Sun Pharmaceutical Industries delivered a robust performance for the December quarter, exceeding market expectations with a significant jump in profitability and revenue. The Mumbai-based pharmaceutical giant reported a consolidated net profit of ₹3,369 crore for Q3FY26, marking a 16% increase from the ₹2,903 crore recorded in the same period last year.
Financial Performance Exceeds Street Estimates
The company's revenue from operations rose by 15.1% year-on-year to ₹15,469 crore. This growth outpaced the projections from a Bloomberg poll, which had estimated revenue at ₹14,792 crore and profit after tax at ₹3,035 crore for the quarter. Sun Pharma's earnings before interest, taxes, depreciation, and amortization (Ebitda) stood at ₹4,948.5 crore, up 23.4%, with the margin improving to 31.9% from 29.3% a year ago.
Steady Growth Across Key Business Segments
Sun Pharma attributed its strong results to well-rounded growth across all business divisions. The company saw steady revenue expansion in its branded business in India and emerging markets, as well as in global innovative sales. This growth helped offset a decline in sales of Revlimid, a key product.
Kirti Ganorkar, Managing Director of Sun Pharma, stated, "Our results this quarter demonstrate well‑rounded growth across all businesses, prominently led by our Branded businesses in India, Emerging Markets and Global Innovative Medicines. Our innovative product offering has expanded further with the launch of Unloxcyt in the US and the introduction of Ilumya in India."
Regional Sales Breakdown
The company's performance varied across different regions:
- US Sales: US generic sales were $477 million, marginally up by 0.6% year-on-year. Innovative medicines continued to grow, offsetting the decline in the generics business. US sales accounted for approximately 27.5% of total consolidated sales.
- Global Innovative Medicines: Sales in this segment reached $423 million for Q3FY26, including a milestone income of $55 million. Excluding this milestone, global innovative medicine sales grew by 13.2% and accounted for 21.2% of total sales. Notably, innovative sales outpaced generic sales in the US for the first time in the September quarter, indicating a strategic shift towards novel drugs.
- India Sales: Domestic sales grew by 16.2% to ₹4,999 crore, outperforming the overall Indian pharmaceutical market. India sales represented 32.3% of total sales. According to Pharmarack's MAT December 2025 report, Sun Pharma's market share in India increased from 8.1% to 8.4%.
Regulatory Developments and Future Outlook
Sun Pharma faces uncertainty regarding the potential impact of the most-favoured nation (MFN) drug pricing norms being enforced in the US. These norms, part of the Trump administration's efforts to localize and reduce healthcare costs, require drug manufacturers to match the lowest price offered for a drug in other developed countries. The company has not yet announced any specific impact from these regulations.
In a recent development, Sun Pharma received approval from the central regulator to launch semaglutide for weight management. The company plans to launch this product once its patent expires in March.
Market Response and Share Price Movement
Sun Pharma's share price closed at ₹1,595.00 on the National Stock Exchange (NSE) on Friday, showing a marginal increase of 0.36%. This movement reflects investor confidence following the strong quarterly results.
The company's performance highlights its resilience and strategic focus on innovation, even as it navigates regulatory challenges and market dynamics. With growth driven by both domestic and international segments, Sun Pharma continues to strengthen its position as a leading player in the global pharmaceutical industry.
