Fund Manager Talk | Growth of hospitals will outpace pharma companies: Shibani Kurian

As many hospitals are planning to double their capacity over the next three to five years, Shibani Kurian, Head — Equity Research and Fund Manager, Kotak Mahindra AMC, estimates that the growth of hospital companies will outpace that of diagnostics and pharmaceutical companies.

In this interview with ET Markets, Kurian also talks about investing in pharma stocks amid Trump's tariff threats. Edited excerpts from a chat:

Pharma was a strong contender for being the best performing category in FY26 as it is one of the few safe havens in the current market. But then Trump's tariff plans have been playing spoilsport. What is your base case scenario as to how pharma exporters may get impacted?
Indian companies play a crucial role in supplying high-quality generic medicines to the U.S., which accounts for approximately 90% of all medicines consumed there. Indian firms contribute around 50% of these generics, making them indispensable due to their ability to operate at unmatched cost efficiency. Given the low margins in the generic business, a proposed 10% tariff would likely be difficult to absorb and would likely need to be passed on to consumers.

Given the present uncertainty, we need to wait and watch on how the tariff situation evolves. However, it is likely that in the event of the imposition of the tariff, Indian companies may contemplate transferring all or part of these additional costs, as no other supplier can match the competitive pricing of Indian manufacturers.


The healthcare sector remains one of the