Mankind Pharma, Zydus Lifesciences fuel Nifty Pharma to 52-week high; index trades 9.8% higher YTD

The sectoral benchmark index, Nifty Pharma, rose 0.7% intraday to its 52-week high of 25,043.15 points during the trading session, compared to 24,867 points at the previous stock market close, as per NSE data.

While Nifty Pharma’s 52-week low level was at 21,149.90 points, as per the exchange data.

Has Nifty Pharma outperformed NIFTY50 returns?

NSE data showed that so far in 2026, the Nifty Pharma index has gained 9.8% year-to-date, and has delivered more than 10% returns in the past one-month period. The index has been trading 4% higher over the last five trading sessions.

In the last five years, the pharma index has delivered over 77% returns to stock market investors, 105% returns in the last three years, and over 15% gains in the past one year, as per the exchange data.

In contrast, this year, the benchmark index, NIFTY50, has lost 9.6% year-to-date basis largely due to the US-Iran conflict in West Asia, which resulted in a supply chain disruption to companies and crude oil importers in the Eastern hemisphere.

The data further showed that the NIFTY50 index has lost 3% in the past one month, and is trading flat over the past five trading sessions. This data showed that the sectoral Nifty Pharma index has outperformed the benchmark NIFTY50 in terms of returns so far in the calendar year 2026.

Factors behind Mankind & Zydus’s rally today

Mankind Pharma and Zydus Lifesciences shares rallied during Wednesday’s trading session after both companies reported a healthy rise in net profits in the March quarter results for the financial year ended 2025-26.

Mankind Pharma shares rose 3.4% to an intraday high of ₹2,579.50, while Zydus Lifesciences shares surged more than 7% to a high of ₹1,093.65, according to NSE data.

Zydus Lifesciences reported a 9% year-on-year growth in consolidated net profits to ₹1,273 crore in the fourth quarter, compared with ₹1,171 crore in the same period a year ago, as per the NSE filings.

The company’s revenue from core operations surged 16% to ₹7,587 crore in the March quarter, compared with ₹6,528 crore in the same quarter a year earlier. Zydus Lifesciences’ operating profit margin advanced to 33.66%, from 32.56% a year ago.

The company also announced that its board approved a share buyback plan of up to 95.65 lakh fully paid-up equity shares with a face value of ₹1 apiece, making the total size of the repurchasing program not more than ₹1,100 crore.

This ₹1,100 crore buyback represents 5.16% and 3.84% of the aggregate of its fully paid-up equity share capital and free reserves based on the latest financial statements.

In the case of Mankind Pharma, the company posted a 32% rise in net profit after tax (PAT) to ₹559 crore in the fourth quarter, compared year-on-year with ₹424 crore in the same period a year ago.

The company’s core revenues rose 12% to ₹3,443 crore in the March quarter, compared to ₹3,079 crore in the same period a year earlier, as per the NSE filings. Mankind Pharma’s net profit margin for the quarter rose to 16%, from 14% a year ago.

The company’s operating margins rose to 26%, compared to 22% in the same quarter last year.

Analysts from Morgan Stanley said that Mankind Pharma’s healthy double-digit domestic growth was backed by the key therapy business growth performance in the March quarter results.

Other factors supporting Nifty Pharma

Amid an overall weak stock market due to global market cues, investors shifted their attention towards defensive sectors, which are somewhat shielded from the rising uncertainty in the global market and supply chain disruptions.

The Indian rupee weakening to its 9th consecutive record low against the US dollar on May 20, somewhat supported the gains in pharma stocks, as many of the companies export their products to international markets in exchange for the greenback.

Along with a weaker rupee and support from the Q4 earnings, the investors were also focused on the margin expansion of the pharma companies, and the advancement of drugs in the sector in the March quarter of the financial year ending 2025-26.

Other stocks like Laurus Labs, Piramal Pharma, Aurobindo Pharma, Biocon, and IPCA Laboratories were among the top gainers on Wednesday. While other pharma stocks like Gland Pharma, Ajanta Pharma, JB Chemicals & Pharma, Torrent Pharma, and Dr Reddy’s were among the top losers.