Nifty Pharma Index Hits Record High as Key Pharma Stocks Rally Up to 6%

The Nifty Pharma index reached a fresh peak of 27,263.95 during intraday trading on Friday, marking a gain above 2 percent on the National Stock Exchange. This surge surpassed the previous record of 27,255.05 set on September 24, 2026, driven largely by a rally in Contract Development and Manufacturing Organizations (CDMOs) stocks.

Several prominent pharmaceutical companies saw their shares climb significantly. Laurus Labs, Zydus Lifesciences, Ajanta Pharma, Sai Lifesciences, Piramal Pharma, and Sun Pharmaceutical Industries recorded intraday gains ranging from 3 to 6 percent. Other firms including Mankind Pharma, Ipca Laboratories, Torrent Pharmaceuticals, Divis Laboratories, Cipla, and Aurobindo Pharma rose approximately 2 percent each.

Strong Earnings and Strategic Growth Propel Laurus Labs

Laurus Labs emerged as a standout performer, with its stock price soaring 6 percent to a new high of ₹2,385.80 on the NSE. Over the past week, the shares have jumped 21 percent following the release of robust Q2FY27 results for the September 2026 quarter. Since hitting a 52-week low of ₹917.95 in early February 2026, the stock has rebounded approximately 160 percent.

The company’s revenue growth was fueled by consistent momentum across both its CDMO and Affordable Medicine divisions. Improved capacity utilization from expanding commercial supplies supported higher EBITDA margins, while gross margins benefited from a favorable product mix. Laurus Labs is evolving its business model from primarily producing Active Pharmaceutical Ingredients (APIs) to becoming a more comprehensive CDMO platform.

Analysts from Choice Institutional Equities highlighted that CDMO operations, including synthesis and biological services, are expected to become the main growth drivers. Their projections indicate that CDMO revenue contribution will increase from 30 percent in FY26 to 50 percent by FY29. Key growth factors include a pipeline of about 125 active projects, late-stage programs with global partners, and peptide commercializations. The brokerage firm revised its target price for Laurus Labs to ₹2,500 while maintaining an ‘ADD’ rating.

Sun Pharma Gains on Earnings and New USFDA Approval

Sun Pharmaceutical Industries also recorded a strong 5 percent rise in its share price, closing at ₹2,528. The company posted an 11.8 percent year-on-year increase in sales, reaching ₹16,100 crore, alongside a 4.8 percent rise in EBITDA to ₹4,743.9 crore. A significant development for Sun Pharma came with the US Food and Drug Administration’s approval for ILUMYA (tildrakizumab-asmn) to treat active psoriatic arthritis (PsA) in adults.

This new approval expands ILUMYA’s indication beyond its earlier use for moderate-to-severe plaque psoriasis, which was first authorized in the US in 2018. ILUMYA is an IL-23 inhibitor administered exclusively by healthcare professionals, making it suitable for patients requiring in-office care or those unable to self-administer treatment. The approval was supported by two Phase III clinical trials, INSPIRE-1 and INSPIRE-2, which evaluated the drug’s safety and efficacy in PsA patients.

ILUMYA is already approved for moderate-to-severe plaque psoriasis in markets such as India, Australia, Canada, China, Japan, and Europe (where it is marketed as ILUMETRI by Almirall). This additional indication could translate into new revenue streams given that approximately 2.4 million Americans live with psoriatic arthritis. Industry observers note that about 30 percent of plaque psoriasis patients may also develop psoriatic arthritis over time.

Piramal Pharma Hits 52-Week High on Upbeat Outlook

Piramal Pharma’s shares climbed 4 percent to a 52-week high of ₹239.50 during intraday trading. The stock has gained 25 percent in the last week after the company revised its FY27 revenue growth forecast to 19-20 percent with significantly improved profitability expectations.

Management indicated that the second half of the fiscal year generally shows stronger performance than the first half. The company is well-positioned for a solid full-year outcome, supported by a strong order book, positive customer engagement, and disciplined operations. The CDMO segment, complex product launches, and brand premiumization have contributed to a recovery in revenue and margins during the first half of FY27.

Choice Institutional Equities analysts expect this momentum to continue, driven by better order inflows from increased biopharma funding and growth in key brands and e-commerce channels. They also forecast EBITDA growth to outpace revenue gains due to cost management and an improved product mix. Consequently, the brokerage upgraded Piramal Pharma’s rating to ‘ADD’ with a revised target price of ₹250.

The pharmaceutical sector’s recent performance reflects increasing investor confidence amid strong corporate earnings and regulatory approvals. The shift of companies toward CDMO models and specialty drug portfolios aligns with global industry trends emphasizing innovation and contract manufacturing services. As healthcare demands evolve, these factors are likely to influence market valuations and sector growth in the near term.