Sun Pharma's profit, revenue to rise in Q3; EBITDA margin may remain stable

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26 Aug, 2025 12:21

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Pharmaceutical major Sun Pharma is on January 29 expected to report a healthy year-on-year (YoY) rise in profit and revenue for the December quarter of the financial year 2020-21.

The company's EBITDA margin may remain stable or may even increase YoY but it may show a QoQ decline as partial cost-saving measures implemented during the lockdown unwind, brokerages said.

Along with the numbers, all eyes will be on prescription trends in specialty portfolio and the company's outlook on branded generics in emerging markets.

Brokerage firm Motilal Oswal Financial Services expects a 65.7 percent YoY rise in adjusted net profit and a 7.3 percent YoY rise in revenue for the quarter.

EBITDA may grow 27.5 percent YoY and EBITDA margin may rise to 24.3 percent for Q3FY21 against 20.4 percent YoY.

Brokerage firm Kotak Institutional Equities expects the revenue of the company's US arm Taro to remain flat sequentially but ex-Taro US revenues may increase by $7 million QoQ, led by improvement in specialty sales.

"We expect global specialty business at $115 million for the quarter. We expect domestic business to grow 6 percent YoY, the rest of the world to grow 10 percent YoY, and EMs to grow 10 percent YoY," Kotak said.

The estimates of Kotak shows a 4.9 percent YoY rise in the company's net sales, while adjusted PAT may jump 48.3 percent YoY.

Kotak expects the company's Q3FY21 EBITDA margin at 24.2 percent, led by an increase in promotional spending. The brokerage expects the base Taro EBITDA margin to increase to 34.2 percent.

As per Kotak, Sun Pharma's EPS may grow about 49 percent YoY.

Brokerage firm ICICI Securities expects an 8.7 percent YoY rise in revenue and a 5.9 percent YoY rise in EBITDA.

"India to grow at 10 percent with recovery in the acute segment and continued traction in the chronic portfolio. The US is expected to grow 2 percent QoQ to $342 mn with traction in its specialty segment and stable performance from Taro," ICICI Securities said.

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