New Delhi: India’s pharmaceutical sector performed exceptionally well in September 2026, recording the highest monthly growth in the last three years. According to a report released on Thursday, the Indian pharmaceutical market experienced an annual growth rate of 17.1 percent during this period, with total sales reaching approximately ₹253 billion. Meanwhile, drug sales volumes increased by 5.4 percent.
According to a report by Equirus Securities, the market growth rate in September was significantly better than the 13.1 percent growth in August 2026, compared to only 6.6 percent in September 2025. This indicates a significant improvement in demand in the Indian pharmaceutical market.
Pharma market continues to grow in the second quarter
The pharma market also performed strongly in the second quarter of FY 2027. During the July-September quarter, the Indian pharmaceutical market (IPM) recorded sales of ₹746.1 billion, a 14.7 percent increase over the same period last year.
Comparatively, the market growth rate was 7.7 percent in the second quarter of FY 2026, while it was 13.9 percent in the first quarter of FY 2027.
According to the report, the market growth rate on a moving annual total (MAT) basis increased to 13.2 percent in September. It was 12.3 percent in August 2026 and 7.9 percent in September 2025.
### Increasing share of drug volume in pharmaceutical sales
Drug sales volume is now becoming the largest contributor to pharmaceutical market growth. This shift indicates that market growth is not solely dependent on rising drug prices, but rather on improving actual demand.
The report cites factors such as improved disease detection, increased emphasis on preventive healthcare, stricter compliance with regulatory norms, and the rising incidence of lifestyle-related chronic diseases as the reasons behind this trend.
Demand for Chronic Disease Medicines Strongest
Looking at the performance of the therapy segment, drugs used to treat chronic diseases grew by 16.8 percent on a MAT basis. Meanwhile, drugs for short-term treatment recorded a growth rate of 10.9 percent.
According to the report, chronic therapy continues to be the mainstay of market growth. However, the improvement in acute therapy suggests that market growth is no longer limited to a select few categories.
Sales of Vitamins and Diabetes Medicines Surge
Eight of the top 10 therapy segments recorded growth above the mid-teens level in September. Sales of vitamins, minerals, and nutritional products (VMN) grew 22.2 percent, while anti-diabetic drugs grew 21.2 percent and cardiovascular drugs grew 20.4 percent.
Several categories outside the top 10 segments also saw strong performance. Sales of oncology drugs increased 29.4 percent in September. This category grew 27.5 percent for the entire quarter.
Similarly, vaccine sales increased 20 percent and urology drugs 19.3 percent during the quarter.
Focus on the Respiratory and Anti-Infective Segments
According to the report, improved sales of both chronic and acute drugs have boosted the pharmaceutical market’s growth potential. However, fluctuations in demand for anti-infective drugs due to seasonal factors will be important to monitor.
Overall, the September data indicates strong demand and broad-based recovery in the Indian pharma market.