Sun Pharmaceutical Industries (SUNPHARMA) Q3 25/26 earnings summary

Executive summary

• Q3 FY2026 sales reached INR 154,691 million, up 15.1% year-over-year, with milestone income of $55 million in Rest of World markets; ex-milestone, sales grew 14.7%.

• Net profit after tax for Q3 was INR 33,688 million, up 16% year-over-year; adjusted net profit was INR 35,367 million, up 9.9%.

• EBITDA for Q3 was INR 49,485 million, up 23.4% year-over-year; EBITDA margin at 31.9%.

• Global Innovative Medicines sales were $423 million, including a $55 million milestone payment, and accounted for 21.2% of sales (ex-milestone).

• Interim dividend of INR 11 per share declared for FY26.

Financial highlights

• Gross margin for Q3 was 81%, higher than last year due to improved product mix.

• For the first nine months, sales were INR 436,604 million, up 11.3%; EBITDA was INR 137,772 million, up 19.2%, with a margin of 31.4%.

• Q3 net profit: INR 33,688 million, up 16% year-over-year.

• R&D investment for Q3FY26: INR 8,928 million (5.8% of sales); 9mFY26: INR 25,783 million (5.9% of sales).

• Q3FY26 profit before exceptional items and tax: INR 47,166 million, up 24.4% year-over-year.

Outlook and guidance

• Management expects continued growth in innovative medicines and recovery in US generics as manufacturing compliance improves.

• No specific margin or revenue guidance provided; focus remains on sustaining current performance and expanding new launches.

• Management highlighted well-rounded growth across all businesses, led by Branded businesses in India, Emerging Markets, and Global Innovative Medicines.

• Continued expansion of innovative product offerings, including new launches in the US and India.