India Pharma and CRDMO Domestic + RoW underpin growth; US ex-gRevlimid stable; FX tailwinds persist; CRDMO remains lumpy

Research evidence excerpt

India Pharma and CRDMO Domestic + RoW underpin growth; US ex-gRevlimid stable; FX tailwinds persist; CRDMO remains lumpy

J P M O R G A N Asia Pacific Equity Research

03 July 2026

India Pharma and CRDMO

Domestic + RoW underpin growth; US ex-gRevlimid

stable; FX tailwinds persist; CRDMO remains lumpy

We expect Indian pharma companies to deliver 13%/1%/(10%) YoY growth in Pharmaceuticals & Healthcare

revenue/EBITDA/PAT in 1QFY27, with EBITDA margins down 270 bps YoY but Services

up ~150 bps QoQ. Ex‑gRevlimid, we forecast 17%/12%/7% YoY growth, led by Bansi Desai, CFA AC

double‑digit expansion in India and ex‑US export markets, supported by currency (91 22) 6157 3581

tailwinds (Fig 2). bansi.desai@jpmorgan.com

Amlan Jyoti Das

We believe Middle East–related input and freight cost inflation is contained, (91 22) 6157 3574

amlan.das@jpmchase.com

cushioned by inventory buffers and largely offset by FX tailwinds. Across our J.P. Morgan India Private Limited, J.P. Morgan

coverage, we model 12% YoY domestic revenue growth (IPM average: 12% Tower, Santacruz(E), Mumbai - 400098, SEBI

QTD). We expect US revenues to decline 9% YoY; however, core US revenues Registration: INH000001873, (91-22) 6157-3000.

(ex‑gRevlimid) should rise 5% YoY in constant currency and remain broadly flat

QoQ. RoW markets should deliver strong double‑digit growth on new launches,

higher penetration, and favorable FX. For most companies, we expect low‑to‑mid

teens India growth, while US revenues should be largely stable QoQ in constant

currency. Top picks: Cipla, Torrent Pharma.

For CRDMOs, we expect revenue/EBITDA/PAT to decline 2%/7%/2% YoY. Blue

Jet may improve versus 4Q on recovering bempedoic acid sales, while Anthem and

Cohance are likely to remain soft due to shipment pushouts. Top picks: Divi’s Labs,