Glenmark & Neuland Lead Pharma Sales Growth in Q2 FY26 | Pharma Sector Performance Update

The Indian pharmaceutical industry posted a strong performance in the second quarter of FY26, supported by improving demand trends, stable raw material availability, and strengthening export order books.

Among all listed pharma companies, Glenmark Pharma and Neuland Laboratories emerged as the most prominent growth leaders, delivering outstanding YoY revenue expansions of 96% and 76%, respectively. The strong performance reflects accelerated demand recovery, new product launches, and increased traction in high-value APIs and speciality medicines.

Top Performers in Q2 FY26 Pharmaceutical Sales Growth

What Drove Glenmark & Neuland’s Exceptional Growth?

Glenmark Pharma – Sector Leader with 96% YoY Growth

Glenmark delivered the strongest sales growth of Q2 FY26, driven by:

• Expansion in chronic therapies, respiratory and dermatology verticals
  
  
• Strong revenue traction in the US and EU markets
  
  
• Improved profitability from cost rationalisation and product mix
  
  
• Strong performance of innovative speciality products across global markets
  
  

The company continues to focus on high-potential therapy areas and expects sustained double-digit growth in the coming quarters.

Neuland Labs – 76% YoY growth backed by CDMO and API demand

Neuland Laboratories recorded robust performance due to:

• Significant demand increase in complex APIs and peptides
  
  
• Strong CDMO project pipeline
  
  
• Higher capacity utilisation and operational efficiency
  
  
• Increased traction from US & European pharmaceutical clients
  
  

Neuland’s business visibility continues to improve as outsourcing demand from global pharma strengthens.

Sector-Wide Trends Supporting Growth

The pharma sector rebound is supported by multiple positive indicators:

• Stable pricing environment in the US generics market after several challenging quarters
  
  
• Improving export demand, especially for APIs and CRAMS services
  
  
• Easing input cost pressure and logistics costs
  
  
• Healthy vaccination and speciality product demand
  
  
• Expansion of government healthcare spending and insurance penetration
  
  

Industry Outlook for FY26

Based on management commentary and market patterns, analysts expect:

• Sustained double-digit revenue growth for the sector
  
  
• Margin improvement led by better mix and cost optimisation
  
  
• Higher investments into biologics, complex generics, peptides and oncology
  
  
• Strong growth visibility in the CDMO/CRAMS business
  
  

The pharma sector remains positioned as one of the most resilient growth engines for FY26 and beyond.

Conclusion

Q2 FY26 marked a strong recovery phase for Indian pharmaceutical companies, with Glenmark and Neuland leading the industry with impressive YoY revenue growth. Broader sector improvements and better product pipelines point to continued momentum in upcoming quarters. With global outsourcing demand rising and domestic consumption strengthening, the pharma sector is expected to maintain an optimistic growth trajectory through FY26.