Pharma, healthcare Q3FY23 preview: Cost pressures abating to aid margins

Hospitals are expected to report a soft Q3 result due to a mix of seasonality and easing pent-up demand, however, average revenue per occupied bed is likely to remain steady

Analysts expect pharma and healthcare companies to report a modest growth in Q3FY23, supported by healthy domestic market performance, tapering down of raw material and freight costs, and easing pricing pressures in the US coupled with a strong flu season.

Hospitals are expected to report a soft Q3 result due to a mix of seasonality and easing pent-up demand, however, average revenue per occupied bed (ARPOB) is likely to remain steady. In diagnostics, analysts model in high-single digit year-on-year (YoY) volume growth in core business, but margins are under pressure from competition.

Analysts at Nuvama Research said that