Sun Pharma Q3 Preview: Profit, revenue and key factors to watch in Dec qtr

Sun Pharma Q3 results preview: Pharma major Sun Pharmaceutical Industries is expected to report moderate top-line growth but weaker profitability in the October–December 2025 quarter (Q3FY26), as per brokerage estimates. Analysts expect domestic formulations, emerging markets, and the global speciality portfolio to remain key growth drivers, aided by new product launches and steady prescription trends. However, softness in the US generics business, coupled with higher spending linked to speciality assets, is expected to weigh on margins, resulting in a year-on-year decline in profit and Ebitda for the quarter.

 

The Mumbai-headquartered company is scheduled to announce its October-December quarter (Q3FY26) results on Saturday, January 31, 2026.

 

According to brokerages tracked by Business Standard, Sun Pharma's net profit is expected to come at ₹3,040 crore, marking a decline of 5.6 per cent Y-o-Y, as against ₹3,220 crore in the year-ago period (Q3FY25). On a quarterly (Q-o-Q) basis, the company's bottom line is projected to fall by around 2.5 per cent.

 

The pharma major's revenue for the quarter under review is expected to increase 6.9 per cent to ₹14,614.7 crore, on average, as compared to ₹13,676 crore in the corresponding quarter of the previous fiscal. On a sequential basis, revenue is expected to grow around 1 per cent compared to ₹14,478 crore in the September 2025 quarter.

 

Brokerages expect the company's earnings before interest, tax, depreciation and amortisation (Ebitda) to decrease around 3.12 per cent to ₹4,061 crore in Q3FY26 compared to ₹4,192 crore in the year-ago period.  ALSO READ | Bajaj Auto Q3 Preview: PAT may climb up to 21.3% to ₹2,558 cr YoY; Rev 21%

Here's what analysts expect from Sun Pharma Q3FY26 results:

Kotak Institutional Equities

In the quarter under review, Kotak Institutional Equities expects the company's overall sales to grow 5 per cent Y-o-Y, and decline around 1 per cent on a Q-o-Q basis. 

 

Analysts expect $478 million from US sales (down 4 per cent Q-o-Q) in Q3FY26, primarily due to lower gRevlimid sales. For the global speciality business, they expect 5 per cent Q-o-Q sales growth to $348 million ( up 6 per cent Y-o-Y, adjusted for milestone income of $45 million in Q3FY25) in Q3FY26, led by a pick-up in Leqselvi, aided by prescription uptick in Cequa, Winlevi and Odomzo. The brokerage expects 11 per cent Y-o-Y growth in India and 6 per cent Y-o-Y growth in the rest of the world.

Motilal Oswal Financial Services (MOFSL)

According to analysts at MOFSL, the company is expected to report 12 per cent Y-o-Y growth in the December quarter, supported by strong performance in domestic and emerging markets, along with incremental growth in the US business. The launch of Unloxcyt in Q3 is likely to provide additional momentum to US growth.

 

MOFSL expects the company to continue to outperform the industry, with domestic formulation (DF) sales rising 13 per cent Y-o-Y during the quarter, driven by new product launches such as Ilumya. Emerging markets and Rest of the World (EM/RoW) are projected to deliver healthy growth of 18 per cent and 14 per cent Y-o-Y, respectively, aided by the addition of branded generics and innovative products.  ALSO READ | Tata Motors Q3 Preview: Profit, revenue and key factors to watch in Dec quarter

HDFC Securities

According to HDFC Securities, Sun Pharma’s US generics business is expected to grow around 5 per cent Q-o-Q, while speciality sales are likely to remain strong with about 13 per cent Y-o-Y growth. The brokerage expects the India business to post 12 per cent Y-o-Y growth. While gross margins are expected to remain steady, higher costs, driven by a gradual increase in speciality asset-related spending, are likely to offset gains, resulting in largely flat Ebitda margins.  Disclaimer: The views or investment tips expressed by the brokerage in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.