Sun Pharma Expects Slower FY27 Growth Amid Regulatory, Macroeconomic Challenges

Sun Pharmaceutical Industries Posts Double-Digit Revenue Growth in FY26

Sun Pharmaceutical Industries, India's biggest pharmaceutical company by revenue and market capitalization, has reported double-digit revenue growth in FY26. The company's consolidated revenue grew 11.9% to ₹58,220 crore, while consolidated net profit rose 5% year-over-year (y-o-y) to ₹11,479.4 crore in FY26.

The growth was driven by gains in India, the company's largest market, where sales rose 14% to ₹19,290.4 crore. The company's innovative portfolio in the US and non-US markets also contributed to the growth. Dilip Shanghvi, executive chairman of Sun Pharma, cited regulatory and macroeconomic challenges as the reason for the company's guidance of high single-digit growth for the current fiscal year (FY27).

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Sun Pharma's revenue from operations in the March quarter grew 13.6% y-o-y to ₹14,559.8 crore, while net profit shot up sharply by 26.2% to ₹2,714 crore. The company's Ebitda (earnings before interest, tax, depreciation, and amortization) for the quarter stood at ₹3,954.2 crore, up 6.4% over the year-ago period. The Ebitda margin contracted 160 basis points to 27.1%.

The company's India business grew 14.8% in Q4FY26 to ₹4,835.9 crore, accounting for 33.2% of its overall business, led by CNS (central nervous system), cardiovascular, gastro, and ortho segments. Innovative medicines sales globally stood at $354 million, up 20.1% y-o-y, while US formulations declined marginally to $459 million in the quarter.

Sun Pharma's board has proposed a final dividend of ₹5 per share for FY26, in addition to the interim dividend of ₹11 per share paid in FY26, taking the total dividend for FY26 to ₹16 per share, the same as FY25.

Despite the strong FY26 performance, analysts said the company's guidance points to a moderation in growth momentum this year, attributing it largely to fewer planned launches in FY27. Vishal Manchanda, pharma analyst at Systematix Group, said that Sun Pharma's guidance suggests a slower pace of growth this year, which is expected to be driven by the ramp-up of launches done in FY26.

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Sun Pharma is also betting on acquisitions to strengthen its specialty portfolio. The company announced an $11.75-billion acquisition of US-based women's healthcare and biosimilars company Organon & Co, which is expected to be completed by the fourth quarter of the current fiscal. The acquisition is expected to complement Sun's branded generics business in several markets, as well as cement its entry into women's innovative medicines and biosimilars.

The company is also looking to launch its oral weight loss pill soon, which is expected to contribute to future growth. Sun Pharma has completed clinical studies for the oral pill and will launch once it gets regulatory approval.