Sun Pharma Q1FY26: Gross sales up 10% YoY

Sun Pharma Q1FY26: Gross sales up 10% YoY

Adjusted net profit stood at ₹29,961 million, an increase of 5.7% YoY

Pharma major Sun Pharmaceutical Industries Ltd on Thursday announced its financial results for the first quarter of FY26, delivering steady growth across key markets and segments. The company reported gross sales of ₹137,861 million, up 10.1% year-on-year (YoY), supported by strong domestic demand, expansion in its Innovative Medicines business, and growth in overseas markets.

Adjusted net profit (excluding exceptional items) stood at ₹29,961 million, an increase of 5.7% YoY. Reported net profit for the quarter came in lower at ₹22,786 million versus ₹28,356 million in the same period last year, impacted by exceptional charges related to litigation settlements and discontinued development programmes.

EBITDA rose 19.2% to ₹43,017 million, with an EBITDA margin of 31.1%. Profit before exceptional items and tax grew 16.6% YoY to ₹39,908 million.

The company’s R&D investments for the quarter stood at ₹9,028.6 million or 6.5% of sales, higher than ₹7,940 million in Q1FY25. Advertising and promotion expenses were not disclosed separately in the results. “Sun had a strong performance during the quarter, where the overall growth reflects steady progress across all our markets,” said Dilip Shanghvi, Chairman and Managing Director. “The U.S. launch of LEQSELVI represents an important step forward, offering a new treatment option for patients with severe alopecia areata and adding a growth engine to our Innovative Medicines business.”

India Formulations - Sales grew 13.9% YoY to ₹47,211 million, contributing 34.2% of consolidated sales. Sun Pharma retained its No. 1 ranking in the Indian pharmaceutical market, with market share rising from 8.0% to 8.3% (AIOCD/Pharmarack MAT June 2025). The company launched five new products in India during the quarter.

US Formulations - Sales stood at US$ 473 million, up 1.4% YoY, contributing 29.3% of consolidated sales. Global Innovative Medicines - Sales rose 16.9% YoY to US$ 311 million, making up 19.3% of consolidated sales. Emerging Markets Formulations - Sales grew 5.1% YoY to US$ 298 million, contributing 18.5% of sales. Rest of World Formulations - Sales increased 15.5% YoY to US$ 219 million, contributing 13.6% of sales. Active Pharmaceutical Ingredients (API) - External API sales were ₹5,404 million, up 9.3% YoY.

The quarter’s reported profit was impacted by exceptional charges of ₹8,180 million, comprising:

• ₹2,876 million for discontinuation of SCD‑044 development.
• ₹5,304 million in settlement-related charges in the US, including legal costs.

An exceptional tax credit of ₹1,005 million partially offset these charges.