MUMBAI–Sun Pharmaceutical Industries Limited reported a 36.2% decline in consolidated net profit for the quarter ended September 2026, as a one-time loss of Rs 1,269 crore weighed on earnings despite double-digit revenue growth and strong performance in its domestic pharmaceutical business.
India’s largest drugmaker posted a consolidated net profit of Rs 1,988.53 crore for the second quarter of fiscal 2027, according to a stock exchange filing.
Revenue from operations increased 11.9% year over year to Rs 16,198.71 crore during the July-September quarter, compared with Rs 14,478.31 crore in the corresponding period last year.
Excluding exceptional items, profit before tax rose 6.3% to Rs 4,428.2 crore, indicating growth in underlying earnings despite the decline in reported net profit.
Operating performance also improved, although profitability margins narrowed.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 4.8% to Rs 4,744 crore from Rs 4,527 crore a year earlier.
However, the company’s EBITDA margin declined to 29.3% from 31.3%, reflecting pressure on operating profitability.
Sun Pharma continued investing in research and development, spending Rs 778.4 crore during the quarter, equivalent to 4.8% of its sales.
The company’s domestic pharmaceutical business remained a major growth driver, with formulation sales in India increasing 17.3% year over year to Rs 5,552.3 crore from Rs 4,735 crore.
India accounted for 34.5% of Sun Pharma’s consolidated sales during the quarter, underscoring the importance of its home market to overall revenue growth.
The company also expanded its share of the Indian pharmaceutical market to 8.6% from 8.3%, according to the Pharmarack MAT September 2026 report.
Performance in the United States was weaker, with formulation sales declining 8.2% year over year to $455 million.
The U.S. market contributed approximately 27% of Sun Pharma’s consolidated sales during the quarter, making it one of the company’s largest international markets.
Sales in emerging markets continued to expand, with formulation revenue increasing 7.6% to $350 million. These markets accounted for 20.7% of consolidated sales.
In other international markets, formulation sales rose 3.1% to $241 million, representing 14.3% of total consolidated sales.
The contrasting regional results highlighted Sun Pharma’s reliance on strong domestic demand and emerging markets to offset weaker performance in the United States.
Despite the sharp decline in reported net profit, investors responded positively to the company’s revenue growth and operating performance.
Sun Pharma shares were trading 3.99% higher at Rs 1,833.30 on the Bombay Stock Exchange during midday trading Friday.
The quarterly results reflect continued expansion in Sun Pharma’s core pharmaceutical operations, even as exceptional charges and weaker U.S. sales affected overall profitability. (Source: IANS)
