New Delhi, July 9 -- Indian pharmaceutical companies are expected to report improved revenues in the first quarter of FY2026-27, but profitability is likely to come under pressure due to an unfavourable product mix and higher input costs, according to a report by Goldman Sachs.

In its Q1FY27 preview, the brokerage said revenues are expected to improve, but margins are likely to decline as companies no longer benefit from high-margin while facing higher raw material and freight costs arising from the Middle East conflict.

It stated, "We remain cautious on most US generic names, given the absence of high margin gRevlimid revenues as well as accounting for higher input costs/ freight charges due to the middle east conflict"

The report sai...