Indian pharmaceutical companies plan $ 45,000 CR Capex in the 26th fiscal year, says ICRA

Indian pharmaceutical companies are expected to make capital spending between 42000 and 45,000 rupees in the fiscal year 2016, including about 25,000 rupees in inorganic investments, according to ICRA classification agency.

You will likely see the sample group of companies rising modestly, with a total of OPBITDA at 1.1-1.2X by March 2026, compared to 0.8xa in the previous year. He said that liquidity is expected to remain strong, supported by cash reserves and liquid investments.

The ICRA sample revenue is expected to grow by 7-9 % in the 2016 fiscal year, with the help of 8-10 % growth in the local market and 10-12 % growth in Europe. It is expected that the growth in the American market is expected to 3-5 %, compared to about 10 % in the 2015 fiscal year. The agency said that the operating profit margins are expected to range between 24 and 25 % in the 2016 fiscal year, in line with 24.6 % in the 2015 fiscal year.

“The local market is still a major growth engine for Indian pharmaceutical companies. It is expected to support sales power, improve productivity for medical representatives, distribute the deeper sample, distribute new products to the expansion of Q1. FY2026, after 11.6 % grow in FY2025), driven by market share gains in Chronic treatments, new products, and regular price raising, despite the growth of the size of the branded caravans, is partially due to increased performance.

The drug sector in India, which is worth about $ 50 billion, provides more than 20 % of global public drugs and the United States and Europe return as its largest market. With exports representing more than half of the revenues, Indian companies traditionally relied on these geographical areas even with a steady rise in domestic demand. CAPEX is planned from 42,000 and 45,000 rupees in the fiscal year 2016 higher than modern averages and reflects the intention of industry to expand specialization and complex drugs portfolio, with support from policy measures such as commodity tax exemptions and services on basic drugs and the production of the associated government (PEI).

ICRA highlighted the risks in the American market, noting price erosion, lunalidomide’s decrease, and organizational audit by the US Food and Drug Administration, including warning messages and import alerts. He has indicated that the recent definitions of the United States on Indian imports across the sectors currently do not cover medicines, although future inclusion is still a danger.

In Europe, revenue of 10-12 % is expected to grow in the 2016 fiscal year, after an increase of 18.9 % in the 2015 fiscal year, with the support of launch operations, respiratory products, and nicotine replacement treatments. The agency said that the spending and development spending is expected to remain 6-7 % of revenues, as companies focus on complex molecules and specialized products.

ICRA maintained a straight view of the sector, with support from demand, public budgets, liquidity, and margins.