Results preview: Pharma margins likely to remain under pressure in Q1

Hospitals back to normalcy; tough road ahead for diagnostics

FY23 is a critical year for Indian pharma after two consecutive years of the pandemic. In the first quarter of the ongoing financial year, analysts expect a 5 per cent revenue growth, while the profit after tax (PAT) is expected to decline by 9-10 per cent year-on-year (YoY), as persistent cost pressures will keep the margin tepid.

On the other hand, hospitals are gradually returning to normalcy, and sector analysts expect Fortis Healthcare and HCG to post strong numbers. Diagnostics companies, however, have a tough road ahead. In the first quarter of FY23, they have battled a slower uptick in non-Covid-19