Sun Pharmaceutical Industries (SUNPHARMA) Q1 26/27 earnings summary

Executive summary

• Q1 FY 2027 consolidated sales reached INR 151,836 million, up 10.1% year-over-year, with strong growth in India and innovative medicines offsetting U.S. generics decline.

• Net profit after tax was INR 28,948 million; adjusted net profit was INR 30,894 million, with EPS at INR 12.10.

• EBITDA was INR 44,177 million, up 2.7% year-over-year, with an EBITDA margin of 28.9%.

• Organon acquisition received shareholder approval and is expected to close by early 2027, with related costs impacting exceptional items.

• Growth was driven by strong India and Innovative Medicines performance, partially offset by a decline in US generics.

Financial highlights

• Gross margin improved to 80.5% from 79.6% year-over-year due to a better product mix.

• Earnings per share (EPS) rose to INR 12.10 from INR 9.5 year-over-year.

• R&D investment was INR 8,264 million, representing 5.4% of sales.

• Net cash position at $3.4 billion consolidated.

• Adjusted net profit margin improved to 20.3%.

Outlook and guidance

• Management maintains high single-digit revenue growth guidance for FY 2027, despite Q1 growth of 10.1%.

• Organon acquisition is on track to close in early 2027, with integration planning underway.

• Continued focus on Innovative Medicines and global expansion, with recent semaglutide approvals in India, Brazil, and South Africa.

• Tax rate expected to remain in the current range until Organon deal closes.

• Exchange rate impact expected to be positive for revenue but will be monitored.