New Delhi, Oct. 9 -- The healthcare sector may be able to limit the impact of the government's decision to cap trade margins on non-scheduled anti-cancer drugs through cost rationalisation and gradual increases in procedure prices, according to a report by Jefferies.

The report said the move could affect hospital margins in the near term, but the impact on earnings before interest, taxes, depreciation and amortisation (EBITDA) is likely to be manageable. It also noted that regulatory uncertainty has eased for now, although concerns around markups on consumables remain.

"Although near-term margin could be impacted, we believe this will be transitory but importantly, regulatory uncertainty eases for now," Jefferies said in its report.

Th...