Pharma stocks on a roll: Symbiotec Pharmalab, Windlas Biotech, Sai Life Sciences, Alembic Pharmaceuticals and Fermation Biotech were up in the range of 9-20% on Friday.

In the past two weeks, Nifty Pharma index rallied 10%, in line with the Nifty 50.

Deepak Korgaonkar Mumbai

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Nifty Pharma index movement

Shares of pharmaceutical companies were in demand, with the Nifty Pharma index gaining 1 per cent and hitting a new high of 27,197.25 on the National Stock Exchange (NSE) in Friday’s intraday deals on strong earnings. In the past two weeks, the Nifty Pharma index rallied 10 per cent.

Aurobindo Pharma, Divi’s Laboratories, Glenmark Pharmaceuticals, Symbiotec Pharmalab and Sail Life Sciences hit new all-time highs on the NSE in intraday trade.

Shares of Symbiotec Pharmalab zoomed 20 per cent, followed by Windlas Biotech (15 per cent), Sai Life Sciences (13 per cent), Alembic Pharmaceuticals (10 per cent) and Fermation Biotech (9 per cent). Sun Pharmaceutical Industries, Vijaya Diagnostic Centre, AstraZeneca Pharma India and Corona Remedies rallied up to 8 per cent.

What’s driving pharma stocks?

For Q2FY27, Sail Life Sciences reported a healthy performance, with revenue growth of 23 per cent year-on-year (YoY) to ₹659 crore. The performance was broad-based, with both CRO and CDMO delivering healthy growth, while earnings before interest, tax, depreciation and amortization (EBITDA) margins stood at 28 per cent. Profit after tax (PAT) jumped 17 per cent YoY to ₹98 crore.

The management said it continues to expect a stronger second half, supported by the progression of the development and commercial pipeline and the ramp-up of new capacity. The company’s capacity and capability expansion programme remains on track with a total of ₹621 crore invested in H1FY27, it added.

“We see growing traction with global pharmaceutical companies, increasing adoption of our integrated outsourcing model, and continued progress in building the capacity and capabilities required to support customers over the long term. Importantly, we are seeing customer engagements evolve from individual projects into larger, more strategic relationships spanning discovery, development and manufacturing,” the management said.

Symbiotec Pharmalab's Q2FY27 revenue grew 43 per cent YoY to ₹280 crore, as the company received milestone-based revenue of ₹53 crore in Complex Injectables, while the API Business grew 16 per cent YoY to ₹227 crore. EBITDA for the quarter grew 82 per cent YoY to ₹91.5 crore, a 697-bps improvement in margins to 32.7 per cent mainly due to gross profit margins (GPM's) which improved by 741 bps to 71.6 per cent due to milestone income. PAT for the quarter stood at ₹51.7 crore.

During the quarter, the company received milestone income under the licensing agreement for the distribution of two DCV products in the US, with another tranche expected in the coming quarters. Base API margins remained firm at 31 per cent. ICICI Securities remains positive on the company’s outlook, with revenues from ₹1,000 crore of capex invested in new businesses expected to commence over the next 6–12 months. In Biotech – CDMO Services, management has multiple take-or-pay agreements, with term sheets signed. Commercial supplies of two DCV injectable products in the US are expected to commence next year, the brokerage firm said.

Meanwhile, Aurobindo Pharma has been one of the biggest beneficiaries of INR depreciation over the last 12–15 months and has seen a sharp improvement in margins. Nevertheless, analysts at Equirus Securities expect EBITDA to grow at a 12 per cent CAGR over the next three years, supported by a) Pen-G scale-up (supported by MIP), b) 2–3 biosimilar launches over the next 18–24 months, c) a full year of Lannett integration benefits and d) biologics CMO contributions, the brokerage firm said. However, the sharp 30 per cent run-up over the last six months broadly prices in near- to mid-term catalysts and leaves no room for error, analysts said.

Further, Alembic Pharma delivered a strong earnings outperformance, with revenue/EBITDA/PAT exceeding our estimates by 10 per cent/35 per cent/41 per cent in Q2FY27, fueled by robust growth in the US formulations and API, analysts at Motilal Oswal Financial Services.

US sales surpassed the $100 million quarterly mark for the first time, supported by select niche product launches and healthy growth in the underlying base portfolio. The US branded business is gaining initial traction, contributing 3 per cent of US revenue in Q2FY27. The company is strengthening its commercial platform through physician engagement and broadening market access, the brokerage firm said in result update.

Analysts upgraded FY27/FY28 earnings estimates by 13.9 per cent/5.8 per cent, factoring in the stronger US performance and improved growth prospects in chronic therapies within the DF segment. The brokerage firm values Alembic Pharma at 17x 12M forward earnings to arrive at a target price of ₹990.

“We expect Alembic Pharma to deliver a healthy 29 per cent earnings CAGR over FY26-28, driven by niche product launches and the scale-up of existing products across the US and India businesses. However, since the current valuations offer limited upside, we reiterate our Neutral rating on the stock,” analysts said.Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.

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First Published: Nov 06 2026 | 3:15 PM IST