Sun Pharma's Q2 profit drops 36 pc to Rs 1,989 crore on one-time loss
Sun Pharmaceutical Industries Limited on Friday reported a 36.2 per cent year-on-year (YoY) decline in consolidated net profit to Rs 1,988.53 crore for the quarter ended September 2026 (Q2 FY27), impacted by a one-time loss of Rs 1,269 crore.
Despite the hit to profitability, the country's largest drugmaker posted double-digit revenue growth, with sales rising nearly 12 per cent during the quarter, according to its stock exchange filing.
Excluding exceptional items, profit before tax stood at Rs 4,428.2 crore, marking a 6.3 per cent increase from the year-ago period.
Revenue from operations rose 11.9 per cent year-on-year to Rs 16,198.71 crore in the July-September quarter, compared with Rs 14,478.31 crore a year earlier.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) increased 4.8 per cent to Rs 4,744 crore from Rs 4,527 crore in the year-ago quarter.
However, EBITDA margin narrowed to 29.3 per cent from 31.3 per cent, as per its regulatory filing.
The drugmaker continued to invest in innovation, with research and development expenditure standing at Rs 778.4 crore during the quarter, equivalent to 4.8 per cent of sales.
The company's India business remained a key growth driver. Domestic formulation sales rose 17.3 per cent year-on-year to Rs 5,552.3 crore from Rs 4,735 crore, accounting for 34.5 per cent of consolidated sales during the quarter.
Sun Pharma also increased its market share in the Indian pharmaceutical market to 8.6 per cent from 8.3 per cent, according to the Pharmarack MAT September 2026 report.
In contrast, formulation sales in the United States declined 8.2 per cent to $455 million during the quarter. The US business contributed approximately 27 per cent of total consolidated sales.
Sales from emerging markets continued to show steady growth. Revenue from emerging market formulations increased 7.6 per cent year-on-year to $350 million and accounted for 20.7 per cent of consolidated sales during the quarter.
Meanwhile, formulation sales in the rest-of-the-world markets grew 3.1 per cent to $241 million, contributing 14.3 per cent of total consolidated sales.
Investors reacted positively to the revenue performance and underlying operational strength despite the decline in reported profit. Shares of Sun Pharma were trading 3.99 per cent higher at Rs 1,833.30 apiece on the BSE during noon trade.
