Sun Pharmaceutical Industries Ltd., India's largest pharmaceutical company, has announced a strong start to FY2026-27, reporting double-digit revenue growth in the first quarter ended June 30, 2026. Robust performance in the domestic formulations business and continued momentum in its innovative medicines portfolio helped the company deliver higher sales and profitability despite softer demand in the U.S. generics market.
The company reported consolidated revenue of ₹151,836 million, representing a 10.1% year-on-year increase. Net profit attributable to shareholders rose to ₹28,948 million, while adjusted net profit increased to ₹30,894 million. EBITDA stood at ₹44,177 million, with an EBITDA margin of 28.9%, reflecting continued operational strength.
India Business Continues to Drive Growth
Sun Pharma's India formulations business remained the largest contributor to revenue during the quarter. Domestic sales reached ₹54,749 million, registering a 16% year-on-year growth and accounting for 36.1% of total consolidated sales. The company retained its position as India's largest pharmaceutical company, increasing its market share to 8.5% while launching five new products during the quarter.
Innovative Medicines Deliver Strong Momentum
Global sales of Sun Pharma's innovative medicines business reached US$351 million, representing 12.8% growth over the corresponding quarter last year. The innovative medicines segment contributed 21.9% of total sales, highlighting the company's continued transition toward specialty and patented therapies.
The company also reported external API sales of ₹5,972 million, up 10.5%, while continuing to invest heavily in research and development with total R&D expenditure of ₹8,264 million, representing 5.4% of sales.
U.S. Market Remains Challenging
Sales from the United States formulations business stood at US$427 million, reflecting a 9.7% decline compared to the previous year. According to the company, growth in innovative medicines partially offset the decline in the U.S. generics business. Emerging Markets formulations grew 4.2% to US$311 million, while Rest of World markets contributed US$218 million during the quarter.
Pipeline Advances and Regulatory Progress
Sun Pharma said its innovative research pipeline now includes five novel molecules in clinical development. The company has 558 approved ANDAs in the U.S., with 119 additional ANDAs awaiting FDA approval, including 28 tentative approvals. During the quarter, it filed three ANDAs and received approvals for six. Its portfolio also includes 57 approved NDAs, with 13 additional applications under FDA review.
The company highlighted progress in its specialty pipeline, including regulatory milestones for Ilumya, Fibromun, GL0034 for type 2 diabetes, and Nidlegy, demonstrating continued investment in innovative therapies.
Organon Acquisition Progressing
Managing Director Kirti Ganorkar said the quarter's performance was supported by strong growth in India and innovative medicines across global markets. He also noted that Organon shareholders have approved Sun Pharma's proposed acquisition, which remains on track for completion in early 2027. The company further emphasized recent approvals for its semaglutide products in India, Brazil, and South Africa, strengthening its position in complex peptide therapies.
Sun Pharma's Q1 FY27 results underline the company's continued focus on specialty medicines, innovation, and global expansion, while maintaining leadership in the Indian pharmaceutical market. With steady investment in research, an advancing development pipeline, and the planned Organon acquisition, the company aims to strengthen its long-term growth strategy.
