Healthcare · NSE: SUNPHARMA
Sun Pharmaceutical Industries
Q2 FY27 earnings call · Guided by management
Call held 30 Oct 2026 · Read the filing on NSEFiling
- M.Cap
- ₹4,52,275Cr₹4.52L Cr
- P/E
- 41.2×
- 1Y return
- +8.83%
- From 52W high
- −7.9%
Highlights are read by AI from the company's filing and can contain mistakes. Check the source page linked to each line.
Share price
Results Q2 FY27, as filed · consolidated · ₹ Cr
| Q2 FY27 | Q2 FY26 | YoY | Q1 FY27 | QoQ | |
|---|---|---|---|---|---|
| Revenue | 16,199 | 14,478 | +11.9% | 15,300 | +5.9% |
| EBITDA | 4,744 | 4,527 | +4.8% | 4,418 | +7.4% |
| EBITDA margin | 29.3% | 31.3% | -198 bps | 28.9% | +42 bps |
| One-off items | -1,269 | — | — | -204 | — |
| PBTProfit before tax | 3,159 | 4,168 | -24.2% | 4,099 | -22.9% |
| Net profit | 1,989 | 3,118 | -36.2% | 2,895 | -31.3% |
| EPS (₹) | 8.30 | 13.00 | -36.2% | 12.10 | -31.4% |
From the company's own results filing on NSE. Net profit is the owners' share. Growth and the dotted lines are worked out from the filed figures.
Guidance
Management expects to meet overall R&D spend guidance as spend ramps up
Dilip Shanghvi · Chairman · Q&A · p. 9
Management expects to meet overall R&D spend guidance as spend ramps up
“quarter. And our expectation is that as that ramps up, we should be able to meet the overall guidance that we've”
Revenue guidance given at start of year kept unchanged
Kirti Ganorkar · Managing Director · Q&A · p. 8
Revenue guidance given at start of year kept unchanged
“Yes. Regarding the guidance, I think we'll stick to what guidance we have given at the beginning”
In short
- 01Q2 FY27 sales grew 11.8% year on year; EBITDA rose 4.8% with a 29.3% margin.
- 02Management said it will stick to the revenue guidance given at the start of the year.
- 03R&D spend was 4.8% of sales, below plan; management expects to meet full-year R&D guidance as spend ramps up.
- 04US sales fell 8.2% to USD 455 million, largely due to lenalidomide erosion.
- 05Ilumya slowed in the US; management expects a return to typical growth over the next few quarters, helped by the new psoriatic arthritis approval.
- 06India formulation sales grew 17.3%; market share rose to 8.6%.
- 07Organon deal is on track to close in Q4 FY27; acquisition costs will continue as exceptional items until then.
- 0811 ophthalmology products were voluntarily recalled and manufacturing temporarily stopped at the plant concerned.
Segments
India: India formulation sales grew 17.3%, 34.5% of consolidated sales
Kirti Ganorkar · Managing Director · p. 5
India: India formulation sales grew 17.3%, 34.5% of consolidated sales
“a growth of 17.3%. India sales accounted for 34.5% of total consolidated sales for the quarter.”
US: US sales USD 455 million, down 8.2%, largely due to lenalidomide erosion
Richard Ascroft · CEO (North America) · p. 5
US: US sales USD 455 million, down 8.2%, largely due to lenalidomide erosion
“business reported sales of USD455 million for the quarter, declining by 8.2%. This decline is largely due to”
US: US business grew 6.5% quarter on quarter
Richard Ascroft · CEO (North America) · p. 5
US: US business grew 6.5% quarter on quarter
“lenalidomide erosion. On a quarter-over-quarter basis, the US business has grown by 6.5%. The US accounted”
US Innovative Medicines: Actions and psoriatic arthritis launch expected to return Ilumya to typical growth
Richard Ascroft · CEO (North America) · Q&A · p. 7
US Innovative Medicines: Actions and psoriatic arthritis launch expected to return Ilumya to typical growth
“coupled with the launch in psoriatic arthritis, we believe will return Ilumya to more typical growth patterns.”
US Innovative Medicines: Ilumya growth recovery expected over the next few quarters
Richard Ascroft · CEO (North America) · Q&A · p. 7
US Innovative Medicines: Ilumya growth recovery expected over the next few quarters
“Over the next few quarters.”
Demand
India: Sun ranked number 1 in India with 8.6% market share
Kirti Ganorkar · Managing Director · p. 5
India: Sun ranked number 1 in India with 8.6% market share
“ranked number 1 and holds 8.6% market share in over INR2,618 billion Indian pharmaceutical market as per”
India: India volume growth 6.7% versus market volume growth of 1.8%
Kirti Ganorkar · Managing Director · p. 5
India: India volume growth 6.7% versus market volume growth of 1.8%
“expansions. Sun volume growth was 6.7% for the quarter compares favorably to IPM growth of 1.8%.”
India: New products in India usually take 3 to 4 years to build, GLP-1 included
Kirti Ganorkar · Managing Director · Q&A · p. 17
India: New products in India usually take 3 to 4 years to build, GLP-1 included
“product over a period of time. And usually, our experience is it takes 3, 4 years for you to build any new product.”
US Innovative Medicines: About one-third of plaque psoriasis patients also have psoriatic arthritis
Richard Ascroft · CEO (North America) · Q&A · p. 10
US Innovative Medicines: About one-third of plaque psoriasis patients also have psoriatic arthritis
“Yes. We don't provide product-specific guidance. What I can share is about one-third of patients”
US Innovative Medicines: IL-23 class remains the dominant and preferred psoriasis class
Richard Ascroft · CEO (North America) · Q&A · p. 11
US Innovative Medicines: IL-23 class remains the dominant and preferred psoriasis class
“you mentioned the most important 2 points, though. The IL-23 class remains the dominant class and the preferred”
Margins and costs
Higher gross margin attributed to better product mix and currency tailwinds
Jayashree Satagopan · Chief Financial Officer · p. 3
Higher gross margin attributed to better product mix and currency tailwinds
“last year, largely on account of a better product mix and favorable currency tailwinds.”
EBITDA margin 29.3%, lower year on year
Jayashree Satagopan · Chief Financial Officer · p. 4
EBITDA margin 29.3%, lower year on year
“in at 29.3%. EBITDA margins are lower year-on-year. Please note that Q2 FY26 had some benefit from”
US Innovative Medicines: Psoriatic arthritis launch expenses are within the overall budget
Richard Ascroft · CEO (North America) · Q&A · p. 7
US Innovative Medicines: Psoriatic arthritis launch expenses are within the overall budget
“We have expenses, but they've been built into our overall budget. They're not extra.”
R&D spend expected to partly catch up in the second half
Dilip Shanghvi · Chairman · p. 6
R&D spend expected to partly catch up in the second half
“but we expect the second half of the year to catch up some of this R&D spend.”
R&D spend expected to pick up as clinical trial infrastructure is put in place
Dilip Shanghvi · Chairman · Q&A · p. 8
R&D spend expected to pick up as clinical trial infrastructure is put in place
“is a function of the start and our ability to recruit subjects in the clinical trial. So we expect that to pick up because”
Debt and working capital
Net cash of USD 3.3 billion at consolidated level
Jayashree Satagopan · Chief Financial Officer · p. 4
Net cash of USD 3.3 billion at consolidated level
“24.7% in Q2 FY26. Balance sheet continues to be strong with a net cash of USD3.3 billion at the consolidated”
Organon deal borrowing rate expected in line with Organon's current borrowing cost
Jayashree Satagopan · Chief Financial Officer · Q&A · p. 13
Organon deal borrowing rate expected in line with Organon's current borrowing cost
“I think the rate of borrowing should be more or less in line with the current borrowing cost of Organon.”
Use Organon's weighted average cost of debt as the borrowing cost reference
Jayashree Satagopan · Chief Financial Officer · Q&A · p. 18
Use Organon's weighted average cost of debt as the borrowing cost reference
“Yes, you should take the average cost of debt, weighted average cost of debt.”
Fund raising
Debut NCD issue is normal financing to repay borrowings, not for Organon
Jayashree Satagopan · Chief Financial Officer · Q&A · p. 18
Debut NCD issue is normal financing to repay borrowings, not for Organon
“Secondly, the NCDs that we issued now is not part of transaction financing. This is part of our normal financing”
Debut NCD issue was successfully subscribed
Jayashree Satagopan · Chief Financial Officer · p. 4
Debut NCD issue was successfully subscribed
“The successful subscription of Sun Pharma's debut NCD issue”
Acquisitions and new business
Innovative Medicines: Ilumya approved in the US for adults with active psoriatic arthritis
Kirti Ganorkar · Managing Director · p. 4
Innovative Medicines: Ilumya approved in the US for adults with active psoriatic arthritis
“We are pleased to note that Ilumya is now approved in the US for the treatment of adults with active psoriatic”
Innovative Medicines: Ilumya psoriatic arthritis soft launch planned in November, full launch later
Kirti Ganorkar · Managing Director · p. 4
Innovative Medicines: Ilumya psoriatic arthritis soft launch planned in November, full launch later
“soft launch in November with a full launch in the following months.”
US: 5 generic products launched in the US in the quarter; US 27% of sales
Richard Ascroft · CEO (North America) · p. 5
US: 5 generic products launched in the US in the quarter; US 27% of sales
“for 27% of consolidated sales for the quarter, and we launched 5 generic products, in the US during this quarter.”
Organon deal to close in Q4 FY27; full acquisition cost estimate then
Jayashree Satagopan · Chief Financial Officer · Q&A · p. 15
Organon deal to close in Q4 FY27; full acquisition cost estimate then
“So as we close the transaction in Q4 of FY27, we will have a full estimate in terms of the acquisition-”
Organon regulatory approvals secured in most regions
Kirti Ganorkar · Managing Director · p. 5
Organon regulatory approvals secured in most regions
“work streams in line with plan. Regulatory approvals have now been secured in majority of the regions with the”
One-offs
Excluding lenalidomide, EBITDA growth was faster than revenue growth
Jayashree Satagopan · Chief Financial Officer · p. 4
Excluding lenalidomide, EBITDA growth was faster than revenue growth
“lenalidomide sales. Adjusted for lenalidomide, EBITDA growth has outpaced revenue growth.”
Q2 exceptional items include a provision for a litigation settlement
Jayashree Satagopan · Chief Financial Officer · p. 4
Q2 exceptional items include a provision for a litigation settlement
“Exceptional items for the second quarter includes provision towards a litigation”
Organon acquisition costs will continue until closing, some back-ended
Jayashree Satagopan · Chief Financial Officer · Q&A · p. 15
Organon acquisition costs will continue until closing, some back-ended
“So the acquisition-relating cost will continue until day 1, and some of these could be back-”
Q2 exceptional items also include Organon-related acquisition costs
Jayashree Satagopan · Chief Financial Officer · p. 4
Q2 exceptional items also include Organon-related acquisition costs
“settlement and on account of Organon-related acquisition costs.”
More Organon-related exceptional expenses expected in the coming quarter
Jayashree Satagopan · Chief Financial Officer · Q&A · p. 15
More Organon-related exceptional expenses expected in the coming quarter
“Yes. And that is normal as we go through the transactions.”
Risks
US Innovative Medicines: Ilumya business slowed in the US due to a mix of factors
Richard Ascroft · CEO (North America) · p. 5
US Innovative Medicines: Ilumya business slowed in the US due to a mix of factors
“This quarter, we saw a slowdown in Ilumya business in the US driven by a mix of factors. This is a key reason”
US Innovative Medicines: Ilumya slowdown partly due to market and partly to execution
Richard Ascroft · CEO (North America) · Q&A · p. 10
US Innovative Medicines: Ilumya slowdown partly due to market and partly to execution
“No, it's really a variety of things. I think there's a bit of market, but frankly, part of it is execution”
US: Sun to extend Most Favored Nation pricing to state Medicaid under US agreement
Richard Ascroft · CEO (North America) · p. 6
US: Sun to extend Most Favored Nation pricing to state Medicaid under US agreement
“signed similar agreements. As part of the agreement, Sun Pharma will extend Most Favored Nation pricing to”
US: US agreement delays Section 232 tariffs on innovative products for over 2 years
Richard Ascroft · CEO (North America) · p. 6
US: US agreement delays Section 232 tariffs on innovative products for over 2 years
“state Medicaid programs. This agreement delays Section 232 tariffs on innovative products for over 2 years and”
US: Sun exempted from GLOBE and GUARD Medicare models
Richard Ascroft · CEO (North America) · p. 6
US: Sun exempted from GLOBE and GUARD Medicare models
“exempts Sun Pharma from the GLOBE and GUARD Medicare models.”
Other
Q2 FY27 sales at INR 1,61,000 million
₹16,100CrJayashree Satagopan · Chief Financial Officer · p. 3
Q2 FY27 sales at INR 1,61,000 million
₹16,100Cr“During the second quarter of FY27, sales were at INR1,61,000 million, registering”
Q2 sales grew 11.8% over Q2 FY26; gross margin at 80.8%
Jayashree Satagopan · Chief Financial Officer · p. 3
Q2 sales grew 11.8% over Q2 FY26; gross margin at 80.8%
“a growth of 11.8% vis-a-vis Q2 FY26. Gross margin was at 80.8% for the quarter, higher than the same period”
Q2 EBITDA INR 47,439 million, up 4.8% year on year
Jayashree Satagopan · Chief Financial Officer · p. 4
Q2 EBITDA INR 47,439 million, up 4.8% year on year
“EBITDA for the quarter was INR47,439 million, an increase of 4.8% over Q2 last year.”
Q2 forex gain INR 785 million, lower than a year ago
₹78.5CrJayashree Satagopan · Chief Financial Officer · p. 4
Q2 forex gain INR 785 million, lower than a year ago
₹78.5Cr“Forex gain for the quarter was INR785 million, which is lower than Q2 of last year.”
Reported Q2 PAT INR 19,885 million; adjusted net profit INR 31,620 million
₹1,988.5CrJayashree Satagopan · Chief Financial Officer · p. 4
Reported Q2 PAT INR 19,885 million; adjusted net profit INR 31,620 million
₹1,988.5Cr“for Q2 FY27 was INR19,885 million, while adjusted net profit for the quarter was INR31,620 million.”
Sources
- Earnings call transcript, Q2 FY27 Filed 4 Nov 2026 · 19 pages
Management's own statements, quoted from its NSE filings. This page was read by AI and can contain mistakes: check the source pages before relying on any figure. No forecast or opinion of ours. Not investment advice.