📄 Abstract
In this research, we evaluated the varied effects of Foreign Institutional Investment on the financial results experienced by ten selected pharmaceutical firms located in India. The period of analysis contained quarterly information concerning twenty-four quarters, beginning from FY 2020-21 to FY 2025-26 regarding the companies, including Sun Pharmaceutical Industries, Dr Reddy's Laboratories, Cipla, Divi's Laboratories, Lupin, Torrent Pharmaceuticals, Zydus Lifesciences, Biocon, Aurobindo Pharma and Glenmark Pharmaceuticals. In this respect, we viewed FII/FPI holdings as the primary independent variable, and Revenue from Operations, Profit after Tax, Basic Earnings per Share, Share Price and Market Capitalization as two forms of accounting and market performance respectively. To assess how institutional investment influenced companies, we employed Pearson's correlation and company-wise ordinary least squares regression, in order to understand how institutional investment changes are influencing companies. The analysis found wide variation among companies. For instance, Dr Reddy's, Lupin, Torrent and Aurobindo had a broad positive impact, while Cipla showed large changes in revenue and market valuation but no changes in profitability. Sun Pharma and Zydus had higher market than accounting effects. Divi's experienced significant negative impact, while Biocon and Glenmark had negative or weak results. Tests conducted confirmed that selected models may experience autocorrelation, non-normality and heteroscedasticity, but multicollinearity was not confirmed. Conclusively, it can be mentioned that the role of FII can be considered as a company-specific factor.
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📚 How to Cite:
Divyashree T, Dr. Nischith S , HETEROGENEOUS EFFECTS OF FOREIGN INSTITUTIONAL INVESTMENT ON INDIAN PHARMACEUTICAL COMPANIES: A COMPANY-WISE COMPARATIVE STUDY , Volume 13 , Issue 8, August 2026, EPRA International Journal of Economics, Business and Management Studies (EBMS) , Pages: 9 - 17 , DOI: https://doi.org/10.36713/epra28807