Why Is Bajaj Healthcare Seeing Export-Led Growth Despite Domestic API Pricing Pressure?
About Bajaj Healthcare
Bajaj Healthcare operates across Active Pharmaceutical Ingredients (APIs), formulations, and Contract Development & Manufacturing (CDMO), with a growing focus on regulated global markets.
The company is gradually transitioning from a domestic-focused API model to an export-led, compliance-driven growth strategy.
Bajaj Healthcare’s Q3 performance highlights a clear divergence between domestic pricing pressure and strong export momentum, supported by regulatory approvals and portfolio expansion.
Domestic API Business: Volume-Led Growth
Domestic API revenues grew 15.3% YoY in Q3 FY26 despite sustained pricing pressure.
Management attributed growth to steady volume expansion, indicating stable demand conditions in the domestic pharmaceutical market.
However, for 9M FY26, domestic API revenues declined marginally by 2% YoY, reflecting the ongoing impact of price compression.
The ability to deliver volume-led growth in a price-sensitive environment suggests operational resilience, though margin pressures remain a key monitorable.
API Exports: Key Growth Driver
API export revenues surged 110% YoY to ₹487 million in Q3 FY26.
This sharp rise underscores Bajaj Healthcare’s increasing penetration into regulated and semi-regulated markets.
Export-led growth is expected to gradually offset domestic pricing challenges.
Management has indicated that exports will form a larger share of the revenue mix going forward, supported by regulatory filings and cost competitiveness initiatives.
Formulations and CDMO: Steady Scale-Up
Formulations revenue grew 6.8% YoY in Q3 FY26.
For 9M FY26, formulations revenue rose 12.6% YoY, reflecting improved scale.
CDMO operations continued to expand, with increasing supplies to global innovator companies.
The gradual scaling of formulations and CDMO provides revenue diversification and improves long-term earnings stability.
Regulatory Progress and CNS Pipeline
The company received CDSCO approval for Phase III clinical trials of Suvorexant.
Phase III trials are ongoing for Cenobamate.
The CNS portfolio expanded with the launch of Magtein.
Nine Drug Master Files (DMFs) were filed during the quarter.
Regulatory momentum is critical for Bajaj Healthcare’s ambition to access higher-value, regulated markets where pricing and margins are more stable.
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Management Outlook
Management expects a gradual shift toward export-led growth driven by a strong API base.
Focus areas include cost competitiveness, regulatory approvals, and scalable operations.
Continued investments in R&D and capex are aimed at supporting long-term growth.
The outlook suggests a multi-year transition phase, where near-term volatility may coexist with improving structural fundamentals.
Investor Takeaway: Derivative Pro & Nifty Expert Gulshan Khera, CFP®, notes that Bajaj Healthcare’s Q3 performance reflects a classic pharma transition story—domestic price pressure being counterbalanced by export growth and regulatory progress. While execution and margin risks persist, sustained regulatory filings and export traction can improve earnings quality over the medium term. Read free analysis at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Bajaj Healthcare
Why are API exports growing faster than domestic sales?
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
