Sun Pharma Q4 FY25 Earnings Results Out: Share Price Down 2.83%

Sun Pharma's share price was down 2.83% and was trading at ₹1,670 at 10:42 AM. This followed its Q4 FY25 earnings results announcement. The company’s revenue for the quarter has risen by 8.1% to ₹12,958.8 crore, up from ₹11,982.9 crore in the same quarter last year. The US market contributed over 31.4% to the consolidated revenue in Q4.

Sun Pharma Q4 FY25 Earnings Results Versus Street Expectations

Sun Pharma’s net profit came in at ₹2,153.9 crore, down 19% from ₹2,658.7 crore a year earlier. This was a major miss, as market participants had expected a 10% increase in profitability.  

On the positive side, the company’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) recorded a 22.4% growth. The ₹3,715.9 crore beat the street expectations of ₹3,618 crore. The company’s margins also improved to 28.7% from 25.3% last year, above the expected 27.7%.

You might like: Mamaearth Parent Honasa Q4 FY25 Earnings Results Out: Profit Dips 18%

Sun Pharma Share Price in Focus in Anticipation of Dividend Declaration

The board of directors has recommended a final dividend of ₹5.50 per equity share for FY25. This is subject to approval at the upcoming annual general meeting.

Global and US Market Performance

The company’s seniormost executives have stated that speciality sales reached US$1.26 billion this year. During the quarter, Sun Pharma launched two new generic drugs in the US and plans to introduce Leqselvi in Q2 of FY26. The company is also planning to shift the manufacturing of its Ilyuma product to the US over the next three years.

Future Outlook and Investments

Looking ahead, Sun Pharma expects consolidated revenue to grow in the mid-to-high single digits in FY26. R&D expenses are expected to remain between 8% of sales.

The company also announced a US$100 million investment to develop new speciality products, underlining its focus on creating a strong and unique product line.

Conclusion 

With continued investment in R&D and speciality products, Sun Pharma is positioning itself for sustainable future growth. However, the sharp decline in net profit highlights ongoing challenges in meeting market expectations. The company’s future performance will now depend on how effectively it executes its growth and expansion strategies.
 
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.