The pharma stocks continue to be in focus, and the global brokerage firm Nomura rated the sector positively. According to the latest report from the brokerage house, improving growth momentum, strong traction in chronic therapies, and early gains in GLP-1 drugs support the outlook. In terms of stock-specific views, Cipla is Nomura’s preferred pick, while it is also positive on 5 other stocks
While it remains cautious on structural risks, Nomura said that companies with stronger pipelines and differentiated portfolios are better positioned to capitalise on the recovery.
Growth returns, but driven by pricing and launches
The Indian Pharmaceutical Market (IPM) grew 10.1% year-on-year in March 2026, according to the report. Pricing contributed 5.5% to growth, while new product launches added 3.5%. Volume growth remained muted at 1.1%.
The brokerage said the recent growth is mainly due to a low base, steady price hikes, and more new drug launches, especially in newer areas like GLP-1 therapies. At the same time, it warned that rising competition from cheaper generics and private-label medicines remains a long-term concern.
Chronic therapies continue to lead
Nomura said growth is still being driven by chronic treatments, with anti-diabetic and heart-related drugs leading in March. The anti-diabetic segment, in particular, got a boost from new launches after patent expiries and the entry of GLP-1 drugs. Other large therapies, including gynaecology, neurology, dermatology, pain and vitamins, also recorded double-digit growth.
In contrast, acute therapies such as gastro and anti-infectives saw weaker trends, largely due to declining volumes, the report added.
GLP-1 Opportunity Opens Up
A key trigger for the sector is the early traction seen in Semaglutide after its patent expiry in March. Multiple Indian companies have launched generic versions, and even with limited data for the month, the trend appears strong. Extrapolated monthly sales of Semaglutide stood at around Rs 85 crore, compared to Rs 48 crore in the previous quarter, with generics contributing roughly Rs 42 crore.
The brokerage firm added that among domestic players, Dr Reddy’s Laboratories and Zydus Lifesciences have emerged as early leaders, accounting for 39% and 34% of the generic market, respectively, through a mix of owned and partnered products.
The report also noted that there is some moderation in Tirzepatide sales, potentially due to the availability of cheaper Semaglutide alternatives, though it remains too early to assess any structural shift in the market.
| Stock | Rating | Nomura Says |
|---|---|---|
| Cipla | Strongest growth, preferred pick | |
| Sun Pharma | Steady performance, top large-cap | |
| Dr Reddy’s | GLP-1 early leader (39% share) | |
| Zydus Lifesciences | GLP-1 early leader (34% share) | |
| Lupin | GLP-1 beneficiary | |
| Alkem Laboratories | Growth lagging peers | |
| Glenmark Pharma | Fastest MAT growth | |
| Torrent Pharma | Strong growth, upside priced in |
Nomura on Cipla: ‘Buy’
Cipla remains one of Nomura’s preferred picks, with the company delivering the strongest growth among its coverage universe in March.
Cipla reported 14.7% year-on-year growth, outperforming peers both in value and unit terms. According to the brokerage firm, this is a reflection of strong execution and a balanced portfolio across therapies.
Nomura on Sun Pharma: ‘Buy’
Sun Pharmaceutical Industries is also rated ‘Buy’, with the company continuing to deliver steady growth.
On a moving annual total basis, Sun Pharma posted 12.6% year-on-year growth, placing it among the top performers in the large-cap space. The brokerage expects its scale and diversified portfolio to support consistent performance.
Nomura on Dr Reddy’s, Zydus, Lupin: ‘Buy’
Nomura maintains a positive stance on Dr Reddy’s Laboratories, Zydus Lifesciences and Lupin, all of which are rated ‘Buy’.
These companies are seen as key beneficiaries of the emerging GLP-1 opportunity, with early market share gains in Semaglutide strengthening their positioning. The brokerage expects new product launches and participation in high-growth therapies to drive incremental growth.
Nomura on Alkem: ‘Buy’, But Growth Lags
Alkem Laboratories is also rated ‘Buy’, although it was the only company in Nomura’s coverage universe that did not outpace market growth in March.
While near-term performance has lagged peers, the brokerage continues to see value, suggesting that company-specific factors rather than structural issues are weighing on growth.
Nomura Neutral on Glenmark and Torrent
Nomura has a more measured stance on Glenmark Pharmaceuticals and Torrent Pharmaceuticals, both of which are rated ‘Neutral’.
Glenmark recorded the fastest growth on a moving annual basis at 13%, followed by Torrent at 12.1%. Despite strong growth, the ‘Neutral’ rating suggests that much of the upside may already be priced in, with expectations of performance largely in line with the broader market.
The Bottom Line
While the rebound in the pharma sector is currently being driven by pricing and new launches rather than volume, it is clear that the brokerage firm is giving preference to back companies with strong pipelines, portfolios, and the ability to capture emerging opportunities.
Disclaimer: This report contains independent market analysis and specific stock ratings from a third-party brokerage. These insights are provided for informational purposes and do not constitute a direct offer, solicitation, or personal investment advice. Investors are advised that equity investments, particularly in the pharmaceutical sector, carry inherent market and regulatory risks; please consult a SEBI-registered investment advisor before making any financial decisions based on these projections.
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