New Delhi, Apr 15 (BNP): The healthcare sector is expected to report modest revenue growth in the fourth quarter, even as profit margins come under pressure due to challenges in the US generics market, according to a report by Systematix.
The brokerage noted that while demand trends remain steady, overall earnings growth is likely to be limited. A key concern is the so-called “generics cliff” in the US, which is expected to weigh on pricing power and profitability for Indian pharmaceutical exporters.
Despite these pressures, the sector continues to benefit from stable domestic demand and ongoing opportunities in select export markets. However, margin compression is likely to remain a near-term challenge for several companies.
Analysts suggest that while revenue growth may remain moderate, sustained performance will depend on how companies navigate pricing pressures and diversify their product portfolios in global markets.
