Sun Pharmaceutical Industries (SUNPHARMA) Q4 25/26 earnings summary

Executive summary

• Q4 FY 2026 sales reached INR 145,598 million, up 13.6% year-over-year, with net profit after tax at INR 27,140 million and EPS at INR 11.31; full year sales were INR 582,201 million, up 11.9%, and net profit increased 5% to INR 114,794 million.

• EBITDA for Q4 was INR 39,542 million (margin 27.1%), and full year EBITDA grew 16.1% to INR 177,314 million with a margin of 30.3%.

• Global Innovative Medicines sales reached $1.42 billion for FY26, up 16.8%, now 20.7% of total sales.

• India Formulations sales grew 14% for the year, with Q4 sales at INR 48,359 million, and market share increased to 8.4%.

• Announced acquisition of Organon & Co., with integration activities underway and expected completion in Q4 FY 2027.

Financial highlights

• Q4 gross margin improved to 80.8% year-over-year; FY26 gross margin at 80.2%.

• Q4 EBITDA was INR 39,542 million (margin 27.1%), FY26 EBITDA was INR 177,314 million (margin 30.3%).

• R&D investment was INR 9,757 million in Q4 (6.7% of sales) and INR 35,540 million for FY26 (6.1% of sales).

• Net cash position at $3.2 billion consolidated.

• Final dividend of INR 5 per share, total FY26 dividend at INR 16 per share, unchanged from prior year.

Outlook and guidance

• High single-digit consolidated top-line growth expected for FY 2027.

• R&D spend for FY 2027 guided at 6%-7% of sales.

• Effective tax rate expected to be around 25% for the next year.

• Organon acquisition expected to close by Q4 FY27, aimed at accelerating global transformation.

• Continued focus on expanding Innovative Medicines and strengthening global presence.