Sun Pharma Q2 preview: Profit may dip YoY despite revenue growth; details

Sun Pharma Q2 results preview: Pharma major Sun Pharmaceutical Industries is likely to report stable revenue growth but muted profitability in results for the September 2025 quarter (Q2FY26), weighed down by higher costs related to its US speciality portfolio. According to estimates by multiple brokerages, the company’s revenue is likely to rise around 7 per cent year-on-year, driven by strong performance in domestic and speciality businesses, while net profit may decline marginally due to elevated promotional and R&D expenses.

 

The Mumbai-headquartered company is scheduled to announce its July–September quarter (Q2FY26) results on Wednesday, November 5, 2025.

 

According to brokerages tracked by Business Standard, Sun Pharma's net profit is expected to come at ₹2,843.4 crore, marking an average decline of 3 per cent Y-o-Y, as against ₹2,932.3 crore in the year-ago period (Q2FY25). On a quarterly (Q-o-Q) basis, the company's bottom line is projected to fall by an average of 5 per cent.

 

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The pharma major's revenue for the quarter under review is expected to increase 7.3 per cent to ₹14,257.2 crore, on average, as compared to ₹13,291.4 crore in the corresponding quarter of the previous fiscal. On a sequential basis, revenue is expected to grow around 3 per cent compared to ₹13,851.4 crore in the June 2025 quarter.

 

Brokerages expect the company's earnings before interest, tax, depreciation and amortisation (Ebitda) to increase around 3 per cent to ₹3,934.3 crore in Q2FY26 compared to ₹3,810.9 crore in the year-ago period.  CATCH STOCK MARKET LIVE UPDATES TODAY

Here's what analysts expect from Sun Pharma Q2FY26 results:

Kotak Institutional Equities

Kotak Institutional Equities expects Sun Pharma’s consolidated revenue to rise 7 per cent Y-o-Y and 3 per cent Q-o-Q in Q2FY26. The brokerage estimates US sales at $486 million (+3 per cent Q-o-Q) and projects the global speciality segment to grow 15 per cent Y-o-Y to $330 million (+6 per cent Q-o-Q), supported by the launch of Leqselvi and higher prescriptions for Ilumya, Cequa, Winlevi, and Odomzo.

 

India sales are expected to increase 9 per cent Y-o-Y, while growth in RoW/emerging markets is pegged at 11 per cent Y-o-Y. Kotak expects gross margins falling 90 bps Q-o-Q to 78.8 per cent, mainly due to lower gRevlimid sales and a weaker domestic mix. R&D expenses are projected at 6.5 per cent of sales (+100 bps Q-o-Q).

 

On profitability, the firm expects a 4 per cent Q-o-Q decline in Ebitda to ₹39 billion (+2 per cent Y-o-Y), impacted by higher commercialisation costs for Leqselvi. Ebitda margins are likely to come in at 27.4 per cent, down 130 bps Y-o-Y and 200 bps Q-o-Q.

HDFC Securities

According to HDFC Securities, Sun Pharma’s US generics business is likely to remain stable on a sequential basis, while speciality segment sales are expected to post robust year-on-year growth of around 14 per cent. The brokerage anticipates India business growth of about 11 per cent Y-o-Y. Although gross margins are expected to stay steady, higher costs - particularly related to speciality assets - may result in a slight Ebitda margin decline.

Nuvama Institutional Equities

According to Nuvama Institutional Equities, Sun Pharma is expected to report Y-o-Y growth of 7 per cent in revenue, 9 per cent in Ebitda, and 2 per cent in PAT for Q2FY25. Ebitda margins are projected at 30.4 per cent, reflecting a 70 bps expansion despite higher promotional spending for Leqselvi in the US. Nuvama expects 10 per cent Y-o-Y growth in Sun Pharma’s domestic business, while the global innovative segment could generate $330 million in revenue, supported by Ilumya, Odomzo, Cequa, and Winlevi. Given that Leqselvi is newly launched, its contribution is not expected to be significant at this stage.