As the Trump administration intensifies its trade stance with the unveiling of fresh tariff threats, Indian pharmaceutical companies with high US revenue exposure have come under the spotlight. The pharmaceutical sector is among India’s top export earners, and any disruption could materially impact earnings for several firms.
According to data reviewed, many leading Indian pharma firms derive a significant chunk of their revenue from the US market:
- Natco Pharma: ~70% US revenue
- Aurobindo Pharma: ~50% US revenue
- Dr. Reddy’s Laboratories: ~40–45% US revenue
- Lupin: ~40% US revenue
- Cadila (Zydus Life): ~40% US revenue
- Sun Pharma: ~35% US revenue
- Glenmark: ~35% US revenue
- Cipla: ~30% US revenue
- Biocon: ~30% US revenue
- Torrent Pharma: ~25–30% US revenue
While the pharma sector has so far been spared from the announced tariffs, brokerages remain cautiously optimistic. Citi noted that pharma has been excluded for now, but the duration of this relief remains unclear. Jefferies highlighted that while the current impact is minimal, sector-specific tariffs could emerge later, keeping stocks volatile.
Despite these risks, the exemption has triggered a short-term rally in pharma stocks. As of 9:15 AM today, Aurobindo Pharma was up 8.1%, Dr. Reddy’s rose 6.2%, and Lupin jumped 4.9%, leading sectoral gains.
Bottom line: A temporary sigh of relief for now, but high US dependence makes the pharma sector vulnerable if trade tensions escalate further. Investors should watch for further updates from both Washington and New Delhi in the coming days.
