Sun Pharmaceutical Industries Ltd, India's largest drugmaker, announced a significant financial uplift for the first quarter of fiscal year 2027, ending June 30, 2026. The company's consolidated net profit surged by 27.04% year-on-year (YoY) to Rs 2,894.79 crore, up from Rs 2,278.63 crore in the corresponding period last year.
Revenue from operations also demonstrated strong growth, climbing 10.46% YoY to Rs 15,299.88 crore, compared to Rs 13,851.40 crore in the prior year. Sales, excluding other operating revenue, increased by 10.1% to Rs 15,183.6 crore. The company reported an EBITDA of Rs 4,417.7 crore, a 2.7% YoY rise, with an EBITDA margin of 28.9%.
Segmental Performance Highlights
- India Formulations: Sales in the domestic market grew by 16% to Rs 5,474.9 crore, contributing 36.1% to the company's total consolidated sales.
- US Formulations: Sales in the US market stood at $427 million, experiencing a 9.7% YoY decline. This was attributed to a decrease in the generics business, partially offset by growth in innovative medicines. The US market accounted for approximately 26.6% of total consolidated sales.
- Emerging Markets: Formulation sales in these markets increased by 4.2% YoY to $311 million, representing 19.4% of consolidated sales.
- Rest of World Markets: Formulation sales reached $218 million, contributing 13.6% to total consolidated sales.
- Global Innovative Medicines: This segment saw a robust 12.8% YoY increase in sales, totaling $351 million, and made up 21.9% of total consolidated sales.
Management Commentary and Future Outlook
Kirti Ganorkar, Managing Director of Sun Pharma, commented on the quarterly performance, stating, "Our performance during the quarter was driven by strong momentum in India as well as Innovative Medicines, which delivered robust growth across the US and international regions." He also highlighted recent semaglutide approvals in India, Brazil, and South Africa as a testament to the company's capabilities in complex peptide products. Ganorkar confirmed that the proposed acquisition of Organon, approved by its shareholders, is on track to close in early 2027.
Following the results, shares of Sun Pharmaceutical Industries were trading marginally lower by 0.54% at Rs 1,989.90 during Friday's fag-end deals.