Sun Pharmaceutical Industries (SUNPHARMA) Q1 25/26 earnings summary

Executive summary

• Q1 FY 2026 consolidated sales reached INR 138,514 million, up 10.1% year-over-year, with strong growth in India and emerging markets, and continued momentum in innovative medicines.

• EBITDA grew 19.2% year-over-year to INR 43,017 million, with a margin of 31.1%, driven by favorable product mix and higher specialty sales.

• Adjusted net profit rose 5.7% to INR 29,961 million, while reported net profit was INR 22,786.3 million after exceptional items.

• India business led growth with 13.9% sales increase, and the U.S. business grew 1.4% to $473 million, offset by generic pricing pressure.

• Key launches included LEQSELVI in the U.S. and five new products in India; acquisition of Checkpoint Therapeutics added UNLOXCYT to the portfolio.

Financial highlights

• Total income for Q1 FY26 was ₹143,158.6 million, up from ₹131,853.0 million in Q1 FY25.

• Gross margin improved due to lower material costs and higher share of innovative medicines.

• Exceptional items of INR 8,180 million included impairment of SCD-044 and GxMDL settlement.

• Forex gain of INR 2,290 million versus a loss last year; other income was lower due to prior year tax refund interest.

• Research and development expenses for Q1 FY26 were ₹8,841.0 million, up from ₹7,761.9 million in Q1 FY25.

Outlook and guidance

• Expectation of $100 million in direct launch costs for LEQSELVI and UNLOXCYT in FY 2026, with amortization charges to follow product launches.

• Tax rate for the full year anticipated around 25%.

• R&D spend guidance maintained; clinical trial costs expected to rise in coming quarters.

• Results for Q1 FY26 are not directly comparable to previous periods due to recent acquisitions, including Checkpoint Therapeutics Inc.