Sun Pharmaceutical Industries Limited reported a 10.1% increase in consolidated sales for the first quarter of FY27, reaching INR 1,51,836 million. The company highlighted growth in its Global Innovative Medicines business, driven by products like ILUMYA, ODOMZO, and CEQUA, and a strong performance in the India formulations business with a 16% growth. Key updates were provided on new product launches and the ongoing Organon acquisition.
Sun Pharma Reports Strong Q1 FY27 Earnings
Sun Pharmaceutical Industries Limited announced its financial results for the first quarter of FY27, ending June 30, 2026. The company recorded consolidated sales of INR 1,51,836 million, marking a significant year-on-year growth of 10.1% compared to Q1 FY26. This performance reflects robust growth across key business segments.
Financial Highlights
Gross margin stood at 80.5% for the quarter, an improvement from the same period last year, attributed to a better product mix. EBITDA for the quarter was INR 44,177 million, a 2.7% increase year-on-year. The reported net profit after tax for Q1 FY27 was INR 28,948 million, with adjusted net profit at INR 30,894 million. Earnings per share (EPS) were INR 12.10. Exceptional items for the quarter included a charge of INR 1,617 million related to the Organon acquisition costs.
Business Performance Updates
Global Innovative Medicines
The Global Innovative Medicines business saw sales increase by 12.8% to USD 351 million, contributing 21.9% of total sales. Growth was driven by performance in both U.S. and ex-U.S. markets, with notable contributions from ILUMYA, ODOMZO, and CEQUA. The company also presented updated trial data for Unloxcyt at the ASCO Annual Meeting, showing durable benefit and a manageable safety profile.
India Business
Sales for the India formulations business reached INR 54,749 million, a 16% growth year-on-year. This segment accounted for 36.1% of the company’s total consolidated sales for the quarter. Sun Pharma also became the number 2 generic semaglutide injectable player in India, offering an auto-injector with positive feedback from healthcare professionals.
U.S. Business
The U.S. business reported sales of USD 427 million, a decline of 9.7%. This was primarily due to lower sales in the generic business, impacted by Lenalidomide erosion and increased competition. The Innovative Medicines portfolio in the U.S. continued to grow. Sun Pharma launched five new generic products in the U.S. during the quarter.
Strategic Developments
The company is advancing the acquisition of Organon, which has received shareholder approval and is on track to close by early 2027, subject to customary closing conditions. Sun Pharma also received approvals to manufacture and market the generic version of semaglutide injection in Brazil and South Africa. Consolidated investments in R&D for Q1 FY27 were INR 8,264 million, representing 5.4% of sales, with innovative R&D accounting for 30% of the total spend.
Source: BSE
