India's pharmaceutical market is demonstrating a more balanced growth profile, with volume growth contributing 3.2 percentage points to the Indian Pharmaceutical Market's (IPM's) 10.7% moving annual total (MAT) growth in May 2026, according to Equirus Securities analysis citing IQVIA data. This represents a significant improvement from just 0.8 percentage points a year earlier. Price growth contributed approximately 4.5 percentage points, while new product introductions added around 3 percentage points. The Indian Pharmaceutical Market recorded year-on-year growth of 10.3% in April and 10.9% in May, with monthly sales exceeding ₹21,700 crore in both months, as reported by market research firm Pharmarack.
The strengthening volume trend has coincided with robust growth in chronic therapies, with anti-diabetic therapies growing 16.2% in April and 16.8% in May, while cardiac therapies expanded 14.3% and 13.9% respectively, according to Pharmarack data. Respiratory, neuro/CNS, anti-neoplastics and urology therapies also posted double-digit or near double-digit growth. Several large companies including Lupin, Sun Pharma, Ipca Laboratories and Torrent Pharmaceuticals reported volume growth above the industry average, indicating stronger prescription traction in key therapies, as highlighted by Equirus Securities.
A major contributor to recent market expansion has been the rapid growth of GLP-1 therapies following the entry of generic semaglutide products after patent expiry in India. However, the market has now hit an early speed bump with inventory-led losses emerging as a significant concern. According to The Times of India, the excess stock value in trade channels is estimated at around ₹100 crore, with stockists and wholesalers currently holding 50-60 days of inventory - well above the normal 30-45 days. The GLP-1 agonist market expanded to ₹1,906 crore on a moving annual total basis in May from ₹565 crore a year earlier, driven by semaglutide and tirzepatide. The strong growth witnessed in the ₹2,000-crore obesity therapy market in April lost steam in May, with month-on-month value growth slowing to 6% and unit growth at 12%.
The market's growth has remained geographically broad-based, with South India emerging as the fastest-growing region in May, while both southern and western regions recorded strong double-digit growth in April, as reported by Pharmarack. Innovation continues to support expansion, with more than 5,500 new stock-keeping units contributing around ₹5,187 crore on a moving annual total basis in April. "All three growth drivers — volume, price and new products — have remained positive for the last six months," said Sheetal Sapale, Vice-President (Commercial), Pharmarack, noting this sustained momentum reflects a healthy and broad-based uptick across the Indian pharma market.
