Nifty Pharma index movement

Shares of pharmaceutical companies were in demand with the Nifty Pharma index hitting a new high of 27,263.95, surging over 2 per cent on the National Stock Exchange (NSE) in Friday’s intraday deals amid a strong rally in Contract Development and Manufacturing Organizations (CDMOs) stocks. The pharma index surpassed its previous high of 27,255.05 touched on September 24, 2026.

Laurus Labs, Zydus Lifesciences, Ajanta Pharma, Sai Lifesciences, Piramal Pharma and Sun Pharmaceutical Industries rallied in the range of 3-6 per cent in intraday deals. Mankind Pharma, Ipca Laboratories, Torrent Pharmaceuticals, Divis Laboratories, Cipla and Aurobindo Pharma were up 2 per cent each.

What’s driving pharmaceutical stocks?

Share price of Laurus Labs soared 6 per cent to hit a new high of ₹2,385.80 on the NSE in intraday trade. In the past week, the stock surged 21 per cent as the company reported strong September 2026 quarter (Q2FY27) earnings. It bounced back 160 per cent from its 52-week low of ₹917.95 touched on February 2, 2026.

Laurus continues to move up the value chain, evolving from an Active Pharmaceutical Ingredients (API)-led business towards a CDMO platform. Analysts at Choice Institutional Equities expect CDMO (Synthesis and Bio) to be the key growth driver, with its revenue contribution projected to rise to 50 per cent by FY29E (from 30 per cent in FY26). Key drivers include late-stage programmes with global partners, around 125 active projects and peptide commercialisation. The improving business mix, alongside operating leverage, should support margin expansion. The brokerage firm revised the target price to ₹2,500 and retained an ‘ADD’ rating on the stock.

Share price Sun Pharma rallied 5 per cent to ₹2,528 after the company reported 4.8 per cent year-on-year (YoY) growth in EBITDA at ₹4,743.9 crore. Sales grew 11.8 per cent YoY at ₹16,100 crore.

Meanwhile, Sun Pharma announced that the company received USFDA approval for ILUMYA (tildrakizumab-asmn) for treating adults with active psoriatic arthritis (PsA). The approval expands the drug’s use beyond moderate-to-severe plaque psoriasis, for which it was approved in the US in 2018. 

ILUMYA is an IL-23 inhibitor administered exclusively by healthcare professionals, offering an option for patients unable to self-administer treatment or those who may benefit from in-office care. The approval is supported by two Phase III studies, INSPIRE-1 and INSPIRE-2, evaluating efficacy and safety in adults with active PsA. ILUMYA has also been approved for moderate-to-severe plaque psoriasis in India, Australia, Canada, China and Japan, and under the brand name ILUMETRI in Europe, where it is marketed by Almirall.

Approval for the additional indication is a significant development and could pave the way for incremental revenues. Approximately 2.4 million Americans live with psoriatic arthritis. As per earlier comments from management, around 30 per cent of patients with plaque psoriasis are likely to be impacted by psoriatic arthritis as well in due course, ICICI Securities said in a note.

The share price of Piramal Pharma hit a 52-week high of ₹239.50 surging 4 per cent on the NSE in intraday trade. In the past week, the stock zoomed 25 per cent as the company lifted its FY27 outlook and now expects revenue growth of 19 per cent to 20 per cent, accompanied by meaningfully higher profitability.

With H2 typically stronger than H1, the management said the company is well-positioned to deliver a strong full-year performance, supported by a healthy order book, encouraging customer engagement, and continued operating discipline.

“H1FY27 has seen a healthy recovery in revenue and margin, supported by the CDMO segment, scale-up of complex launches and brand premiumisation. We project this momentum to continue, driven by improved order inflows from better biopharma funding, a meaningful contribution from Kenalog and continued growth in power brands and e-commerce,” analysts at Choice Institutional Equities said. The brokerage firm also forecast EBITDA to grow faster than revenue, supported by cost-management and a better product mix. It revised the target price to ₹250 and upgraded the rating to ‘ADD’, supported by an improved outlook. Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.