Sun Pharma Q2 net profit rises 2.5% to ₹3,118 crore on India, EM growth

Sun Pharma's Q2FY26 profit rose to Rs 3,118 crore as India, emerging markets, and rest of world drove growth; US revenues fell 4.1% despite strong gains in innovative medicines

Sun Pharmaceutical Industries, India’s largest formulation player by market share and a leading exporter to the US markets, posted an 8.93 per cent growth in revenues to ₹14,478 crore in Q2FY26, while the net profit grew by 2.56 per cent year-on-year (Y-o-Y) to ₹3,118 crore.

 

The jump was led by growth in India, emerging markets and the rest of the world. However, US revenues were down 4.1 per cent.

 

The results beat Bloomberg analyst estimates who had forecast revenues of ₹14,244 crore with adjusted net income of ₹2,881 crore. The stock was down marginally at the end of day’s trade most likely due to the US business overhang.

 

 

Sales of global innovative medicines (known as specialty medicines earlier) stood at $333 million, up 16.4 per cent and accounted for 20.2 per cent of sales. For the first half, global innovative medicine sales were $644 million, up by 16.6 per cent over the same period last year. During the quarter, Leqselvi was launched in the US for the treatment of severe alopecia areata and Sun Pharma claimed it has received encouraging response from the prescribers and patients.

 

The Ebitda for the quarter was ₹4,527 crore, up 14.9 per cent, with a resulting Ebitda margin of 31.3 per cent. R&D investment during the quarter was 5.4 per cent of sales or around ₹782 crore. Innovative R&D accounted for 38 per cent of total R&D spend and stands at around 10 per cent of global innovative medicine sales for the quarter.

 

On a sequential basis, revenues were up 4.53 per cent, while net profit grew by 36.83 per cent.

 

Kirti Ganorkar, managing director, Sun Pharma said, “India, emerging markets and rest of world led our growth for the period. US sales of innovative medicines have surpassed generics for the first time during the quarter.”

 

India formulations sales were ₹47,348 crore, up 11 per cent, and accounting for 32.9 per cent of consolidated sales for the quarter. For the first half of the year, sales were up 12.4 per cent to ₹9,455 crore.

 

Formulation sales in the US were $496 million, registering a decline of 4.1 per cent. Sun Pharma said that the decline in the generics business was offset by growth in innovative medicines. US sales accounted for approximately 30.1 per cent of total consolidated sales. For the first half, sales were $968 million.

 

“We are awaiting USFDA decision on Unloxcyt (cancer drug) updated labeling and remain on track to launch the drug in the US in the second half of FY26. We are also filing Ilumya for psoriatic arthritis (indication) during the second half of FY26,” Dilip Shanghvi, founder and executive chairman of Sun Pharma, said in the analyst call post results.

 

The company expects semaglutide (anti-diabetes and obesity drug) generic to be ready for launch in the first wave once the patent expires early next year (around March).

 

Sun Pharma said that it plans to grow both the generics and the specialty (innovative) business. It also clarified that while they have a manufacturing footprint in the US, they are assessing any possible expansion of that in future.

 

Shanghvi also told analysts that they are excited with the early data they have for diabetes and NASH for their inhouse innovative GLP-1 molecule (GL0034), and that global phase 2 clinical trials will start shortly.

 

Emerging markets (EM) formulations sales were $325 million for Q2FY26, up by 10.9 per cent and accounted for 19.7 per cent of total consolidated sales. Rest of World (ROW) markets formulation sales were $234 million for Q2FY26, up by 17.7 per cent and accounted for 14.2 per cent of total consolidated sales for the quarter.

 

Sun Pharma continues to be India’s number one Pharma Company with market share increasing from 8 per cent to 8.3 per cent, according to Pharmarack MAT Sept-2025 report. The company launched nine new products during the quarter and 15 products year-to-date.

 

As for H1FY26, sales were up 9.3 per cent, while adjusted net profit (excluding the exceptional items) was up 4.1 per cent. Global innovative medicines sales stood at $644 million, up 16.6 per cent and accounting for 19.8 per cent of H1 sales.