Sun Pharma Q2 results: Net profit falls 36% to Rs 1,989 cr on one-time hit, revenue up 12%; stock jumps
Sun Pharmaceutical Industries Q2 FY27 Results: Consolidated net profit fell 36.2% to Rs 1,989 crore amid exceptional charges, while revenue rose 11.9% to Rs 16,198.7 crore. India sales grew 17.3%, but US formulations sales declined 8.2%.
Sun Pharmaceutical Industries Ltd on Friday reported a 36.2 percent year-on-year decline in consolidated net profit to Rs 1,989 crore for the quarter ended September 2026 (Q2 FY27), due to exceptional charges related to its proposed acquisition of Organon & Co and a settlement in a US antitrust litigation case. The pharmaceutical company's consolidated revenue from operations rose 11.9 percent year-on-year to Rs 16,198.7 crore during the July-September quarter, supported by growth in its India and emerging markets businesses, even as US formulation sales declined.
Sun Pharma's adjusted net profit stood at Rs 3,162 crore, up 1.4 percent year-on-year, compared with Rs 3,118 crore in the corresponding quarter last year. Its earnings before interest, tax, depreciation and amortisation (EBITDA) increased 4.8 percent year-on-year to Rs 4,743.9 crore, with an EBITDA margin of 29.3 percent. Profit before exceptional items and tax rose 6.3 percent to Rs 4,428.2 crore.
Sun Pharma stock jumped and was trading at Rs 1,835 on NSE in the afternoon session, up 4.2 percent from the previous close. The shares are up 4.4 percent year-to-date, outperforming Nifty 50, which has fallen 11.9 percent in the same period. Sun Pharma's India formulations business reported sales of Rs 5,552.3 crore, registering year-on-year growth of 17.3 percent. The domestic business accounted for 34.5 percent of consolidated sales during the quarter.
In contrast, US formulations sales declined 8.2 percent year-on-year to $455 million, accounting for approximately 27 percent of consolidated sales. Emerging markets formulations sales increased 7.6 percent to $350 million, contributing 20.7 percent to consolidated sales. Global innovative medicines sales stood at $356 million, up 6.9 percent year-on-year, and accounted for 21.1 percent of total sales.
Commenting on the quarterly performance, Kirti Ganorkar, Managing Director of Sun Pharma, said, "Our performance during the quarter was driven by strong momentum in India, Emerging Markets and Rest of World." According to the notes accompanying its financial results, Sun Pharma recognised acquisition-related expenses of Rs 346.16 crore during the September quarter in connection with its definitive agreement to acquire all outstanding shares of Organon & Co.
These expenses included diligence, legal and filing fees, commitment fees, syndication fees and other transaction costs. The company said additional acquisition-related costs are expected in subsequent periods. Sun Pharma also disclosed that its subsidiaries, Sun Pharmaceutical Industries Inc., Taro Pharmaceutical Industries Ltd and Taro Pharmaceuticals USA Inc., signed a settlement agreement on September 10, 2026, with a plaintiff in the In re Generic Pharmaceuticals Pricing Antitrust Litigation in the Eastern District of Pennsylvania, US.
The settlement amounted to Rs 922.67 crore, including legal costs. A corresponding tax benefit of Rs 95.34 crore was recorded during the September quarter. On the product development front, Sun Pharma said Ilumya has received US approval for treating adults with active psoriatic arthritis, while Unloxcyt received a preferred recommendation from the National Comprehensive Cancer Network (NCCN) for advanced cutaneous squamous cell carcinoma (aCSCC).
The company also strengthened its cardiovascular portfolio through the licensing of lerodalcibep, a PCSK9 inhibitor, for markets outside the US and China. Pre-launch activities have commenced across the European Union. Sun Pharma's research and development expenditure stood at Rs 778.4 crore during the quarter, representing 4.8 percent of sales.
