyle-related diseases.

The figures also highlight the importance of distribution networks, pharmaceutical retail infrastructure and the availability of medicines across urban and non-metropolitan markets.

As Indian pharmaceutical companies expand their reach, improvements in distribution and product availability can support stronger sales volumes while contributing to the accessibility of medical treatments.

Diabetes Medicines Register 21.2% Growth in September

Medicines used in diabetes management emerged as one of the fastest-growing categories in India’s pharmaceutical market during September 2026.

According to the Equirus Securities report, the anti-diabetic therapeutic segment registered 21.2% year-on-year growth, significantly exceeding the overall pharmaceutical market growth rate.

During the July–September quarter, the category recorded growth of 19.3%, demonstrating sustained demand for medicines used in managing diabetes.

Diabetes is a major public health challenge in India, creating substantial requirements for long-term medical treatment, monitoring and preventive healthcare.

Patients with diabetes frequently require continuing medication to manage blood glucose levels and reduce the risk of complications affecting the heart, kidneys, eyes and nervous system.

The pharmaceutical market includes several categories of diabetes medicines, ranging from established oral therapies to newer treatments developed through advances in pharmaceutical research.

Growing demand for diabetes medicines reflects the importance of chronic disease management within India’s healthcare system. It also creates opportunities for pharmaceutical manufacturers to expand research, improve drug delivery systems and strengthen the availability of established and newer treatment options.

The performance of the anti-diabetic segment highlights the increasing contribution of long-term therapies to India’s pharmaceutical industry.

Cardiovascular Medicines Grow 20.4% as Chronic Disease Treatment Expands

The cardiovascular therapeutic segment recorded 20.4% year-on-year growth in September 2026, making it another major contributor to the domestic pharmaceutical market’s expansion.

Cardiovascular medicines are used in the management of conditions such as hypertension, coronary artery disease, heart failure and disorders affecting blood cholesterol.

Many cardiovascular conditions require sustained treatment and regular medical supervision, creating recurring demand for medicines over extended periods.

The growth of the cardiac segment reflects the importance of cardiovascular disease management within India’s healthcare requirements.

During the second quarter of FY 2026–27, cardiovascular medicines registered growth of 17.5%, according to Equirus Securities.

The continued expansion of this category supports demand for pharmaceutical manufacturing, distribution and specialised healthcare services.

It also highlights opportunities for Indian companies developing combination medicines, improved drug formulations and other products intended to support long-term cardiovascular treatment.

With diabetes and cardiovascular diseases representing important components of India’s non-communicable disease burden, medicines used in these therapeutic areas are becoming increasingly significant to the domestic pharmaceutical industry.

Vitamins, Minerals and Nutritional Products Lead Major Therapy Segments

The vitamins, minerals and nutritional products segment recorded the highest growth among the ten major therapeutic categories tracked by Equirus Securities.

Sales in the category increased by 22.2% year-on-year during September 2026, reflecting strong demand for nutritional supplements and medically prescribed products.

The segment includes vitamins, mineral preparations and other nutritional formulations used in clinical nutrition, deficiency management and supportive healthcare.

Increasing attention to nutritional requirements, preventive healthcare and the management of deficiencies has contributed to the commercial importance of this category.

During the July–September quarter, the segment registered growth of 18.5%, maintaining its position among the strongest-performing pharmaceutical categories.

The expansion provides opportunities for pharmaceutical and healthcare companies manufacturing vitamins, mineral combinations and specialised nutritional formulations.

The category’s performance also reflects a wider trend in which preventive care, nutritional support and the management of chronic conditions are becoming important components of healthcare expenditure.

Oncology Medicines Record 29.4% Growth

Medicines used in cancer treatment registered particularly strong growth during September 2026.

According to the Equirus Securities report, the oncology segment expanded by 29.4% year-on-year, making it one of the fastest-growing specialised pharmaceutical categories.

Oncology medicines include treatments used against different types of cancer, such as conventional chemotherapy, targeted therapies, hormonal medicines and immunotherapies.

Advances in cancer diagnosis and treatment have increased the range of available medicines, while growing access to specialised medical services has expanded the market for oncology products.

During the July–September quarter, the oncology segment recorded growth of 27.5%, indicating sustained expansion in this specialised therapeutic area.

The growth is relevant to India’s pharmaceutical research and biotechnology industries because cancer treatment increasingly involves complex medicines, including monoclonal antibodies, biological products and targeted therapies.

Indian companies have been expanding their capabilities in oncology formulations, biosimilars and specialised pharmaceutical manufacturing.

The rising commercial importance of oncology medicines creates additional opportunities for research, domestic manufacturing and the development of more accessible cancer treatments.

Vaccine and Urology Segments Also Register Strong Growth

Beyond the ten major therapeutic categories, vaccines and urology medicines also recorded notable expansion during the second quarter of FY 2026–27.

According to Equirus Securities, the vaccine segment grew by 20% during July–September 2026, while urology medicines registered growth of 19.3%.

Vaccines are an important component of preventive healthcare, supporting protection against several infectious diseases through immunisation programmes and other medical services.

India has an established vaccine manufacturing industry, with domestic companies supplying vaccines to Indian healthcare institutions and international markets.

The expansion of the vaccine category reflects its continuing importance within pharmaceutical manufacturing and public health.

Urology medicines address conditions affecting the urinary system and related organs, including disorders requiring specialised treatment and long-term management.

The growth of these categories demonstrates the increasing diversity of demand within India’s pharmaceutical market, extending beyond the largest chronic disease segments.

Dermatology, Neurology and Gastroenterology Medicines Maintain Double-Digit Growth

Several other therapeutic categories recorded strong sales growth during September 2026, contributing to the broad-based expansion of the domestic pharmaceutical market.

Medicines used in pain management registered 20% growth, while dermatology products increased by 19.6%.

Neurology and central nervous system medicines recorded growth of 17.9%, followed by gastroenterology treatments at 17.6% and gynaecology medicines at 16.6%.

The strong performance across these segments indicates that pharmaceutical market expansion was not concentrated exclusively in diabetes and cardiovascular treatments.

Neurological medicines cover conditions affecting the brain, spinal cord and nervous system, while gastroenterology products address digestive disorders and related medical requirements.

Dermatology medicines include treatments for skin diseases, infections and other dermatological conditions.

The expansion across these categories provides a wider base of demand for Indian pharmaceutical manufacturers, supporting production and distribution activities across multiple treatment areas.

Respiratory medicines recorded a comparatively modest growth rate of 3.1% during September, while anti-infective medicines expanded by 9.3%.

The performance of these categories reflects differences in seasonal demand and treatment patterns, with respiratory and anti-infective medicine sales often influenced by changes in infectious disease incidence.

Zydus Leads September Growth Among Major Pharmaceutical Companies

The Equirus Securities report examined the domestic sales performance of ten major pharmaceutical companies, all of which recorded double-digit growth during September 2026.

Zydus recorded the highest monthly growth among the tracked companies at 19.7%, supported by its presence across several important therapeutic segments.

Torrent Pharmaceuticals followed with growth of 18.9%, while Sun Pharmaceutical Industries registered an increase of 17.6%.

Mankind Pharma recorded 17.3% growth, followed by Dr. Reddy’s Laboratories at 17.2%.

Ipca Laboratories reported growth of 16.2%, while Lupin registered 16.1%. Cipla’s domestic sales increased by 15.2%, followed by Alkem Laboratories at 14.8% and Abbott India at 14.6%.

The performance demonstrates the contribution of established pharmaceutical manufacturers to India’s expanding domestic medicines market.

Companies with strong product portfolios in diabetes, cardiovascular care, oncology and nutritional medicines generally benefited from faster growth in these therapeutic categories.

The results also reflect the importance of established medicine brands, distribution networks and product availability in supporting pharmaceutical sales.

Dr. Reddy’s Laboratories Leads Quarterly Growth at 21%

While Zydus led the monthly growth rankings, Dr. Reddy’s Laboratories recorded the strongest performance among the ten tracked companies during the July–September quarter, achieving growth of approximately 21%.

The company’s quarterly growth exceeded the overall pharmaceutical market growth rate of 14.7% by approximately 6.3 percentage points.

According to the Equirus Securities report, Dr. Reddy’s benefited from its presence in faster-growing therapeutic categories, particularly oncology and vaccines.

Torrent Pharmaceuticals recorded quarterly growth of 16.9%, followed by Zydus at 16.3%.

Lupin registered growth of 15.8%, while Mankind Pharma expanded by 15.7% and Sun Pharma by 15.3%.

Other companies recorded positive growth during the quarter, including Ipca Laboratories at 14.4%, Alkem Laboratories at 13.9%, Cipla at 13.8% and Abbott India at 12.3%.

The results illustrate how companies with different therapeutic portfolios can experience varying growth rates even when the overall pharmaceutical market is expanding strongly.

Exposure to faster-growing medicine categories, established product portfolios and distribution capabilities remain important factors influencing individual company performance.

Chronic Disease Medicines Drive Long-Term Pharmaceutical Market Expansion

The pharmaceutical market’s latest performance highlights the increasing importance of chronic disease treatment in India.

According to Equirus Securities, medicines used for chronic conditions recorded 16.8% growth on a Moving Annual Total basis, compared with 10.9% growth in acute therapies.

Chronic conditions generally require continuing medical management, creating recurring demand for medicines over months or years.

Diabetes, cardiovascular diseases and certain neurological conditions are examples of illnesses that frequently require long-term pharmaceutical treatment.

Acute therapies, by comparison, often address conditions requiring shorter treatment periods, including infections and other temporary medical problems.

The faster growth of chronic therapies reflects changing patterns of healthcare demand and the increasing commercial importance of medicines used in long-term disease management.

However, the improvement in acute therapy growth demonstrates that the industry’s expansion is becoming more broadly distributed across treatment categories.

The combination of chronic and acute medicine demand provides a diversified market for pharmaceutical companies operating in India.

Domestic Pharmaceutical Growth Supports India’s Healthcare and Manufacturing Industries

The expansion of India’s pharmaceutical market has implications beyond the commercial performance of individual drug manufacturers.

Growing medicine sales support activity across pharmaceutical manufacturing plants, formulation facilities, packaging operations, distribution networks and retail pharmacies.

The industry also generates demand for active pharmaceutical ingredients, pharmaceutical excipients, specialised chemicals and manufacturing equipment.

India possesses a large pharmaceutical manufacturing ecosystem with capabilities spanning generic medicines, specialised formulations, vaccines, biological products and active pharmaceutical ingredients.

Stronger domestic demand can support capacity utilisation and investment in manufacturing, product development and distribution infrastructure.

The continued expansion of healthcare facilities, diagnostic services and treatment availability also creates opportunities for pharmaceutical companies to introduce new formulations and improve access to existing medicines.

At the same time, the increasing importance of specialised therapeutic categories is encouraging companies to strengthen research capabilities in oncology, metabolic diseases and other complex treatment areas.

These developments support India’s broader ambitions to expand domestic pharmaceutical manufacturing and strengthen its position as a major producer of medicines.

India’s Pharmaceutical Industry Enters a Stronger Phase of Domestic Growth

India’s pharmaceutical market reaching approximately ₹25,300 crore in September 2026 represents an important milestone for the country’s healthcare and pharmaceutical manufacturing industries.

The 17.1% annual growth rate, the strongest monthly performance in three years, demonstrates improving market activity across several therapeutic categories.

Equally significant is the improvement in medicine sales volumes, which reached 5.4% during September and emerged as an important contributor to overall market growth.

The strong performance of anti-diabetic medicines, cardiovascular treatments, nutritional products and oncology therapies reflects the changing composition of India’s healthcare requirements.

Major domestic manufacturers, including Zydus, Dr. Reddy’s Laboratories, Torrent Pharmaceuticals, Sun Pharma and Mankind Pharma, continue to benefit from expanding demand across important therapeutic categories.

With quarterly pharmaceutical sales reaching ₹74,610 crore and annualised market growth strengthening, India’s domestic medicines industry is demonstrating sustained commercial momentum.

The increasing contribution of medicine volumes, wider treatment demand and diversified pharmaceutical portfolios provides a strong foundation for continued development of India’s healthcare manufacturing ecosystem.

As pharmaceutical companies expand production capabilities, strengthen distribution networks and invest in specialised medicines, the sector will continue to play an important role in improving medicine availability, supporting employment and advancing India’s pharmaceutical manufacturing capabilities.

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References

1. Express Pharma. Indian Pharmaceutical Market Records 17.1% Growth in September: Equirus Securities. October 15, 2026. Based on the Equirus Securities Healthcare & Pharmaceuticals Sector Report dated October 14, 2026.https://www.expresspharma.in/indian-pharmaceutical-market-records-17-1-growth-in-september-equirus-securities/
2. Equirus Securities. Healthcare & Pharmaceuticals Sector Report. October 14, 2026. Market growth, quarterly performance, therapeutic segment trends and company comparisons, as reported by Express Pharma.https://www.equirus.com/
3. ICICI Direct Research. Indian Pharma Market Grew at 17.1% YoY to ₹25,276 Crore in September 2026. October 12, 2026. Analysis based on IQVIA pharmaceutical market data.https://www.icicidirect.com/research/equity/blog/indian-pharma-market-grew-at-17-percent-yoy-to-rs-25276-crore-in-sept-2026
4. Business Standard. IPM Volume Growth at 3.4% Marks Two-Year High on Steady Demand Across Therapies. October 8, 2026. Analysis based on Pharmarack market data.https://www.business-standard.com/industry/news/ipm-volume-growth-at-3-4-marks-2-yr-high-on-steady-demand-across-therapies-126100800747_1.html
5. CRISIL Ratings. Pharma to See Stronger Dose of Revenue Growth at 11–13% This Fiscal. September 24, 2026. Industry assessment of pharmaceutical manufacturing, domestic demand and export growth.https://www.crisilratings.com/en/home/newsroom/press-releases/2026/09/pharma-to-see-stronger-dose-of-revenue-growth-at-11-13-percent-this-fiscal.html

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