Sun Pharma posts Q2 FY26 net profit ₹3,118 crore (↑2.6%) on ₹14,478 crore revenue; EBITDA margin slips as US sales fall 4.1% to ₹4,400 crore.
Sun Pharma Q2 Results
Sun Pharmaceutical Industries reported a modest rise in consolidated net profit for Q2 FY26, with profit up 2.6% year-on-year to ₹3,118 crore on revenue of ₹14,478 crore — an 8.9% increase driven largely by stronger India sales even as operational margins narrowed.
The company’s EBITDA for the quarter stood at ₹4,067 crore, while the EBITDA margin eased by about 40 basis points to 28.3%, signalling pressure on profitability despite healthy top-line growth. Management pointed to a mixed regional performance: an 11% jump in domestic sales contrasted with a decline in US revenues, which fell 4.1% to about ₹4,400 crore in July–September.
A notable structural shift this quarter was the continued traction for Sun Pharma’s innovative medicines portfolio. Sales of high-margin innovative drugs — spanning dermatology, oncology and obesity therapy — rose roughly 16.4%, reaching about $333 million (nearly ₹2,950 crore), and for the first time in the quarter, innovative medicines outpaced generics in the US business mix. This product mix change supports the company’s stated strategy to move toward higher-value therapies and mid-to-high single-digit revenue growth in FY26.
However, generic competition and pricing pressure in the US market weighed on margins and overall US sales. Analysts tracking Indian pharma note that while specialty and innovative portfolios can lift margins over time, near-term results remain sensitive to US pricing dynamics, inventory cycles and regulatory timelines. Sun Pharma’s commentary and the exchange filing indicate management is prioritising portfolio upgrade and margin recovery even as it navigates the competitive US landscape.
