Sun Pharmaceutical Industries (SUNPHARMA) Q4 24/25 earnings summary

Executive summary

• FY25 consolidated sales grew 9% year-over-year to INR 520,412 million, with EBITDA up 17.3% and adjusted net profit up 19%.

• Q4 FY25 sales rose 8.5% year-over-year to INR 128,156 million, with EBITDA margin improving to 28.7%.

• India business led growth with a 13.7% annual increase, while US business grew 3.6% for the year but declined 2.5% in Q4 due to generic competition.

• Global Specialty sales up 17.1% for the year, now nearly 20% of consolidated sales.

• Robust performance driven by market share gains in India and strong growth in Global Specialty segment.

Financial highlights

• FY25 EBITDA reached INR 152,717 million (29% margin), adjusted net profit INR 119,844 million, and reported net profit INR 109,290 million.

• Q4 adjusted net profit was INR 28,891 million, up 4.8% year-over-year; reported net profit INR 21,499 million.

• Exceptional items in Q4 totaled INR 3,617 million, mainly due to Linara/Lyndra Therapeutics impairment and opioid litigation charges.

• Total FY25 dividend proposed at INR 16 per share, up from INR 13.5 last year.

• Net cash position at $3.1 billion (Rs. 102,688 million) as of March 31, 2025.

Outlook and guidance

• FY26 guidance: mid to high single-digit consolidated top-line growth.

• Additional $100 million investment planned for new specialty product launches in FY26.

• R&D spend expected at 6%-8% of sales for FY26; FY25 R&D investments were Rs. 32,484 million (6.2% of sales).

• Tax rate expected to continue rising as past tax losses are exhausted.

• Management highlighted a promising near-term pipeline in Global Specialty, with launches of Leqselvi and Unloxcyt expected to drive future growth.