Sun Pharma reported a 27% YoY rise in June-quarter net profit to ₹2,895 crore.
Revenue grew 10.5% to ₹15,300 crore, led by strong growth in India and innovative medicines.
The company said its proposed acquisition of Organon remains on track for completion in early 2027.
Sun Pharma Q1 Profit Climbs 27% YoY to ₹2,895 Cr Despite Weak US Generics Business
The drugmaker reported a 27% rise in June-quarter profit as growth in its India formulations and innovative medicines businesses offset a decline in US formulations sales
Summary
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Sun Pharmaceutical Industries on Friday reported a 27% year-on-year (YoY) increase in consolidated net profit to ₹2,895 crore for the quarter ended June 30, compared with ₹2,279 crore a year earlier.
Revenue from operations rose 10.5% YoY to ₹15,300 crore, while adjusted net profit increased 3.1% to ₹3,089 crore. EBITDA stood at ₹4,418 crore, up 3% from the year-ago period, with the EBITDA margin at 28.9%.
The drugmaker said the quarter's performance was driven by strong growth in its India formulations business and global innovative medicines portfolio, which helped offset weaker sales in the US formulations business amid continued pricing pressure and competition.
India Business Remains the Growth Engine
Sales from Sun Pharma's India formulations business rose 16% YoY to ₹5,475 crore, accounting for 36.1% of the company's consolidated revenue during the quarter.
The company said it continued to retain its position as India's largest pharmaceutical company. According to Pharmarack MAT June 2026 data, its market share increased to 8.5% from 8.2% a year earlier.
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Sun Pharma also retained the top position in prescriptions across 12 doctor specialties, according to SMSRC data for March-June 2026. The company launched five new products in the domestic market during the quarter.
US Business Under Pressure, Organon Deal on Track
US formulations sales declined 9.7% YoY to $427 million, reflecting continued pressure in the generics business, including the loss of limited exclusivity for lenalidomide.
Meanwhile, global innovative medicines sales grew 12.8% to $351 million, contributing about 22% of total sales. The company highlighted recent approvals for semaglutide products in India, Brazil and South Africa as a sign of its capabilities in developing complex peptide medicines.
Research and development spending during the quarter stood at ₹826 crore, or 5.4% of sales. Sun Pharma filed three abbreviated new drug applications (ANDAs) and received approvals for six ANDAs during the period.
The company also said the reported profit included an exceptional charge of ₹204 crore, comprising acquisition-related costs linked to the proposed Organon acquisition and expenses related to the implementation of India's new labour codes.
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Commenting on the results, Managing Director Kirti Ganorkar said, "Our performance during the quarter was driven by strong momentum in India as well as Innovative Medicines, which delivered robust growth across the U.S. and international regions."
He added that recent semaglutide approvals in India, Brazil and South Africa highlight the company's capabilities in developing complex peptide products. Ganorkar also said Organon shareholders have approved the proposed acquisition, which "is on track to close in early 2027," subject to the remaining approvals and conditions.