The pharmaceuticals and healthcare sector is set for a mixed performance in the March quarter, with hospital chains anticipated to show steady growth. Apollo Hospitals is expected to benefit from strong traction across its hospitals, pharmacy, and diagnostics segments, with revenue growth supported by new bed additions and increased average revenue per patient. In contrast, generic drugmakers are facing challenges, particularly due to the absence of Revlimid sales, which is expected to impact companies like Aurobindo Pharma and Dr. Reddy's. Aurobindo Pharma is projected to report single-digit revenue growth, with a notable decline in US sales attributed to Revlimid. Dr. Reddy's is likely to see a significant decline in Ebitda, estimated at 28-30%, due to reduced gRevlimid business and one-time shelf stock adjustments. On the other hand, Lupin is expected to deliver strong growth, driven by products like Tolvaptan and Mirabegron, with an anticipated Ebitda jump of around 50% year-on-year. Divi's Laboratories is also poised for growth, benefiting from custom synthesis and a recovery in nutraceuticals, despite a decline in generic API sales. Overall, the sector's Ebitda is projected to remain flat, with margins facing pressure from increased research and development spending.