Sun Pharma share price falls 3% after US FDA conducts inspection in Baska facility. Should you buy, sell or hold?

Sun Pharma share price fell over 3% to ₹1,738 apiece on NSE in Thursday's trading session after the US Food and Drug Administration designated the company’s Baska manufacturing facility as Official Action Indicated (OAI).

According to an exchange filing, the pharma major said the inspection took place between September 8 and September 19, 2025, following which the US FDA classified the facility under Official Action Indicated (OAI) status.

“This is to inform that the US FDA inspected the Company’s Baska facility from 8 September 2025 to 19 September 2025. The US FDA has subsequently determined that the inspection classification status of this facility is Official Action Indicated (OAI),” the company said in the filing.

Sun Pharma further clarified that the company will continue to manufacture and supply approved products from the facility to the US market and will also work with the regulator to achieve a fully compliant status.

Sun Pharma Q2 results 2025

Sun Pharma reported a 2.5% year-on-year increase in consolidated net profit to ₹3,118 crore for Q2 FY26, compared with ₹3,040 crore in the same quarter last year.

Revenue from operations climbed 9% YoY to ₹14,478 crore during the July–September period, up from ₹13,291 crore in Q2 FY25.

Operating profit (EBITDA) rose sharply by 15% to ₹4,527 crore, versus ₹3,939 crore a year earlier, while the EBITDA margin improved to 31.2% from 29.6% in the corresponding quarter.

Sun Pharma share price: Should you buy, sell or hold?

Brokerage firm InCred Equities has upgraded the Sun Pharma stock to ‘add’, with a target price of ₹2,000. “The US market near-term concerns linger on growth beyond Jan 2026F (post gRevlimid settlement expiry) and the potential risk of margin contraction. However, we see bright spots in Lupin and Sun Pharmaceutical Industries’ India revenue, which grew strongly by 10% YoY, and most companies outperforming the IPM,” the firm said in a note.

Meanwhile, Choice Institutional Equities has maintained an ‘add’ rating on the pharma stock, with a target price of ₹1,825, saying, “We expect the company to maintain this momentum as these brands scale up. The company also remains on track to enter the GLP-1 market in India and Canada. With R&D spends normalizing after specialty expansion, we expect EBITDA margin to stay steady in FY26E, with potential for expansion in FY27E as high-value products gain operating leverage.”

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.