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Indian pharma stocks are attracting foreign institutional investors (FIIs) due to their strong export orientation, especially in regulated markets like the US, and consistent demand for generics and speciality drugs.
Companies are benefiting from cost advantages, improving compliance records, and a growing focus on complex formulations and APIs.
Additionally, defensive characteristics during global uncertainty make pharma appealing. Here are three pharma stocks where FIIs have hiked their stake in the March 2026 quarter.
Shilpa Medicare is a niche Indian pharma company focused on oncology APIs, complex formulations, and CDMO services. It is transitioning toward higher-margin segments, such as biologics and speciality drugs.
FIIs slightly increased their holding from 10.97% to 11.08% in the March 2026 quarter. This indicates mild buying interest and a positive bias. It suggests gradual accumulation rather than aggressive investment and should be assessed alongside earnings, price trends, and broader institutional activity to provide clearer direction.
On the financial front, Shilpa Medicare reported revenues of ₹409.7 crore in Q3 FY26 vs ₹3,19.3 crore a year ago. The net profits jumped to ₹44.9 crore vs ₹314 crore.
Shilpa Medicare has been rapidly expanding. In February 2026, the company announced an expansion into the Latin American market.
SteinCares, a speciality healthcare company in Latin America, and Shilpa Biologicals Pvt. Ltd, a subsidiary of Shilpa Medicare, announced a strategic licensing agreement to commercialize a biosimilar across Latin America.
Further, Shipla Medicare is planning to build a large-scale peptide manufacturing capacity, for which, the work has already started, and the capex expansion plans would conclude during the second half of FY27.
On the development side, the company has completed scale-up batches for a new complex injectable product and is planning to complete registration batches by Q4 FY26; the same product will be filed globally.
Shilpa Medicare’s prospects are driven by its shift towards high-margin oncology formulations and speciality pharma. Growth could come from regulated markets and complex drug pipelines.
The company primarily operates in generic medicines, with a strong focus on over-the-counter (OTC) products, which account for a substantial share of revenue.
Marksans has a strong presence in regulated markets and benefits from approvals from agencies such as the US FDA and the UK MHRA. It has a diversified product portfolio across pain management, cough & cold, digestive health, and more, and operates in over 50 countries.
The shareholding trend indicates a sharp shift in institutional sentiment, particularly among foreign investors. FIIs have increased their stake significantly (doubling) from 8.13% in December 2025 to 16.76% in March 2026.
Moving ahead, Marksans product pipeline execution remains strong. The UK subsidiary, Relonchem received MHRA market authorization for multiple products, including mefenamic acid tablets and cetirizine oral solutions.
In the US, Marksans Pharma Inc. received the USFDA approval for amide hydrochloride. This will enhance the company’s presence in high-velocity OTC categories.
The approvals align with the company’s strategy to focus on and repeat demand therapies, particularly in pain, allergy, GI, and cough and cold segments.
Strategically, Marksans Pharma is taking measured but decisive steps to expand its global footprint. Recently, the company incorporated Marksans Europe Ltd in Ireland and Marksans Canada Inc., and is exploring further expansions. These will strengthen the company’s platform for future growth in the regulated market.
According to management, the strategy revolves around consistent market-share gains, a strong pipeline, and filings and launches, along with disciplined cost management and prudent capital allocation.
Jagsonpal Pharma is a niche pharma company focused on women’s health and core therapies, aiming to deliver affordable medicines with wide.
FIIs have hiked their stake in the company from 2.12% to 2.44% in the March 2026 quarter.
For FY26, while the revenue growth has been modest at around 7%, the company’s net profit has grown at 19% before exceptional items. The management in an earnings call on 28 April 2026, attributed the same to financial discipline and focused execution, which is also reflected in a strong cash position.
Looking ahead, management says the strategic priorities remain consistent, focusing on driving organic growth through enhanced MR productivity, sharper brand focus, and disciplined cost management, while the company continues to evaluate value-accretive inorganic opportunities. With a stronger execution framework, the company is confident it can sustain and accelerate growth momentum while delivering consistent long-term value to its stakeholders.
FIIs picking up stake in top pharma stocks is a good sign, as it generally reflects confidence in earnings visibility, export strength or regulatory clarity. But it's not a buy trigger on its own.
FIIs can also be early entrants and may exit quickly if global risk sentiment changes or valuations stretch. Earnings cycles, USFDA actions, and pricing pressure matter more than flows in pharma.
So, while FII buying adds conviction, always check fundamentals, valuations, and sector risks carefully before taking exposure.
Investors should evaluate the company's fundamentals, corporate governance, and stock valuation as key factors in conducting due diligence before making investment decisions.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
Equitymaster is India's leading independent equity research platform, providing in-depth research and analysis on BSE- and NSE-listed companies since 1996. As a SEBI-registered Research Analyst [Registration No. INH000021128], Equitymaster covers the full spectrum of Indian equities — bluechip stocks, midcap stocks, smallcap stocks, and microcap stocks.<br><br> At the heart of Equitymaster's research philosophy are the principles of value investing — particularly the margin of safety and the primacy of investment over speculation. All research is produced by an independent team of SEBI-registered research analysts with vast experience in Indian financial markets, using detailed systems and processes developed entirely in-house.<br><br> With over 17 lakh readers across 72 countries, Equitymaster is one of India's leading equity research publications. Since 1996, the goal has remained the same — to deliver honest, unbiased, and credible equity research that helps Indian investors make better, more informed decisions.
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