World · India Bureau
Indian pharma stocks surge on strong CRDMO sector recovery
Shares of contract research and manufacturing organisations have climbed to record highs, with sector growth accelerating sharply in the first quarter of FY27. The rebound reflects renewed momentum in India's thriving pharmaceutical outsourcing business.
LSN India ·
India's contract research and drug manufacturing outsourcing (CRDMO) sector has staged a significant recovery, with growth rebounding to 19 per cent year-on-year in the quarter ended June 2026, according to research from Jefferies. The acceleration marks a notable turnaround from the 9 per cent year-on-year expansion recorded in the March 2026 quarter, representing the strongest quarterly performance since December 2024.
The resurgence in sector momentum has translated into strong gains for major players in the space. Prominent CRDMO companies including Divi's Laboratories and Laurus Labs have reached all-time highs, with some stocks advancing up to 91 per cent in valuations projected through FY27. The rally underscores investor confidence in the sector's growth trajectory and the structural opportunities in pharmaceutical outsourcing.
The improvement in growth rates reflects sustained global demand for contract manufacturing services and India's competitive positioning in the sector. With multinational pharmaceutical companies increasingly outsourcing research and manufacturing to India, the CRDMO segment has emerged as a key growth driver for the domestic pharma industry. Analysts expect the momentum to continue as companies benefit from cost advantages and technical expertise that attract international business.