Sun Pharma Q1 net profit drops 20% to Rs 2,279 crore due to exceptional charge; revenue up 9.5%

Sun Pharma Q1 FY26 Results

Sun Pharmaceutical Industries Ltd on Thursday reported a 20 percent year-on-year decline in consolidated net profit for the fiscal first quarter to Rs 2,278.6 crore, dented by a one-time exceptional charge. However, revenue from operations rose 9.5 percent year-on-year to Rs 1,38,514 crore in Q1FY26, driven by strong growth across key markets, including India, the US, and the Rest of World regions.

The company’s stock was trading marginally lower post the results, at Rs 1,730.8, down 0.17 percent on NSE.

Excluding exceptional items, Sun Pharma’s adjusted net profit rose 5.7 percent year-on-year to Rs 2,996.1 crore. The exceptional charge of Rs 818 crore during the quarter included a Rs 288 crore write-off related to the discontinuation of the development of SCD-044, and Rs 530 crore provision linked to a legal settlement in the US.

Key financial highlights:

• Gross sales stood at Rs 13,786.1 crore, up 10.1 percent year-on-year.
• EBITDA rose 19.2 percent to Rs 4,301.7 crore, with an EBITDA margin of 31.1 percent.
• Profit before exceptional items and tax stood at Rs 3,990.8 crore, up 16.6 percent YoY.
• R&D expenditure for the quarter was Rs 902.9 crore, accounting for 6.5 percent of sales.

• India formulations: Revenue rose 13.9 percent YoY to Rs 4,721 crore, contributing 34.2 percent of total sales. Sun Pharma maintained its No.1 rank in the Indian pharma market and launched five new products during the quarter.
• US formulations: Sales grew 1.4 percent to $473 million (Rs 4,045 crore), accounting for 29.3 percent of overall sales.
• Global Innovative Medicines: Renamed from "Specialty", this segment posted sales of $311 million, up 16.9 percent, contributing 19.3 percent of overall sales.
• Emerging Markets: Sales rose 5.1 percent YoY to $298 million.
• Rest of World (RoW): Revenue surged 15.5 percent YoY to $219 million.
• API business: External sales stood at Rs 540 crore, up 9.3 percent YoY.

• The quarter included a $62 million charge (Rs 530 crore) as part of a proposed settlement with US end-payer plaintiffs.
• A licensing deal was concluded with Incyte Corporation for the LEQSELVI™ product in the US.
• Recent acquisitions, including Taro and Checkpoint Therapeutics, impacted the comparability of Q1 results with the year-ago period.

Chairman and MD Dilip Shanghvi said, “Sun had a strong performance during the quarter, where the overall growth reflects steady progress across all our markets… The U.S. launch of LEQSELVI represents an important step forward, offering a new treatment option for patients with severe alopecia areata.”