Sun Pharmaceutical Industries announced a significant 27 per cent year-on-year jump in consolidated net profit for Q1FY27, reaching Rs 2,894.7 crore, propelled by strong performance in the Indian market and robust growth in its innovative medicine portfolio across global markets.
Key Points
- Sun Pharmaceutical Industries reported a 27 per cent year-on-year increase in consolidated net profit to Rs 2,894.7 crore for Q1FY27.
- Revenue from operations grew by 10 per cent to Rs 15,299.8 crore, attributed to strong momentum in India and robust growth in innovative medicines.
- The company expects to maintain its leadership in generic semaglutide in India and is prepared for launches in South Africa and Brazil.
- The US formulations business declined 9.7 per cent due to generics portfolio weakness, partially offset by innovative medicines like Ilumya, Cequa, and Odomzo.
- The proposed acquisition of Organon has been approved by shareholders and is on track to close in early 2027, with regulatory filings completed.
Sun Pharmaceutical Industries on Friday reported a 27 per cent year-on-year (Y-o-Y) increase in consolidated net profit, reaching Rs 2,894.7 crore for the first quarter of financial year 2026-27 (Q1FY27).
The revenue from operations also grew by 10 per cent to Rs 15,299.8 crore.
The rise in the profits was attributed to strong momentum in India and robust growth in innovative medicines across the US and international markets.
Sun Pharma’s results were announced during the market hours.
Its shares fell by 0.5 per cent, ending the day’s trade at Rs 1,989.35 per share on the BSE.
Performance Highlights and Strategic Focus
Kirti Ganorkar, managing director (MD) of Sun Pharma, said: "Performance during the quarter was driven by strong momentum in India as well as by innovative medicines.
Recent semaglutide approvals in India, Brazil, and South Africa underscore our capabilities in developing complex peptide products for patients globally.
Organon shareholders have approved the proposed acquisition by Sun, which is on track to close in early 2027."
During the post-earnings call, Ganorkar said the company expects to maintain its leadership in generic semaglutide in India, where it has become the second-largest generic player since launching the product in March.
He added that Sun Pharma is well-prepared to meet demand, with active pharmaceutical ingredients (APIs), formulations, and device components all secured in-house or through supplier tieups, supporting launches in India, South Africa, and Brazil.
US Generics Business Faces Headwinds
The company's US formulations business declined 9.7 per cent Y-o-Y to $427 million in Q1FY27, primarily due to weakness in its generics portfolio, including lenalidomide.
Growth in innovative medicines, led by Ilumya (used in treating moderate-to-severe plaque psoriasis), Cequa (used in treating dry eye disease), and Odomzo (targeted cancer medication), partially offset the decline.
The US business contributed 26.6 per cent to the company's consolidated sales during the quarter.
Global innovative medicine sales rose 12.8 per cent Y-o-Y to $351 million in Q1FY27, accounting for 21.9 per cent of consolidated sales.
Richard Ashcroft, chief executive officer (CEO), North America, said the US generics business continued to face pressure from lenalidomide erosion and increased competition in certain products, though new product launches are expected to support growth.
He also said newly launched innovative medicines Leqselvi (used in treating adults with severe alopecia areata) and Unloxcyt (cancer immunotherapy drug) continue to see rising physician adoption, with Leqselvi crossing 1,000 prescribers in June and Unloxcyt being added to more cancer centre formularies.
API Segment and Organon Acquisition Update
Driven by supply to its formulations business and global third-party clients, the API segment recorded external sales of Rs 597.2 crore in Q1FY27, up 10.5 per cent Y-o-Y.
On the Organon transaction, Dilip Shanghvi, chairman, said regulatory filings across various markets have been completed, with approvals already received in some countries, and that an integration management office has been working on day-one preparedness. He said the acquisition is expected to close in Q4FY27.
