Q2FY23 preview: Modest revenue growth, Ebitda decline seen in pharma cos

While domestic market demand is strong, analysts expect higher raw material and freight costs to affect business in US, other countries; healthy YoY growth seen in hospitals and diagnostics

Analysts expect that pharmaceutical companies will likely report modest revenue growth in the July-September quarter (Q2) of FY23, but their earnings before interest, tax, depreciation, and amortisation (Ebitda) will decline due to a high base and normalised expenses.

Though domestic market demand is strong, analysts expect that higher raw material and freight costs will impact business in the US and other countries.

Recovery in the base business may help hospitals and diagnostics post healthy year-on-year (YoY) growth. “Hospitals are likely to report robust operating performance, driven by rising occupancy, stable average revenue per occupied bed (ARPOBs), and traction in international patients. Diagnostics