Sun Pharmaceutical Industries (SUNPHARMA) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue was INR 161.0bn, up 11.8% YoY; H1 revenue rose 11.0% to INR 312.836bn.

• India and innovative medicines supported growth, while U.S. sales were pressured by lenalidomide erosion.

Financial highlights

• Q2 EBITDA was INR 47.439bn, up 4.8% YoY, with a 29.3% margin; gross margin was 80.8%.

• Q2 reported net profit was INR 19.885bn; adjusted net profit was INR 31.620bn, up 1.4% YoY. H1 adjusted net profit was INR 62.515bn, up 2.2%.

• H1 EBITDA was INR 91.616bn, up 3.8%, with a 29.1% margin; H1 revenue was INR 312.836bn, up 11.0%.

• Q2 R&D investment was INR 7.784bn, or 4.8% of sales; H1 investment was INR 16.048bn, or 5.1% of sales.

Outlook and guidance

• FY27 revenue guidance remains unchanged from the start of the year, described as high-single-digit growth.

• R&D investment is expected to ramp in H2 to meet the previously shared 6%-7% full-year guidance.

• ILUMYA interventions and the psoriatic arthritis indication are expected to support more typical growth over the next few quarters; launch expenses are within budget.

• Organon integration planning is progressing; the acquisition is targeted to close in Q4 FY27, subject to remaining approvals and closing conditions.

• GL0034 topline data are expected in 2H CY27; Fibromun completed Phase 2 for soft-tissue sarcoma and is expected to start Phase 3.