Sun Pharma Q1 FY26 Earnings Results: Net Profit Falls 20% to ₹2,279 Crore, Revenue Grows 9%

On July 31, 2025, Sun Pharmaceutical Industries Ltd reported its financial results for the quarter ended June 2025 (Q1 FY26). The company saw a 20% drop in net profit to ₹2,279 crore compared to ₹2,835 crore in the same period last year. This decline was mainly due to one-time exceptional expenses. However, net profit rose 6% sequentially from ₹2,150 crore in the March 2025 quarter.

Sun Pharma Q1 FY26 Earnings: Revenue and Operational Growth

Sun Pharma’s consolidated revenue increased 9% year-on-year to ₹13,851 crore in Q1 FY26, up from ₹12,653 crore in Q1 FY25. This growth was driven by strong sales in India, the US, and other international markets. Gross sales reached ₹13,786.1 crore, marking a 10.1% increase YoY.

EBITDA and Margins Improve

The company’s EBITDA rose by 19.2% to ₹4,302 crore compared to the previous year. EBITDA margin also improved to 31%, up from 28.5% last year, reflecting better operational efficiency.

Exceptional Items Impact Profit

Sun Pharma faced exceptional charges totalling ₹818 crore during the quarter. These included a ₹288 crore write-off related to the discontinuation of the SCD-044 drug development program and a ₹530 crore provision for a legal settlement in the US. Excluding these items, the adjusted net profit increased 5.7% YoY to ₹2,996.1 crore.

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Segment-wise Highlights

• India Formulations: ₹4,721.1 crore, up 13.9% YoY
• US Formulations: $473 million, up 1.4% YoY
• Global Innovative Medicines: $311 million, up 16.9%, contributing 19.3% of total revenues

Sun Pharma Share Price Movement

As of August 1, 2025, at 10:12 am IST, Sun Pharmaceutical Industries share price are trading at ₹1,644.90, down by ₹61.80 or 3.62% for the day. The stock opened at ₹1,690.00 and touched an intraday high of ₹1,695.00 and a low of ₹1,608.00. Sun Pharma has a market capitalisation of ₹3.95 lakh crore and a price-to-earnings (P/E) ratio of 36.11. The company offers a dividend yield of 0.97%, with the most recent quarterly dividend declared at ₹3.99 per share. Over the past 52 weeks, the stock has recorded a high of ₹1,960.35 and a low of ₹1,553.05

Conclusion

Despite a decline in reported net profit due to exceptional costs, Sun Pharma delivered a solid operational performance in Q1 FY26, with strong revenue growth, improved margins, and solid gains in both domestic and global markets. This reflects the company's underlying business strength and long-term growth strategy.

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