Sun Pharma beats street estimates in Q3 with net profit up 16%

The Mumbai-based drugmaker said its total sales rose 15.1% year-on-year to ₹15,469 crore. Total revenue from operations rose 13.4% YoY to ₹15,520.5 crore, the company said in a regulatory filing.

The company saw steady revenue growth in its branded business in India and emerging markets as well as in global innovative sales, offsetting the decline in sales of Revlimid.

A Bloomberg poll had pegged the drugmaker’s revenue to grow to ₹14,792 crore with profit after tax at ₹3,035 crore for the quarter.

The pharmaceutical company's earnings before interest, taxes, depreciation, and amortization (Ebitda) for the quarter was ₹4,948.5 crore, up 23.4%, while the margin was 31.9%, up from 29.3% a year ago.

“Our results this quarter demonstrate well‑rounded growth across all businesses, prominently led by our Branded businesses in India, Emerging Markets and Global Innovative Medicines. Our innovative product offering has expanded further with the launch of Unloxcyt in the US and the introduction of Ilumya in India," Kirti Ganorkar, managing director, said in a statement.

Region-wise sales

Sun Pharma’s US generic sales were at $477 million, marginally up by 0.6% YoY. Innovative medicines continued to grow, offsetting the decline in generics business, the company said. US sales accounted for approximately 27.5% of total consolidated sales.

Its global innovative medicine sales were at $423 million for Q3FY26, which included a milestone income of $55 million. Ex-milestone, global innovative medicine sales were up 13.2% and accounted for 21.2% of sales.

Sun Pharma's innovative sales outpaced generic sales in the US for the first time in the September quarter, pointing to the company's shift in focus towards novel drugs.

There is uncertainty around the potential effect of the most-favoured nation (MFN) drug pricing norms being enforced in the US. Under the MFN drug pricing norms, drug manufacturers are required to match the lowest price offered for a drug in other developed countries, and is part of the Trump administration’s push to localise and make healthcare cheaper for Americans.

In December, the Centers for Medicare & Medicaid Services (CMS) proposed pricing initiatives to incorporate MFN pricing into Medicare Parts B and D programs. If finalized, manufacturers will have to pay additional mandatory rebates on drugs covered under these programs.

The company’s management told investors in a post-earnings call on Saturday that it would be speculative to comment on the impact of the proposed models, but it is working on all possible alternatives to mitigate any potential impact.

Sun Pharma has not announced any potential impact yet.

Its India sales grew 16.2% to ₹4,999 crore, outpacing the growth of the overall Indian pharmaceutical market. India sales accounted for 32.3% of overall sales.

Sun’s market share in India increased from 8.1% to 8.4% as per Pharmarack's MAT December 2025 report.

Earlier this month, Sun Pharma announced that it had received approval from the central regulator to launch semaglutide for weight management and plans to launch it once its patent expires in March.

Sun Pharma's share price closed at ₹1,595.00 on the NSE on Friday, marginally up at 0.36%.