A COMPARATIVE ANALYSIS OF THE FINANCIAL PERFORMANCE OF SELECTED PHARMACEUTICAL COMPANIES IN INDIA

Abstract

The pharmaceutical industry plays an important role in the economic
development of India by contributing to industrial growth, employment
generation, healthcare accessibility, and international trade. Financial
performance is an important indicator of the stability, profitability, and growth
potential of pharmaceutical companies. The present study examines the
financial performance of selected pharmaceutical companies in India using
secondary data for the period 2020–21 to 2024–25. The study considers major
financial indicators such as revenue, operating profit, net profit, profitability
margins, assets, borrowings, and financial efficiency. Published financial
information from industry benchmarking reports and company annual reports
is used for the analysis. The findings indicate that the combined revenue of the
selected industry sample increased during the study period, although
profitability experienced fluctuations. Operating profit and net profit showed
recovery towards FY 2024–25. Company-level comparisons also reveal
differences in sales growth and operating performance among major
pharmaceutical companies. The study highlights the importance of cost
management, operational efficiency, financial stability, and continuous
investment in research and development. It concludes that sustainable
financial performance in the pharmaceutical industry depends on effective
financial management, product innovation, and the ability to respond to
domestic and international market conditions.