Sun Pharma Q4 revenue beats analysts’ estimates; US sales decline weighs on margins

Sun Pharmaceutical Industries Ltd reported a mixed set of Q4FY26 results, with revenue growth remaining strong on the back of India and innovative medicines businesses, while EBITDA margin came in below analysts’ estimates amid weakness in the US generics market.

For the quarter ended March 31, 2026, the company posted consolidated sales of ₹14,559.8 crore, up 13.6% year-on-year. Net profit rose 26.2% YoY to ₹2,714 crore.

Revenue came slightly ahead of analysts’ estimates of ₹14,528.1 crore. However, EBITDA at ₹3,954.2 crore was below analysts’ expectations of ₹4,043 crore, while EBITDA margin stood at 27.1% versus analysts’ estimate of 27.8%.

The company’s innovative medicines business — earlier referred to as the specialty segment — continued to remain a major growth driver. Global innovative medicines sales rose 20.1% YoY to US$354 million during Q4FY26 and accounted for 22.2% of overall sales.

Sun Pharma said formulation sales in the US stood at US$459 million during the quarter, down 1.1% year-on-year. The company noted that growth in innovative medicines partially offset weakness in the generics business.

India formulations business remained strong, with domestic sales rising 14.8% YoY to ₹4,835.9 crore in Q4FY26. The India business accounted for 33.2% of total consolidated sales during the quarter. The company also said its market share in India increased from 8.1% to 8.4% as of March 2026.

For the full financial year FY26, Sun Pharma reported consolidated sales of ₹58,220.1 crore, up 11.9% YoY, while EBITDA increased 6.1% to ₹17,731.4 crore. Net profit for the year came in at ₹11,479.4 crore, rising 5% year-on-year.

The innovative medicines business crossed the US$1.4 billion revenue milestone during FY26, with annual sales reaching US$1.42 billion, up 16.4% YoY.

The company continued to invest heavily in research and development, with quarterly R&D spending standing at ₹975.7 crore, or 6.7% of sales. Annual R&D expenditure came in at ₹3,554 crore.

Sun Pharma highlighted progress in its innovative medicines pipeline. Ilumya, being developed for psoriatic arthritis, has a supplemental filing with the US FDA and carries a PDUFA date of October 2026. Fibromun has completed Phase 2 studies in soft tissue sarcoma and glioblastoma, while GL0034 for type 2 diabetes remains under Phase 2 development.

The company currently has approved ANDAs for 552 products in the US market, while filings for 122 ANDAs are awaiting US FDA approval, including 28 tentative approvals. During Q4FY26, the company filed seven ANDAs and received approvals for two.

Sun Pharma’s board proposed a final dividend of ₹5 per share for FY26. Including the interim dividend of ₹11 per share already paid, the total dividend for FY26 stands at ₹16 per share.

Disclaimer: This article is based on company filings and publicly available information. Investors are advised to consult certified financial advisors before making investment decisions.