Trump has proposed tariffs of up to 200% on imported generic drugs, escalating from an earlier 25% threat. India, which supplies roughly 45% of generic drugs consumed in the United States, sits directly in the crosshairs. For retail investors holding Indian pharma stocks, the question is simple: how much of each company's revenue is actually at risk?

We dug into the latest corporate filings on NSE to rank five major pharma companies by their US exposure — and what their own management teams are saying about the threat.

Aurobindo Pharma: The Most Exposed

Aurobindo carries the heaviest US concentration among large Indian pharma companies. Per their Q2 FY26 investor presentation, US revenue accounted for 43.9% of consolidated revenue at Rs 3,638 crores for the quarter. For full-year FY25, US formulation sales were Rs 14,816 crores out of Rs 31,711 crores in total revenue — roughly 47% of the business.

Aurobindo has filed a staggering 865 ANDAs with the US FDA, with 704 final approvals as of June 2025. That massive US pipeline is both its strength and its vulnerability. In their Q4 FY26 earnings call, management noted full-year FY26 revenue of Rs 33,653 crores with 6% growth, but US revenue on a constant currency basis already declined 18% year-on-year in Q4 FY26 even before any new tariff takes effect.

Sun Pharma: Scale Offers a Buffer, But US Is Still 29%

Sun Pharma, India's largest pharma company by market cap (Rs 1.99 lakh crore), derived 29% of its FY26 sales from the US, per its Q4 FY26 board outcome filing. Total consolidated sales for FY26 were Rs 582 billion. The company's US formulations brought in US$477 million in Q3 FY26 alone.

However, Sun Pharma has an important hedge: its Innovative Medicines business (branded specialty drugs sold in the US) delivered US$1.42 billion in FY26 revenue, growing 16.8% year-on-year. These specialty products carry higher margins and may be treated differently from commodity generics under any tariff framework. The company's India business, at 33% of revenue, also provides geographic diversification.

Lupin: 40% of US Sales Are Inhalation Products

Lupin holds the #3 position in the US by prescription volume and generated North America revenue of Rs 83,950 million in FY25, growing 22% year-on-year. Per their Q3 FY25 earnings call, quarterly US sales reached US$235 million, with inhalation products making up approximately 40% of US sales.

This matters because respiratory products like albuterol inhalers are complex generics with limited competition — they may be harder to replace with US-manufactured alternatives. Lupin's management flagged "growing US onshoring amid looming tariffs" as a key industry trend in their Q4 FY25 investor presentation, but also noted 53 first-to-file opportunities including 20 exclusives. Their complex product portfolio could partly insulate them if tariffs hit commodity generics hardest.

Dr. Reddy's: North America Declining Even Before Tariffs

Dr. Reddy's shows a concerning trend independent of tariffs. Per their Q4 FY26 investor presentation, North America revenue was Rs 1,756 crores — just 23% of the quarterly mix, down from 34% in Q3 FY26. For Q2 FY26, North America revenue of Rs 32,408 million was already declining 13% year-on-year.

The company's PSAI (pharmaceutical services and active ingredients) segment contributed 12% of Q4 FY26 revenue, and this B2B API business faces a different tariff calculus — US pharma companies buying Indian APIs to manufacture domestically might push for exemptions. Dr. Reddy's geographic diversification into Europe (20% YoY growth in Q3 FY26) and India (19% growth) provides partial protection.

Alkem Labs: Lower Exposure, but Growing US Ambitions

Alkem has the lowest US exposure among these five companies. Per their Q4 FY26 investor presentation, US revenue contributed 21.7% of total sales, with total quarterly revenue at Rs 36,033 million growing 14.6% year-on-year. India remains Alkem's core market at Rs 23,245 million in Q4 FY26 sales.

With 192 ANDAs filed and 167 approvals as of March 2026, Alkem has been steadily building its US pipeline. The company is also investing in a biosimilar CDMO plant, which management expects to become operational by Q2 FY27 per their FY25 earnings call. Tariffs could slow their US expansion plans.

What Indian Pharma Companies Are Already Saying

The filings reveal the industry is not caught off guard. Sun Pharma Advanced Research Company's FY26 annual report explicitly states: "The proposed tariff measures targeting imported pharmaceuticals and APIs created significant uncertainty for global supply chains" and notes that "global pharma companies accelerated US-based manufacturing investments."

Sigachi Industries' annual report quantifies the risk: "Proposed tariffs, potentially set at 25% or higher, could result in billions of dollars in additional costs, consequently raising generic prices for consumers." They note that "transitioning India's 752 FDA-approved facilities to meet reshoring needs in the US could take four to five years."

India has 703 US FDA-approved manufacturing facilities, per SMS Pharmaceuticals' annual report, and accounts for 20% of global generic drug exports by volume. This infrastructure cannot be replicated quickly, which is likely why the tariff threat may remain just that — a negotiating tool rather than policy.

What Retail Investors Should Do

Don't panic-sell, but do know your exposure. If your portfolio is overweight Aurobindo (44% US revenue) versus Alkem (22% US), your tariff risk is materially different. Watch for two signals in upcoming Q1 FY27 earnings calls: (1) whether companies are accelerating US-based manufacturing investments, which will compress margins short-term, and (2) whether they're diversifying into markets like Europe, Latin America, and Africa, which would reduce concentration risk. India's cost advantage in generic manufacturing means outright tariffs at 200% would raise American drug prices dramatically, creating political pressure to moderate the policy. The most likely outcome is a negotiated tariff in the 10-25% range, which would pressure margins but not break the business model.

Data sourced from company filings on NSE via Xaro.