Apollo Hospitals’ shares rose 3.4% to ₹7,926, while Fortis Healthcare jumped 4% to ₹793.10, Manipal Health climbed 3% to ₹703.95 and Aster DM edged 2.5% to ₹693.85. HCG, however, slid 5.2% to ₹605.70 as concerns over margin erosion surfaced.
The government’s 30% cap on trade margins for 42 non‑scheduled anti‑cancer drugs is expected to trim MRPs by up to 70% for some medicines and generate ₹2,500 crore in annual savings. Manufacturers say their selling prices and revenues will stay flat, as the intervention targets distribution‑chain margins.
ICICI Securities’ Abdulkader Puranwala predicts an EBITA impact of 1‑2% for Apollo, with other analysts estimating 1‑4% depending on oncology exposure. The cap is deemed a step down from a prior 16% limit and is unlikely to hit free‑bie curbs, keeping sector margins largely intact.
HCG’s chairman, BS Ajai Kumar, warned that low margins could curtail the supply of certain cancer drugs, potentially compromising patient access. He urged a careful review of bulk‑purchase pricing to avoid unintended shortages.
With the Supreme Court hearing on October 12 looming, investors eye how the court will shape future drug‑price controls. Companies are expected to maintain production levels, and the market anticipates a modest earnings drag ahead of the next quarterly report on December 15.