November 18, 2025
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Pharma Index is quietly preparing for a meaningful Breakout
Price and Earnings Breakout seen in Pharma Stocks going ahead
- CNX Pharma index was consolidating in a range for more than a year. It seems the index is quietly preparing for a meaningful breakout.
- If you look at the chart, pharma has followed a very rhythmic structure. A sharp rally in a clean rising channel between Mar’20 to Oct’21… then a deep correction from Oct’21 to Mar’23… followed again by another rising channel from Mar’23 to Oct’24 and a correction from Oct’24 till date.
- The consolidation over the last one year formed by a downward sloping trend line acted like a lid on prices. Now that lid is finally weakening.
- A clean close above the falling trend line could open the path for a fresh uptrend in CNX Pharma. Stock specific action has already started picking up. A sector level breakout will only amplify it.
- Pharma is finally waking up… and it deserves a place on every watchlist right now.
- The September quarter (Q2) 2025 numbers for CNX Pharma tell a clear story… the sector is no longer just attempting a chart breakout, it is now being backed by genuine earnings strength. Gross sales for the index constituents have surged to ₹88,241 crore in Sep-25, the highest reading in the last four years. What makes this even more meaningful is the consistency behind it. Sales have steadily climbed quarter after quarter since early 2023, signaling broad-based demand across domestic formulations, exports and specialty segments.
- But the real shift is visible in profitability. Profit After Tax has jumped to ₹14,218 crore… again the strongest print in this entire period. After going through margin pressures during 2021 and 2022 due to input cost spikes and US pricing challenges, the sector has rebuilt its profitability brick by brick. Cost efficiencies, better product mix and improved pricing in key markets are now showing up in the numbers. The last five quarters show a clean upward slope… and Sep-25 marks a clear breakout in earnings momentum.
- This is exactly the kind of fundamental confirmation that validates the price breakout we saw on the charts. Technical breakouts that coincide with fresh highs in sales and profits tend to sustain far longer. The sector spent last year consolidating both in price and profit metrics… and now both have turned up together.
- When price action and earnings move in the same direction, trends become durable. CNX Pharma may finally be entering a new cycle… one driven not by hope, but by hard numbers.
(Analysis on pharma stocks by By Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities)
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