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IPM pulse—a fine November

IPM reported a fine 8.6% yoy growth in Nov 2025, on a high base of 10.7% yoy growth in Nov 2024. IPM growth in MAT Nov 2025 stood at 8.2% yoy. We highlight that while pricing contributed to the bulk of the IPM growth in MAT Nov 2025, contribution from volumes stood at 160 bps as against 30 bps in MAT Nov 2024. Growth was healthy across all key therapies, except for anti-infectives. Led by continued benefits from pricing and new launches, along with acquisitions and in-licensing deals, we bake in 8-16% yoy domestic sales growth in FY2026E for our coverage. Sun, Lupin, Cipla and Emcure are our preferred picks in the space.

Intas and Glenmark growth leaders; Mankind’s recovery stays elusive

IPM grew by 8.6% yoy in Nov 2025 (on a base of 10.7% yoy in Nov 2024). Chronic therapies grew by 14% yoy and acute therapies by 5% yoy in Nov 2025. The bulk of the IPM growth in Nov 2025 was driven by therapies such as oncology, cardiac, vaccines, anti-diabetic, urology, neuro and gynae. In Nov 2025, revenues of MNC companies grew 13.5% yoy, much higher than 7.6% yoy sales growth for domestic companies. Including unlisted companies, growth leaders in Nov 2025 were Intas, Glenmark, Lupin, Ajanta, GSK, Pfizer, Sun, Dr Reddy’s, Zydus, Sanofi, JB and Ipca, which posted 9-15% yoy sales growth. On the other hand, key underperformers during the month were Indoco, Alembic, Jagsonpal, FDC, Micro Labs, Mankind, Aristo, Alkem, Abbott, Macleods, USV and Emcure, which posted sales growth of (6)-6% yoy.

Market share trends: Cipla and GSK top gainers; FDC and Abbott top losers

IPM growth of 8.2% yoy in MAT Nov 2025 (on a base of 7.5% yoy) was led by 420 bps yoy contribution from higher pricing and 240 bps yoy contribution from new launches. Volume growth contributed 160 bps to IPM growth in MAT Nov 2025, compared to 120-130 bps contribution to MAT growth in the months of Jul-Sep 2025. Among the top 25 companies, Cipla, GSK, Aristo, Sun, Glenmark, Pfizer and Dr Reddy’s have gained maximum share over the past six months. On the other hand, FDC, Abbott, Mankind, Torrent, USV, Emcure, JB, Ipca and Eris have lost maximum share in the past six months. Mounjaro remained the largest brand by sales in Nov 2025, reporting sales of Rs1.3 bn, compared to Rs1.3 bn in Oct 2025 and Rs1.1 bn in Sep 2025.

Risk of further acceleration in generics adoption not being adequately baked in

We reiterate that one of the key reasons for muted branded IPM volume growth is continued traction in the alternate channels. As highlighted in our report (link), factoring in the volume impact from these channels, we estimate a 120-160 bps annual dent on branded IPM growth, at least until FY2028E. With Jan Aushadhi’s rapid expansion plan (~16k stores now), there is a risk of this hit on IPM swelling further. We highlight that current domestic valuations imply the ongoing steady decline in the share of branded generics will continue and do not factor in any further growth deceleration in the next few years. If the share of branded slips further, there is scope for further derating. Yet, a forced change might be ineffective unless the quality conundrum is addressed.

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