Sector Alpha

Track where the smart money flows in Indian equities

DashboardWeekly UpdateSector Deep DivesUploadPipelinePE CyclesBrainAboutHow We Research

Data updated weekly. Not financial advice.

sectoralpha · sector story
Home›Sectors›Pharma - API

Pharma - API — sector analysis & key numbers

Pharma - API is turning around off a trough: 8 of 14 constituents are in price uptrends, and aggregate profit fell 28% in the latest year.

14 companies₹40.5K Cr market value44.2 relative strengthleaders rotationtailwind
By Sector Alpha Research · machine-compiled from Screener.in data · Updated 1 July 2026 · Not investment advice
The 30-second answer

Pharma - API groups 14 listed companies worth ₹40,462 Cr combined, and 8 of 14 are in confirmed price uptrends. Aggregate profit moved −40.7% year-on-year in the latest reported quarter. The sector trades at an aggregate P/E of 29.6×, at the 67th percentile of its own history.

Data as of 1 July 2026 · every number traces to its Screener source column · not investment advice.

Key numbers
Companies
14
Total market cap
₹40,462 Cr
Relative strength
44.2
RRG quadrant
leaders
Weeks in streak
12
In Stage-2 uptrend
8 of 14
Above 200-DMA
11 of 14
Beating NIFTY 500
11 of 14
Latest-quarter revenue
₹3,171 Cr
Latest-quarter profit
₹318 Cr
Aggregate P/E
29.6×
Valuation percentile
67th of its own history
Sector wind
tailwind
Data as of
1 July 2026
The verdict

The research read on Pharma - API: turning around off a trough.lifecycle_bucket

The API sector is caught between a multi-year structural tailwind (China+1 sourcing and ₹42,000 Cr PLI capex) and a severe near-term margin crash (-28.3% YoY ΣPAT drop driven by API pricing/RM costs). Over a 3-year window, earnings and multiple moved in tandem (mixed driver), leaving the sector fairly priced today (trailing PE 76th percentile normalizes to 62nd percentile at mid-cycle margins). While social sentiment is high, it is a shared super-group signal. Wait for the margin trough to confirm before treating this as a fresh turn.synthesis

What would change this view: Aggregate margins plunge further below mid-cycle levels, indicating the API price crash is structural (e.g. permanent Chinese dumping) rather than a cyclical trough.would_change_my_mind

A powerful structural import-substitution / China+1 story funded by ₹42,000 Cr of PLI capex, but earnings are at a cyclical margin trough on an API price crash and a US-tariff cloud — study the structural recovery, not yet the cycle.one_line_thesis

tailwind
  • ⚠ΣPAT +37.3% over ~3y · sector_cycle_deterministic.curve_move_driver.citations
  • ⚠PE +44.4% over 12q · sector_cycle_deterministic.curve_move_driver.citations
  • ✓Sector ΣPAT -28.3% YoY · sector_why_traces.traces
  • ✓net_margin -3.47 pp · sector_why_traces.traces.decomposition
  • ⚠aggregate OPM 14.3% at 42nd %ile · sector_cycle_deterministic.verdict.citations
  • ⚠trailing PE 76th %ile normalizes to 62nd %ile · sector_cycle_deterministic.verdict.citations
  • ⚠Mixed move driver · sector_cycle_deterministic.verdict.citations
  • ⚠FERMENTA lifted ΣPAT · sector_cycle_deterministic.top_contributors.top

Research view from 2026-06-27

⚠ What the companies are telling us

Across the 4 largest constituents with research timelines, 4 carried trackable guidance: 7 beats, 1 met, 11 misses against what management said.guidance_pairs

4 names with trackable guidance · 7 beat · 1 met · 11 missed

Research view from 2026-06-27

How the sector is moving

8 of 14 constituents are in Stage-2 price uptrends, 11 trade above their 200-day averages, and 11 are beating the NIFTY 500 on relative strength.stageabove_dma200rs_mansfield

Over the trailing ~20 weeks, the share of constituents above the 200-day line moved from 21% to 79% — participation is widening.breadth_series

Sector relative strength stands at 44.2, in the leaders quadrant of the rotation map, with relative strength rising over a 12-week streak.current_rsquadrant

Recent stage changes: FERMENTA (stage 4→1), GUJTHEM (stage 4→2), INNOVACAP (stage 4→2), JAGSNPHARM (stage 1→2).stage

8 / 14
In Stage-2 uptrend
11 / 14
Above 200-day avg
11 / 14
Beating NIFTY 500
RRG: leadersRS 44.2relative strength rising12-week streak
Breadth trend — share of constituents participating% (trailing ~20 weeks)
020406080200-DMAvs NIFTY2026-02-092026-03-302026-05-182026-06-22
Data: Breadth trend
Period% above 200-DMA (%)% beating NIFTY (%)
Feb 2621.414.3
Feb 2628.628.6
Feb 2628.628.6
Mar 2628.628.6
Mar 2615.423.1
Mar 2623.123.1
Mar 2615.415.4
Mar 2640.040.0
Apr 2637.537.5
Apr 2635.728.6
Apr 2635.742.9
Apr 2657.135.7
May 2664.357.1
May 2657.157.1
May 2650.057.1
May 2664.364.3
Jun 2671.464.3
Jun 2671.478.6
Jun 2671.471.4
Jun 2678.678.6

Data as of 2026-07-01

The performers

Top performers by 1-year price return: Senores Pharmaceuticals Ltd (+131.7%), Ind-Swift Laboratories Ltd (+76%), Orchid Pharma Ltd (+28.9%), Beta Drugs Ltd (+25.3%), Innova Captab Ltd (+13.2%).price

by 1-year return
Sector avg
Indexed price (base 100, ~52 weeks)index
Data: Indexed price (base 100, ~52 weeks) — default top-5
PeriodSENORES (index)INDSWFTLAB (index)ORCHPHARMA (index)BETA (index)INNOVACAP (index)Sector avg (index)
Jul 25100100100100100100
Jul 2510210210295.5103101
Jul 2510910098.997.1103101
Aug 2510910210898.310199.7
Aug 2510794.810598.210597.0
Aug 2511096.910410910496.7
Aug 2511893.6108111104100
Aug 2511391.810210610396.4
Sep 2511897.599.210810498.8
Sep 2511310198.910498.2100
Sep 2511799.511010498.4101
Sep 2511095.510010396.596.8
Oct 2511992.910410497.199.4
Oct 2512010010498.395.698.8
Oct 2511796.910110292.396.3
Oct 2512697.410010292.098.0
Oct 2512698.210110594.999.7
Nov 2513596.111794.987.798.4
Nov 2512899.111294.685.894.8
Nov 2513496.112194.386.892.6
Nov 2513593.211694.982.092.9
Dec 2512791.612192.780.990.8
Dec 2512993.611893.382.491.9
Dec 2513289.311086.978.790.5
Dec 2513387.510688.381.192.6
Jan 2614287.511192.582.893.7
Jan 2613386.410190.080.489.0
Jan 2612910610189.277.088.6
Jan 2613110595.885.477.583.5
Feb 2612910894.979.779.384.5
Feb 2613512694.778.480.888.6
Feb 2612813092.578.077.587.5
Feb 2613313693.060.376.587.3
Feb 2612513986.359.776.385.9
Mar 2612313170.862.477.782.7
Mar 2611913171.363.481.581.7
Mar 2612313574.162.877.681.6
Mar 2612913269.966.176.779.3
Apr 26128133––80.595.7
Apr 2613413477.8–78.794.0
Apr 2614612679.378.184.890.0
Apr 2614613178.975.982.491.1
Apr 2614713187.175.585.993.3
May 2615813297.975.110096.6
May 2617212899.272.298.095.0
May 2618212698.478.296.997.4
May 2618314511081.297.1103
Jun 2616915111883.399.1101
Jun 26211156128101108107
Jun 26215179136113109111
Jun 26208192134119108114
Jul 26215192136124111116
Quarterly revenue (8q)₹ Cr
Data: Quarterly revenue (8q) — default top-5
PeriodSENORES (₹ Cr)INDSWFTLAB (₹ Cr)ORCHPHARMA (₹ Cr)BETA (₹ Cr)INNOVACAP (₹ Cr)Sector avg (₹ Cr)
Jun 2480.033.0244–294190
Sep 2410112.0223180318192
Dec 2410312921788.0316198
Mar 2511413823794.0315214
Jun 25138153173–352202
Sep 25162153194103380204
Dec 2517115120787.0450214
Mar 2617517023894.0448244
Quarterly net profit (8q)₹ Cr
Data: Quarterly net profit (8q) — default top-5
PeriodSENORES (₹ Cr)INDSWFTLAB (₹ Cr)ORCHPHARMA (₹ Cr)BETA (₹ Cr)INNOVACAP (₹ Cr)Sector avg (₹ Cr)
Jun 2411.01.029.0–29.016.7
Sep 2413.00.027.024.035.019.0
Dec 2416.0-5.021.09.034.020.8
Mar 2518.022222.09.030.038.3
Jun 2521.09.015.0–31.018.2
Sep 2530.08.0-6.012.030.014.4
Dec 2534.010.0-13.09.042.018.1
Mar 2637.015.024.09.038.024.5
Operating margin % (8q)%
Data: Operating margin % (8q) — default top-5
PeriodSENORES (%)INDSWFTLAB (%)ORCHPHARMA (%)BETA (%)INNOVACAP (%)Sector avg (%)
Jun 2427.0-29.013.0–14.013.3
Sep 2423.0-99.014.022.016.010.0
Dec 2425.0-5.012.020.915.017.4
Mar 2517.0-7.012.018.515.014.6
Jun 2525.02.08.0–15.014.3
Sep 2531.01.0-1.020.614.014.4
Dec 2529.03.01.019.515.016.8
Mar 2627.012.011.018.815.017.1
Latest reported ROCE / ROE (single latest reading, not a trend)%
Data: Latest reported ROCE / ROE (single latest reading, not a trend) — default top-5
PeriodSENORES (%)INDSWFTLAB (%)ORCHPHARMA (%)BETA (%)INNOVACAP (%)Sector avg (%)
ROCE %15.14.72.619.215.014.4
ROE %13.43.92.118.813.715.7
10-year valuation percentile (latest)percentile
Data: 10-year valuation percentile (latest) — default top-5
PeriodSENORES (percentile)INDSWFTLAB (percentile)ORCHPHARMA (percentile)BETA (percentile)INNOVACAP (percentile)Sector avg (percentile)
10y percentile63.093.093.093.067.070.8

Interactive charts default to the five strongest performers by 1-year price return; use the rail to add or remove any constituent, globally or per chart. Non-interactive readers see the same numbers in each chart’s data table.

Data as of 2026-07-01

⚠ How they're scaling

In the latest reported quarter (2026-03), constituents together booked ₹3,171 Cr of revenue (+6.1% year-on-year) and ₹318 Cr of profit (-40.7%).revenuepat

Reporting honesty note: 13 of the constituents have reported this quarter versus 14 a year ago, so part of the year-on-year change is composition, not like-for-like growth.reporters

On the annual arc, aggregate profit fell 28% to ₹964 Cr in 2026.pat

Aggregate quarterly revenue₹ Cr
01,0002,0003,000Jun 23Jun 24Jun 25Mar 26
Data: Aggregate quarterly revenue
PeriodRevenue (₹ Cr)Reporters
Jun 232,55812
Sep 232,70213
Dec 232,69013
Mar 243,16014
Jun 242,47013
Sep 242,69114
Dec 242,77114
Mar 252,98914
Jun 252,62213
Sep 252,85214
Dec 252,99614
Mar 263,17113
Aggregate quarterly profit₹ Cr
0250500750Jun 23Jun 24Jun 25Mar 26
Data: Aggregate quarterly profit
PeriodProfit after tax (₹ Cr)
Jun 23205
Sep 23225
Dec 23249
Mar 24786
Jun 24217
Sep 24267
Dec 24290
Mar 25536
Jun 25236
Sep 25201
Dec 25254
Mar 26318
Aggregate operating margin%
13.014.015.016.0Jun 23Jun 24Jun 25Mar 26
Data: Aggregate operating margin
PeriodOPM (%)
Jun 2314.9
Sep 2315.1
Dec 2316.2
Mar 2416.1
Jun 2414.0
Sep 2415.3
Dec 2416.0
Mar 2515.5
Jun 2513.9
Sep 2513.2
Dec 2514.5
Mar 2615.6
Aggregate profit by year₹ Cr
01,0002015201920232026
Data: Aggregate profit by year
PeriodProfit after tax (₹ Cr)
2015-240
2016-212
2017-323
2018-188
2019357
2020242
2021409
2022737
2023702
20241,451
20251,345
2026964
Aggregate operating margin by year%
10.012.014.016.02015201920232026
Data: Operating margin by year
PeriodOPM (%)
201514.6
201614.9
201710.4
201810.7
201912.4
202012.9
202117.1
202215.2
202314.1
202415.6
202515.3
202614.3

Data as of 2026-06-27

The WHY behind the numbers

Sector profit moved from ₹1,345 Cr to ₹964 Cr (-28.3% year-on-year) — the decomposition attributes the larger share to the margin side (costs and pricing).pat

The aggregate P/E moved from 20.5× to 29.6× (+44.4%) while sector profits moved +37.3% — multiple and earnings moved together.pe

Participation check: the share of constituents above their 200-day average moved 27%→73% across the trailing weeks — the move is broadening.pct_above_200dma

✓Sector ΣPAT (annual YoY)−28.3%

Sector ΣPAT -28.3% YoY — dominant leg: net_margin (margin-led — confirm input-cost/pricing, not a one-off).

pat
✓Sector PE re-rating (12q)+44.4%

Sector PE +44.4% vs ΣPAT +37.3% over ~3y — multiple and earnings moved together; neither clearly led.

peprice_idxpat
✓Sector breadth trend (% above 200-DMA)+173.1%

Sector breadth WIDENING — % above 200-DMA 27→73% over the trailing weeks: broad participation corroborates a genuine sector-wide turn rather than a few-name move.

pct_above_200dmapct_outperforming

Research view from 2026-06-27

Capital cycle

Ownership: institutional (FII+DII) holdings moved +0.94 percentage points over four quarters; promoter stakes moved +0 points over two.fii_dii_delta_4qpromoter_delta_2q

Constituents spent ₹1,629 Cr on capex in the trailing twelve months (+1.1% year-on-year), with gross block growing +29.3%.capex_ttm_sum_crcapex_yoy_pct

On the deterministic capital-flow read, money is neither decisively entering nor leaving this industry.read

capital neutral
FII+DII (4q)+0.94 pp
Promoter (2q)+0.00 pp
Capex TTM₹1,629 Cr
Capex YoY+1.1%
Gross block+29.3%

Research view from 2026-06-27

Valuation vs its own history

The sector trades at an aggregate P/E of 29.61× against a range of 8.86–61.59× over its 40-quarter history.pe

The median constituent sits at the 67th percentile of its own 10-year valuation range.percentile

P/E 29.6×67th percentile of its 10-yr range
Aggregate P/E vs its own history×
20.040.060.0P/E2016-062019-122023-062026-03
Data: Aggregate P/E and price index
PeriodP/E (×)Price index
Jun 16–100
Sep 16–114
Dec 16–109
Mar 17–110
Jun 17–102
Sep 17–95
Dec 17–128
Mar 18–113
Jun 18–119
Sep 18–104
Dec 18–111
Mar 1911.1107
Jun 199.995
Sep 1910.096
Dec 1913.0101
Mar 208.988
Jun 2016.0159
Sep 2032.8326
Dec 2053.5311
Mar 2161.6627
Jun 2144.4451
Sep 2136.1367
Dec 2135.9365
Mar 2222.1330
Jun 2219.2287
Sep 2221.8325
Dec 2222.8341
Mar 2320.5281
Jun 2326.8373
Sep 2329.1444
Dec 2329.5495
Mar 2418.6517
Jun 2421.3591
Sep 2425.1710
Dec 2429.0813
Mar 2525.3601
Jun 2527.3656
Sep 2529.3676
Dec 2528.5638
Mar 2629.6539

Data as of 2026-06-27

The companies

14 companies make up this sector, led by Aarti Pharmalabs Ltd at ₹6,437 Cr of market value.constituents

CompanyPrice1yStageRS10y val %
Aarti Pharmalabs Ltd₹702−22.1%4-8.093
Senores Pharmaceuticals Ltd₹1,313+131.7%257.463
Innova Captab Ltd₹973+13.2%222.367
Orchid Pharma Ltd₹975+28.9%233.893
Gujarat Themis Biosyn Ltd₹395+12.8%26.595
Aarti Drugs Ltd₹376−23.0%4-10.837
Beta Drugs Ltd₹2,185+25.3%437.793
Ind-Swift Laboratories Ltd₹201+76.0%265.093
Jagsonpal Pharmaceuticals Ltd₹238+3.0%213.459
Themis Medicare Ltd₹111−11.4%47.3–
Fermenta Biotech Ltd₹355+7.8%18.843
Wanbury Ltd₹288+4.6%214.048
Kopran Ltd₹189+3.7%221.393
Anuh Pharma Ltd₹80.0−26.0%4-2.444

Data as of 2026-07-01

Connected sectors

Tailwind chain: Global inventory destocking phase ending and strategic shift away from China gaining pace. Also touches: Pharma - API & CRAMS, Chemicals - Speciality.triggermechanism

tailwind

Global inventory destocking phase ending and strategic shift away from China gaining pace.

Western innovators are signing long-term CDMO contracts with Indian players, resulting in operating leverage as API and CRAMS facilities scale up utilization.

Pharma - API & CRAMSChemicals - Speciality

Research view from 2026-06-27

What is NOT happening

Institutional money is NOT yet crowding in: FII+DII holdings moved just +0.33 percentage points across constituents over the last two quarters — the capital-flow read is neutral.fii_dii_delta_2qread

  • Institutional money is NOT yet crowding in: FII+DII holdings moved just +0.33 percentage points across constituents over the last two quarters — the capital-flow read is neutral.

Data as of 2026-07-01

Frequently asked questions

Straight answers from the data

What is the Pharma - API sector?

The Pharma - API sector groups 14 listed companies with a combined market value of ₹40,462 Cr, led by Aarti Pharmalabs Ltd, Senores Pharmaceuticals Ltd, Innova Captab Ltd. 8 of 14 constituents are currently in confirmed price uptrends.

Which stocks are in the Pharma - API sector?

The largest Pharma - API companies by market value are Aarti Pharmalabs Ltd (₹6,437 Cr), Senores Pharmaceuticals Ltd (₹5,847 Cr), Innova Captab Ltd (₹5,387 Cr), Orchid Pharma Ltd (₹4,886 Cr), Gujarat Themis Biosyn Ltd (₹4,288 Cr), Aarti Drugs Ltd (₹3,399 Cr), Beta Drugs Ltd (₹2,125 Cr), Ind-Swift Laboratories Ltd (₹1,747 Cr).

What are the best-performing Pharma - API stocks?

By 1-year price return as of 1 July 2026, the strongest Pharma - API stocks are Senores Pharmaceuticals Ltd (+132%), Ind-Swift Laboratories Ltd (+76%), Orchid Pharma Ltd (+29%), Beta Drugs Ltd (+25%), Innova Captab Ltd (+13%). These are descriptive price moves measured from weekly Screener closes, not recommendations.

Is the Pharma - API sector in an uptrend?

8 of 14 Pharma - API constituents are in Stage-2 price uptrends, 11 trade above their 200-day average, and 11 are beating the NIFTY 500 on relative strength. Sector relative strength reads 44.2, in the leaders quadrant of the rotation map, rising over a 12-week streak.

How many Pharma - API stocks trade above their 200-day average?

11 of 14 Pharma - API constituents currently trade above their 200-day moving average. Over the trailing ~20 weeks, that share moved from 21% to 79% — participation is widening.

Is the Pharma - API sector expensive versus its own history?

The Pharma - API sector trades at an aggregate P/E of 29.6× against a 8.86–61.6× band over its own history. The median constituent sits at the 67th percentile of its own 10-year P/E range, above the middle of its own historical range.

Is money entering or leaving the Pharma - API sector?

On Sector Alpha's deterministic capital-flow read, money is neither clearly entering nor leaving the Pharma - API sector. Institutional (FII+DII) holdings moved +0.94 percentage points across constituents over the last four quarters, and constituents grew capex +1.1% year-on-year.

How fast is the Pharma - API sector growing?

In the latest reported quarter (March 2026), Pharma - API constituents together booked ₹3,171 Cr of revenue, +6.1% year-on-year, with aggregate profit −40.7% year-on-year. Figures aggregate Screener-scraped quarterly filings across the sector.

How are Pharma - API operating margins trending?

Aggregate Pharma - API operating margin was 15.6% in the latest reported quarter (March 2026), versus 15.5% a year earlier — margins are broadly steady.

Which sectors is the Pharma - API sector connected to?

The Pharma - API sector sits in 1 cross-sector chain: as a beneficiary it connects to Pharma - API & CRAMS, Chemicals - Speciality — Global inventory destocking phase ending and strategic shift away from China gaining pace..

What is the bull case for the Pharma - API sector?

A powerful structural import-substitution / China+1 story funded by ₹42,000 Cr of PLI capex, but earnings are at a cyclical margin trough on an API price crash and a US-tariff cloud — study the structural recovery, not yet the cycle. Sector ΣPAT -28.3% YoY

What could change the view on the Pharma - API sector?

Aggregate margins plunge further below mid-cycle levels, indicating the API price crash is structural (e.g. permanent Chinese dumping) rather than a cyclical trough. Also worth noting: institutional money is NOT yet crowding in: FII+DII holdings moved just +0.33 percentage points across constituents over the last two quarters — the capital-flow read is neutral.

What is the research view on the Pharma - API sector?

Sector Alpha does not publish trading recommendations or price calls — this is a research read, not advice. What the data says: turning around · divergent. The API sector is caught between a multi-year structural tailwind (China+1 sourcing and ₹42,000 Cr PLI capex) and a severe near-term margin crash (-28.3% YoY ΣPAT drop driven by API pricing/RM costs). Every number on this page traces to its source column; it is machine-written research, not investment advice.

Should I invest in the Pharma - API sector?

Sector Alpha does not publish sector allocations or trading calls — for Pharma - API or any sector. What this page provides is a data-first read: how many constituents are in confirmed uptrends, how the sector's valuation compares with its own history, where earnings sit in their cycle, and whether capital is entering or leaving. Use it to study the sector on the evidence, then do your own diligence.

What is the Pharma - API sector's relative-strength position?

Pharma - API relative strength reads 44.2 on Sector Alpha's rotation map, placing it in the leaders quadrant. Relative strength is rising and has held for 12 weeks. A positive, rising relative-strength trend means the sector has been outperforming the broad market week after week.

Generated from Screener data · 11 sources · sector_why_traces/1.0 + sector-story/1.0 · GOLD

Machine-compiled sector commentary derived from the constituent companies. Descriptive research only — Sector Alpha does not publish sector allocations, price targets, or buy/sell calls. Not investment advice.