Karachi: The pharmaceutical sector in Pakistan reported an increase in profitability by 11.4% year-on-year in the third quarter of calendar year 2026, driven by higher domestic sales and improved profit margins.

According to AKD Securities Limited, the sector's gross margins improved due to several factors, including higher prices from the deregulation of non-essential drug prices, an increasing mix of high-margin products, and contained input costs supported by a stable currency. Among the prominent players, companies such as ABOT, GLAXO, and SEARL saw gains in their profitability due to enhanced margins. Conversely, companies like HPL, AGP, and HALEON experienced a decline in profitability compared to the previous year.

AKD maintains a positive outlook on the sector, citing the pricing power and increasing demand as supportive factors. GLAXO, HALEON, and HINOON are highlighted as preferred picks for future growth within the industry.