In this modern environment, productivity has become an indicator of the progress of a country. It may be treated as a key to prosperity. Productivity can be denoted as a ratio of the monetary value of the output to the monetary value of the input which shows the actual performance of a unit. Higher the productivity means a more efficient use of the resources in an organisation. Productivity may include material productivity, labour productivity and overhead productivity and also the overall productivity. The Material Productivity of pharmaceutical sector companies included in Nifty 50 has been analysed in the present study. The sector consists of Cipla Ltd., Dr. Reddy’s Laboratories Ltd., Lupin Ltd. and Sun Pharmaceutical Industries Ltd. Material productivity of eight years has been studied in the present study from 2008-09 to 2015-16. Both intra-sector and inter-sector hypotheses have been tested and results have been drawn from it. For intra-sector hypothesis, an analysis has been drawn with the help of Chi-Square Test and it has been observed that in all companies except in Sun Pharmaceutical Industries Ltd. null hypothesis has been accepted, which shows that the material productivity ratios of the sampled company for the study period are approximately equal. In the case of Butin Sun Pharmaceutical Industries Ltd an alternate hypothesis is accepted. In inter-sector hypothesis, analysis is drawn with the help of Kruskal Wallis Rank Sum Test popularly known as H Test and it has been observed that the null hypothesis is rejected, which means that the material productivity ratios between the pharmaceutical sector companies included in Nifty 50 differ significantly. The reason for the increase or decrease in the material productivity may be due to increase or decrease in the output or input or the components associated with productivity. For improving the material productivity it is recommended to improve the output, input or components of output or input.