Sun Pharma Q1 FY27 Sales Grow 10.1% to ₹15,183.6 Crore; Net Profit at ₹2,894.8 Crore
Sun Pharma reported Q1 FY27 sales of ₹15,183.6 crore, up 10.1%. Net profit stood at ₹2,894.8 crore. The company incurred ₹161.7 crore in acquisition costs for Organon, which is expected to close by early 2027. India formulations grew 16% to ₹5,474.9 crore. US business sales declined 9.7% to $427 million.
The announcement details significant financial performance metrics for the quarter, including sales and profit figures, and provides updates on key strategic initiatives like the Organon acquisition, which are material to the company's future outlook.
The company reported strong sales growth of 10.1% and improved gross margins, indicating a positive operational performance. Despite some segment-specific challenges and acquisition-related costs, the overall financial results and strategic progress on the Organon acquisition are positive.
Sun Pharmaceutical Industries Limited announced its financial results for the first quarter of FY27, reporting a consolidated sales growth of 10.1% to ₹15,183.6 crore (₹1,51,836 million) compared to Q1 FY26. The gross margin improved to 80.5% due to a better product mix. EBITDA for the quarter stood at ₹4,417.7 crore (₹44,177 million), a 2.7% increase year-on-year, though EBITDA margins were slightly lower at 28.9% compared to the previous year, which had a benefit from Lenalidomide sales. Adjusted for this, EBITDA margins were higher. Forex gain for the quarter was ₹122 crore (₹1,220 million).
Reported net profit after tax for Q1 FY27 was ₹2,894.8 crore (₹28,948 million), while the adjusted net profit was ₹3,089.4 crore (₹30,894 million). Earnings Per Share (EPS) for the quarter was ₹12.10. The company incurred acquisition-related costs of ₹161.7 crore (₹1,617 million) for the Organon transaction, with further charges expected in subsequent quarters. The effective tax rate for the quarter was 27.8%. The company maintains a strong balance sheet with net cash of $3.4 billion at the consolidated level.
The Global Innovative Medicines business saw sales increase by 12.8% to $351 million, contributing 21.9% of total sales, driven by growth in US and ex-US markets and key products like ILUMYA, ODOMZO, and CEQUA. The India business demonstrated robust performance with formulation sales of ₹5,474.9 crore, a growth of 16%, accounting for 36.1% of consolidated sales. Sun Pharma became the number 2 generic semaglutide injectable player in India and holds the number 1 rank in the Indian pharmaceutical market with an 8.5% share. The US business reported sales of $427 million, a decline of 9.7%, primarily due to generic business erosion, particularly Lenalidomide, although the Innovative Medicines portfolio continued to grow. Emerging markets' formulation revenues were $311 million, up 4.2%, while Rest of the World formulations were $218 million, marginally lower than the previous year.
Consolidated R&D investments for Q1 FY27 were ₹826.4 crore (₹8,264 million), representing 5.4% of sales, with 30% allocated to innovative R&D. The Organon acquisition is on track to close by early 2027, with shareholders having approved the transaction. The company expects the tax rate to remain in a similar range as Q1 going forward.
What to do with a filing like this
Sun Pharmaceutical Industries Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
That call is the part a filing cannot make for you. On RealCase, SEBI-registered research analysts and investment advisers read announcements like this one and turn the ones that matter into actions inside their model portfolios: a change in weight, a hold, or nothing at all. You are not left working out which of the roughly 250 filings published each day needs a response. The portfolio you follow is updated when a filing actually warrants it, with the reason written down.
See the model portfoliosA plain-language summary of a public exchange filing by Sun Pharmaceutical Industries Limited. Read the original for the full detail.