Weak guidance, higher costs to weigh on Sun Pharma's FY26 outlook

Sun Pharma's FY26 revenue guidance disappoints Street expectations as higher specialty product costs in the US prompt brokerages to cut earnings estimates

Despite a healthy performance in the fourth quarter of financial year 2024-25 (Q4FY25), the stock of India’s largest listed pharma company, Sun Pharmaceutical Industries (Sun Pharma), was under pressure on Friday due to a muted guidance. The company has guided for a high single-digit revenue growth for FY26, which is below what the Street was working with. This coupled with higher expenses related to the launch of specialty products in the US market has prompted brokerages to cut their earnings estimates for FY26 by 4-8 per cent. The stock was the only loser in the Sensex, shedding 2 per cent,