HSBC’s Impact Analysis of 10% Tariff on Indian Pharma Companies

HSBC has analyzed the potential impact of a 10% tariff on Indian pharmaceutical companies’ earnings per share (EPS) for the financial year 2026. If the tariff is imposed, the estimated EPS impacts are as follows:

– Aurobindo Pharma: approximately 6.5%

– Zydus Cadila: approximately 6%

– Cipla: approximately 4%

– Dr. Reddy’s Laboratories: approximately 6.5%

– Lupin: approximately 4.5%

– Sun Pharma: approximately 1%

– Torrent Pharma: approximately 0.8%

These projections highlight the varying degrees of impact that the tariff could have on each company. Aurobindo Pharma and Dr. Reddy’s Laboratories are expected to experience the highest impact, while Sun Pharma and Torrent Pharma are likely to face the least. Investors should consider these potential impacts when making investment decisions in the Indian pharmaceutical sector.

HSBC’s analysis underscores the importance of understanding the potential consequences of trade policies on individual companies. By staying informed, investors can better navigate the complexities of the market and make more informed decisions.