The US and the domestic markets contribute on average 30 per cent and 35 per cent of their revenues, respectively.
"The US market is witnessing an upturn after de-growth in five of the past eight quarters through June 2018," Crisil Ratings Senior Director Anuj Sethi said.
Revenue from US grew 7 per cent in the first quarter of this fiscal compared to a muted show in the same quarter of 2017-18, he added.
"We expect 6-7 per cent growth this fiscal, backed by lower intensity of regulatory issues, faster product approvals and improving share of complex products. This will also help offset pricing pressure faced in existing products," Sethi said.
Better domestic demand will complement the recovery in US sales, he added.
"Domestic revenues of big pharma companies is expected to grow 12-13 per cent this fiscal, given better access to healthcare and deeper penetration of health insurance," Sethi noted.
The recovery is already reflected in the first quarter with the domestic segment growing 25 per cent year-on-year, albeit on a low base, as the first quarter of the previous year was severely impacted by retailers destocking ahead of the goods and services tax implementation, he added.