India's domestic pharmaceutical market experienced its strongest Q4 growth in five quarters during FY26, propelled by a notable volume recovery and a significant structural shift towards value-driven chronic and sub-chronic therapies.
Key Points
- India's pharmaceutical market achieved 10.5 per cent value growth in Q4 FY26, the highest in five quarters, with volume growth improving to 1.7 per cent.
- Chronic and specialty segments, including cardiac, anti-diabetic, and urology, were the primary drivers of growth throughout the quarter.
- There is a pronounced structural shift in the IPM, with chronic and sub-chronic therapies now accounting for 56 per cent of the market, up from 53 per cent in 2022.
- Chronic therapies are expanding at an estimated 12 per cent compound annual growth rate, double the pace of acute therapies.
- The IPM is transitioning towards a value-driven model, supported by longer-duration treatments, higher therapy adherence, and premiumisation.
India's domestic pharmaceutical market closed the March quarter of FY26 on a stronger footing, with growth acceleration and early indications of a volume recovery, according to data from market research firm Pharmarack.
The Indian pharmaceutical market (IPM) recorded value growth of about 10.5 per cent in Q4FY26, the highest seen in the last five quarters.
While pricing remained the primary driver, volume growth showed a notable improvement, rising to around 1.7 per cent compared with near-flat trends in earlier quarters.
Price growth was steady at roughly 5.4-5.5 per cent.
Taken together, the data points to a broad-based recovery, albeit still skewed toward value growth (led by price increases) rather than pure consumption growth.
Quarterly Performance Highlights
Monthly trends through the quarter indicate consistency rather than volatility. January began with a healthy 10.2 per cent growth, followed by a peak of around 11 per cent in February, before moderating slightly to about 10.1 per cent in March.
The steady monthly trajectory suggests that demand was resilient across therapy areas, without any sharp spikes or one-off drivers.
An analysis of therapy performance shows that chronic and specialty segments continued to anchor growth during the quarter.
In January, therapies such as cardiac (14 per cent), anti-diabetic (15.2 per cent) and urology (15.4 per cent) led the market, while respiratory (9.7 per cent) also posted strong gains.
February saw a similar trend, with cardiac (14.8 per cent) and anti-diabetic (15.5 per cent) therapies maintaining momentum, alongside a sharp uptick in vaccines (30.1 per cent) and steady growth in neurology (11.5 per cent) and dermatology (10.9 percent).
By March, the pattern held, with cardiac (14.7 per cent) and anti-diabetic (15.4 per cent) therapies again delivering robust double-digit growth, supported by respiratory (10.7 per cent), neurology (11.6 per cent) and vaccines (22.7 per cent).
The growth across months underscores the increasing dominance of chronic therapies in driving market expansion.
Structural Shift in the IPM
"Changing dynamics of the IPM indicate a strong shift from stable, seasonal demand-driven acute therapies to lifestyle-driven non-communicable diseases that are more chronic and sub-chronic in nature," said Sheetal Sapale, vice president, commercial, Pharmarack.
She added that while acute therapies are volume driven, chronic and sub-chronic therapies are value driven coupled with premiumisation.
According to Pharmarack, the structural shift in the IPM has become more pronounced, with chronic and sub-chronic therapies now accounting for about 56 per cent of the market, up from roughly 53 per cent in 2022.
In contrast, acute therapies have seen their share decline to around 44 per cent in 2026 from 47 per cent in 2022.
The divergence in growth rates between these segments is equally stark.
Chronic therapies are expanding at an estimated 12 per cent compound annual growth rate, nearly double the pace of acute therapies, which are growing at about 6 per cent.
This reflects a deeper transition underway in the domestic market, where lifestyle-related and non-communicable diseases are increasingly shaping demand. Importantly, the contribution to overall growth mirrors this shift.
Chronic and sub-chronic therapies together are contributing around 10 per cent to IPM growth, compared with roughly 7 per cent from acute therapies.
India's pharma market is steadily moving toward a value-driven model, supported by longer-duration treatments, higher therapy adherence and premiumisation.
