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 growth was 14.7%.

• EBITDA for Q3FY26 was INR 49,485 million, up 23.4%, with EBITDA margin at 31.9%.

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

• Interim dividend declared at INR 11 per share for FY2026, up from INR 10.5 per share last year.

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

Financial highlights

• Nine-month FY2026 sales were INR 436,604 million, up 11.3% year-over-year; gross margin at 80%.

• EBITDA for nine months was INR 137,772 million, up 19.2%, with EBITDA margin at 31.4%.

• Net cash position at $3.2 billion at the consolidated level.

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

• Exceptional charge of INR 4,895 million taken for Wage Code gratuity and Gx MDL settlement.

Outlook and guidance

• Focus remains on sustaining margins and growth, with ongoing investments in innovative medicines and new launches.

• No specific forward-looking guidance on margins or product-specific growth; effective tax rate expected to remain around 25%.

• R&D spend expected to increase as new clinical trials commence.

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