Pharma Stocks Rally! Nifty Pharma hits 52-week high, gains 27% in 2026, outperforms Nifty 50 - What's driving rally?

Shares of Gland Pharma, Sai Life Sciences, Glenmark Pharmaceuticals and Divi's Laboratories were among the top gainers, rising to 6.61 per cent during the session.

Pharmaceutical stocks rallied on Monday, November 9, with the Nifty Pharma index hitting a fresh 52-week high after several companies reported their September-quarter earnings.

Shares of Gland Pharma, Sai Life Sciences, Glenmark Pharmaceuticals and Divi's Laboratories were among the top gainers, rising up to 6.61 per cent during the session.

The Nifty Pharma index was trading at 28,822.80, up 395.05 points, or 1.39 per cent. The index crossed its previous 52-week high of 28,494.50 and touched a new peak, while its 52-week low stands at 21,149.90.

The rally comes amid a mixed set of Q2 FY27 earnings from pharmaceutical companies, with several players reporting healthy growth in consolidated revenue and net profit, while others witnessed pressure on their bottom lines.

Top gainers and losers

Among the Nifty Pharma constituents, Gland Pharma was the top gainer, rising 6.61 per cent to Rs 3,340. Sai Life Sciences advanced 4.99 per cent to Rs 1,831, while Glenmark Pharmaceuticals gained 3.28 per cent to Rs 2,680.

Divi's Laboratories shares climbed 3.15 per cent to Rs 11,447, while Ipca Laboratories rose 2.53 per cent to Rs 1,987.70. Aurobindo Pharma gained 2.33 per cent to Rs 1,846.

Mankind Pharma advanced 2.24 per cent to Rs 2,640.70, while Wockhardt and Laurus Labs gained 2.22 per cent each to Rs 2,050.80 and Rs 2,422.70, respectively.

Alkem Laboratories shares rose 1.61 per cent to Rs 5,389.50. Dr Reddy's Laboratories and Zydus Lifesciences gained 0.96 per cent and 0.93 per cent, respectively.

Abbott India, Lupin, Ajanta Pharma and Biocon also traded in positive territory, gaining 0.81 per cent, 0.78 per cent, 0.60 per cent and 0.20 per cent, respectively.

Cipla shares edged higher by 0.05 per cent to Rs 1,406.50. However, Sun Pharmaceutical Industries slipped 0.20 per cent, while Torrent Pharmaceuticals and Piramal Pharma declined 0.58 per cent and 0.62 per cent, respectively.

Q2 FY27 results: Laurus Labs leads profit growth

The September-quarter earnings have been an important factor in the recent focus on pharmaceutical stocks. Among the companies that have announced their Q2 FY27 results, Laurus Labs reported the highest year-on-year growth in consolidated net profit at 124.27 per cent.

The company's net profit increased to Rs 436 crore, compared with the corresponding quarter last year. Revenue from operations rose 33.44 per cent to Rs 2,206 crore.

Divi's Laboratories reported a 63.57 per cent increase in consolidated net profit to Rs 1,127 crore. Its revenue increased 35.40 per cent to Rs 3,676 crore.

Gland Pharma also reported a healthy performance, with consolidated net profit rising 58.29 per cent to Rs 290.76 crore, compared with Rs 183.68 crore in the year-ago quarter. Revenue from operations increased 23.32 per cent to Rs 1,833.59 crore.

Ajanta Pharma reported a 49.18 per cent rise in net profit to Rs 388 crore, while revenue increased 32.53 per cent to Rs 1,794 crore.

IPCA Laboratories' consolidated net profit increased 38.78 per cent to Rs 389 crore. Revenue grew 13.83 per cent to Rs 2,910 crore.

Mankind Pharma reported a 37.67 per cent increase in net profit to Rs 716 crore, while revenue rose 17.33 per cent to Rs 4,338 crore.

Aurobindo Pharma's consolidated net profit increased 32.51 per cent to Rs 1,124 crore. Revenue from operations grew 23.87 per cent to Rs 10,263 crore.

Sai Life Sciences reported a 22.54 per cent increase in revenue to Rs 659 crore, while its net profit grew 17.27 per cent to Rs 98 crore.

Sun Pharma reports highest profit despite decline

Sun Pharmaceutical Industries reported the highest consolidated net profit among the companies in the comparison at Rs 1,995 crore in Q2 FY27. However, its net profit declined 36.16 per cent year-on-year, while revenue from operations increased 11.88 per cent to Rs 16,199 crore.

Lupin reported consolidated net profit of Rs 1,155 crore, down 22.19 per cent from the corresponding quarter last year. Revenue increased 11.06 per cent to Rs 7,827 crore.

Zydus Lifesciences reported a 25.10 per cent decline in net profit to Rs 928 crore, despite a 29.17 per cent increase in revenue to Rs 7,910 crore.

Torrent Pharmaceuticals reported revenue growth of 50.79 per cent to Rs 4,979 crore. However, its consolidated net profit declined 9.64 per cent to Rs 534 crore.

Glenmark Pharmaceuticals reported a 56.78 per cent decline in consolidated net profit to Rs 264 crore. Its revenue from operations fell 29.76 per cent to Rs 4,247 crore.

Biocon's consolidated net profit declined 52 per cent to Rs 41 crore, compared with Rs 85 crore in the year-ago quarter. Revenue increased 2.17 per cent to Rs 4,389 crore.

Cipla reported a 37.08 per cent decline in net profit to Rs 852 crore, while its revenue from operations fell 2.44 per cent to Rs 7,404 crore. Dr Reddy's Laboratories also reported a 31.69 per cent decline in consolidated net profit to Rs 913 crore, with revenue falling 1.48 per cent to Rs 8,698 crore.

Piramal Pharma reported revenue growth of 28 per cent to Rs 2,617 crore and returned to profitability, reporting a consolidated net profit of Rs 5 crore against a loss of Rs 99 crore in the corresponding quarter last year.

Nifty Pharma outperforms broader market over three months

The Nifty Pharma index has delivered returns of 6.26 per cent over the past week and 10.93 per cent over the past month. Its gains stood at 8.51 per cent over three months, 19.45 per cent over six months and 27.25 per cent on a year-to-date basis.

On a one-year basis, the index has advanced 29.91 per cent. Its returns over three years and five years stood at 85.91 per cent and 107.52 per cent, respectively.

In comparison, the Nifty 50 has gained 6.33 per cent over the past week and 10.68 per cent over the past month. However, its three-month and six-month returns stood at 1.44 per cent and 3.10 per cent, respectively.

The benchmark index has declined 4.67 per cent on a year-to-date basis and 2.22 per cent over one year. Its three-year and five-year returns stood at 28.51 per cent and 38.14 per cent, respectively.

The performance indicates that pharmaceutical stocks have outperformed the broader market over the three-month, six-month, year-to-date and one-year periods.