Sun Pharmaceutical Industries (SUNPHARMA) Q2 25/26 earnings summary

Executive summary

• Q2 FY 2026 sales reached INR 144,052 million, up 8.6% year-over-year, with gross margin at 79.3%.

• EBITDA grew 14.9% to INR 45,271 million, with margin at 31.3%.

• Net profit after tax was INR 31,180 million, up 2.6% year-over-year; EPS at INR 13.

• Global Innovative Medicines sales rose 16.4% to $333 million, now 20.2% of total sales; US Innovative Medicines sales surpassed Generics for the first time.

• India Formulations sales grew 11% to INR 47,348 million, accounting for 32.9% of consolidated sales.

Financial highlights

• H1 FY 2026 sales were INR 281,913 million, up 9.3% year-over-year; EBITDA margin at 31.2%.

• Adjusted net profit for H1 was INR 61,141 million, up 4.1% year-over-year.

• Q2 FY 2026 profit before exceptional items and tax was INR 41,676 million, up 15.8% year-over-year.

• R&D investment for Q2 FY 2026 was INR 7,827 million (5.4% of sales); for H1 FY 2026, INR 16,855 million (6.0% of sales).

• US Formulations sales were $496 million, down 4.1% year-over-year, with generics declining but offset by Innovative Medicines growth.

Outlook and guidance

• R&D spend expected at the lower end of 6%-8% guidance for the year.

• Incremental specialty spend for launches to increase in Q3 and Q4, with ongoing support costs into FY 2027.

• Cash generation expected to normalize by year-end as working capital and acquisition impacts subside.

• Tax rate expected to hover around 25% as prior benefits phase out.

• Ongoing investment in R&D and pipeline expansion, with six novel entities in clinical stage.