The Healthcare sector in India performed well in Q2 of FY25; revenue grew 17.6 per cent, YoY. According to a report.
According to the report from Axis Securities, the healthcare sector also performed well, growing by 10.4 per cent QoQ.
Hospital occupancy rates, which rose by 340 bps YoY and 470 bps QoQ, was a key driver behind growth.
Further, insurance payers accounted for 33 per cent of total revenues in the hospital segment — up by 23 per cent YoY and 12 per cent QoQ.
Nevertheless, the insurance penetration remains low, according to the report. It also offers room for expansion as awareness and purchasing power rise.
The report pointed out that, once again, cancer and cardiac care remains a high growth driver; in addition to that are occupancy growth and Average Revenue Per Occupied Bed (ARPOB), sustaining the future growth of the healthcare sector.
In Q2 FY25, the report also documented strong growth of the Indian pharma sector.
Major Indian pharmaceutical companies reported 10 per cent YoY growth in Q2 FY25. The progress has been driven by excellent performance in both North America and the Indian domestic market.
The Indian Pharmaceutical Market (IPM) stood at an increase of 8 per cent YoY, with chronic therapies advancing 9 per cent. Acute therapies, however, increased only modestly by 4 per cent, as the season was particularly weak.
Under coverage, the pharmaceutical sector reported growth of 10.2 per cent YoY and 1.7 per cent QoQ, driven by a 10.8 per cent YoY increase in North America and a 9.8 per cent YoY rise in the Indian business.
Despite a niche scare, the outlook for the pharmaceutical sector remains positive in the near term, heading into the next three years, with a promising pipeline in biosimilars, GLP-1 (glucagon-like peptide-1), and peptides-all of which are important in treating diabetes and other conditions.
Companies with a significant share of chronic therapy portfolios continue to outperform the broader market.
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