The pharma sector has been one of the best performing sectors on Dalal Street over the past one year. It has withstood the broad selling pressure of foreign institutional investors (FIIs).
The BSE Healthcare Index closed at 46,806 on Friday, and over the past one year it has gained nearly 10%. In contrast, the Sensex closed at 74,775 on Friday, and has lost nearly 8.4% over the past one year.
The key factors that have led to the popularity of pharma shares among investors – sales growth of pharma exporters has been fairly strong despite the Middle East crisis and the tariff policy of US government.
That’s because Indian generic exporters have expanded their presence in Europe, Asia and Africa, and also entered new product segments.
Also, in the local market, pharma sales grew 8.8% to Rs 2.46 lakh crore during FY26, as per media reports.
Identifying fastest growing pharma companies
To help readers identify the fastest growing pharma companies for their watchlist, we first shortlisted companies with a market capitalisation of more than Rs 10,000 crore.
We then looked at the sales growth of these pharma companies between FY23 and FY26, and found the five fastest growing players.
Our study identified 5 pharma companies –
1) OneSource Speciality Pharma
2) Rubicon Research
3) Viyash Scientific
4) AstraZeneca Pharma India
5) Natco Pharma
Surging sales growth between FY23 and FY26
| Pharma company | Consolidated sales growth – FY26 y-o-y basis (% change) | Consolidated sales between FY23 and FY26 (% CAGR) |
| OneSource Speciality Pharma | -1.5% | 232.4% |
| Rubicon Research | 36.5% | 64.6% |
| Viyash Scientific | 13.8% | 34.0% |
| AstraZeneca Pharma India | 32.6% | 31.4% |
| Natco Pharma | -8.0% | 14.6% |
fLet’s dig into these 5 pharma companies and understand what’s driving their growth over the past few years.
#1 OneSource Speciality Pharma Limited – Semaglutide is the key growth driver, going forward
The Navi Mumbai-based company is a contract development and manufacturing organization (CDMO) – it focuses on the development and manufacturing of complex pharmaceutical products including biologics, drug-device combinations, sterile injectables, and oral technologies (soft gelatine capsules). It has five state-of-the-art manufacturing facilities.
The company’s consolidated revenue from operations were Rs 1,421.5 crore during FY26, a decline of nearly 1.5% y-o-y. In its investor presentation for FY26, the company has highlighted a softer second half (of the financial year) impacted by delayed Semaglutide approvals in Canada. Semaglutide had gone off patent in several countries late in the March 2026 quarter and generic versions are being launched across the globe. The company has highlighted it has since received Semaglutide approval in Canada.
Semaglutide is widely prescribed for managing type-2 diabetes, promoting chronic weight loss in obesity, and reducing cardiovascular risks. The delays in approvals resulted in the company’s net loss of Rs 73.8 crore during FY26 as against a net loss of Rs 17.2 crore a year earlier.
The company had launched Semaglutide in the Indian market in the March 2026 quarter, and the growth in India, Canada and other markets will be reflected over the next few quarters.
The company has shown strong compounded annual growth of nearly 232.4% in its consolidated revenues between FY23 and FY26. Its FY23 consolidated revenues were Rs 38.7 crore.
Over the past few years, the company has benefited from expanded manufacturing for softgel capsules – they are primarily used for fat-soluble vitamins (A, D, E, K), Omega-3 oil, and medications that require liquid suspension for faster release in the stomach. Also, the company has expanded its client base of global pharma companies that it is working for, with respect for drug research and production, amongst other aspects.
The company had a consolidated net loss from continuing operations of Rs 415.6 crore during FY23.
#2 Rubicon Research – Complex / speciality products driving growth
The Mumbai-based company offers complex generics and speciality products across different product segments including pain management, skeletal muscle relaxants, immunosuppressant and CNS (central nervous system).
Its consolidated revenue from operations grew 36.5% y-o-y to Rs 1,753.9 crore during FY26, and the company benefited from its specialty medications for pain management and CNS.
Also, the company has shown strong compounded annual growth of nearly 64.6% in its consolidated revenues between FY23 and FY26. Its FY23 consolidated revenues from operations were Rs 393.5 crore.
The company had a consolidated net loss of Rs 16.9 crore during FY23.
#3 Viyash Scientific – Booming business for medicines and vaccines for pets in Europe
The Hyderabad-based company has a portfolio of formulations and APIs for human and veterinary use, serving customers in more than 100 countries.
Its consolidated revenue from operations grew 13.8% y-o-y to Rs 3,420.3 crore during FY26, and the company benefited from formulation sales in Europe that grew 19% during this period. In Europe, the company has benefited from its partnership with VetViva Richter for canine heart therapy.
The company had a net profit growth of nearly 1300% y-o-y to Rs 224.6 crore during FY26. In FY25 there was exceptional expense of Rs 81.5 crore related to merger of Viyash Life Sciences Private Limited (VLPL) with Sequent Scientific Limited (SSL) in November 2025.
Also, between FY23 and FY26, the company’s consolidated revenue from operations grew at a compounded annual growth rate of nearly 34%. Its consolidated revenue from operations were Rs 1,420.9 crore during FY23.
The company’s growth over the past few years in the key European market has been via distributing vaccines for a leading European company in Benelux.
Also, the company in its operations offers over 1,000 products across 12 dosage forms including tablets, injectables, suspensions and topicals related to livestock, poultry, and companion animals, and they have witnessed strong demand in overseas and Indian market.
The company had a consolidated net loss of Rs 122 crore for FY23.
#4 AstraZeneca Pharma India – Oncology and biopharmaceuticals are key growth drivers
The UK-headquartered MNC pharma company with its Indian operations focused across product segments including oncology, cardiovascular, renal and metabolism, and respiratory and rare diseases.
Its revenue from operations was Rs 2,275.5 crore during FY26, a growth of 32.6% y-o-y and the company has highlighted strong growth in segments like oncology (treatment of cancer) and biopharmaceutical (complex medical drug). The company’s net profit grew 62.6% y-o-y to Rs 187.5 crore during FY26, a compounded growth of 23.6% since FY23.
Also, between FY23 and FY26, the company’s consolidated revenue from operations grew at a compounded annual growth rate of nearly 31.4%. Its consolidated revenue from operations were Rs 1,003 crore during FY23.
The company’s growth over the past few years in the Indian market has been supported by its medications across oncology, biopharmaceutical and rare diseases.
#5 Natco Pharma – Growing sales of API for complex products, and recent launch of Semaglutide
The Hyderabad-based company develops, manufactures and distributes generic and branded pharmaceuticals, specialty pharmaceuticals, active pharma ingredients (API)and crop protection products. The company also has a presence in Oncology (treatment of cancer) segment.
Its revenue from operations was Rs 4,078.3 crore during FY26, a fall of 8% y-o-y and the company has highlighted that its sales in the key pharmaceutical division declined nearly 10% y-o-y to Rs 3,940 crore in the year under review.
In FY25, the company had benefited from strong sales of generic Revlimid,a medication for treating blood cancer in the US market. However, with several other pharma players entering this product segment in the USA, it is understood the company has had to face pricing pressure in this product segment and the resulting decline in sales in its pharmaceutical division in FY26.
However, between FY23 and FY26, the company’s consolidated revenue from operations grew at a compounded annual growth rate of nearly 14.6%. Its consolidated revenue from operations were Rs 2,707 crore during FY23.
Over the past few years, the company had benefited from the generic version of Revlimid along with growing sales of API (active pharmaceutical ingredients) focusing on high-value molecules for oncology, central nervous system, and cardiovascular segments.
Its consolidated net profit of Rs 1,418.5 crore for FY26, has grown at a compounded growth of 25.6% since FY23.
The company has launched Semaglutide injection late in the March 2026 quarter and it will provide growth momentum for the company for the next few quarters.
Growth outlook – Will the growth momentum continue?
Semaglutide has gone off-patent in India, Canada and other markets overseas, and it will provide a strong growth momentum for OneSource Speciality Pharma and Natco Pharma.
Meanwhile, for Viyash Scientific, growth momentum will continue from the expansion in sales of vaccinations and wide range of medications for pets and animals across the globe. Investors will be keeping a close eye on new product launches of the company in different segments for pets and animals.
For Rubicon Research, its complex / specialty products in different segments like pain management, CNS and nasal spray will continue to drive growth, going forward. Investors will also be keeping a close eye on new product launches in different segments.
And for AstraZeneca Pharma India a key focus for investors will be the introduction of new medications from its UK-based parent’s portfolio in the local market over the next few quarters.
Return on Equity – which company uses capital most efficiently
OneSource Speciality Pharma had a consolidated Return on Equity (RoE) of -1.09%, according to Screener.in, while for Rubicon Research it was 28.9% and for Viyash Scientific it had a consolidated RoE of 11%.
Natco Pharma had a Return on Equity (RoE) of 28%, while for AstraZeneca Pharma India it was 23.3%.
| Pharma company | Return on Equity (RoE) |
| OneSource Speciality Pharma | -1.09% |
| Rubicon Research | 28.9% |
| Viyash Scientific | 11.0% |
| Natco Pharma | 28.0% |
| AstraZeneca Pharma India | 23.3% |
Valuations of fastest growing pharma companies
We valued these fast growing pharma companies on two valuation paramaters – P/E and EV / EBITDA (refer table below).
Rubicon Research ended 4.6% higher at Rs 1,009.9 on Friday. The stock trades at a consolidated P/E of 98.7.
For Viyash Scientific, it gained 1.9 % to Rs 255 on Friday. The stock trades at a consolidated P/E of 56.7.
AstraZeneca Pharma India ended broadly flat at Rs 8,671.5 on Friday, and the stock trades at a P/E of 113.
Meanwhile Natco Pharma declined 13.5% to Rs 1196 on Friday, with investors disappointed in the fall of pharmaceutical sales during FY26. The stock trades at a consolidated P/E of 13.7.
And OneSource Speciality Pharma was broadly flat at Rs 1,777 on Friday.
Fast growth and high valuations – Are investors suitably valuing fast growing pharma companies?
| Pharma company | Consolidated P/E | EV/EBITDA |
| OneSource Speciality Pharma | NA | 68.9 times |
| Rubicon Research | 98.7 | 6.1 times |
| Viyash Scientific | 56.7 | 16.7 times |
| Natco Pharma | 13.7 | 13.0 times |
| AstraZeneca Pharma India | 113.0 | 75.6 times |
Readers can put these 5 pharma stocks on their watchlist of stocks for 2026, and see if the expectations of strong sales growth over the next few years is realised.
DIsclaimer:
Amriteshwar Mathur is a financial journalist with over 20 years of experience.
The writer and his family have no shareholding in any of the stocks mentioned in the article.
Disclaimer: The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
