Sun Pharma stock concerns may be overstated as domestic growth holds

Analysts say Sun Pharma's stock concerns are overdone, with strong domestic growth, broad-based chronic portfolio gains and resilient Q1FY26 earnings offsetting US market worries

In Q1FY26, concerns for the pharma industry revolved around jitters about the US. This came even as the India business growth of major players was steady at 9.7 per cent year-on-year (Y-o-Y), led by price hikes and better volumes.

 

The dip in the US was on account of pricing pressure in Revlimid and also fears about future tariff imposts.

 

Companies are, however, confident they can pass on cost escalation in case of US tariff on generics to customers.

 

Among the top corporates, Sun Pharma grew the fastest in Aug-2025 with 13.7 per cent Y-o-Y growth in the domestic market. Sun