Sun Pharmaceutical Industries Limited (SUNPHARMA)

Healthcare · Pharmaceuticals & Biotechnology · NSE · Updated 2 August 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹1,990.5 ↑ 16.63% (1Y)

🎯 Key Takeaways

Sun Pharmaceutical is in a strategic growth phase, transitioning from a mature domestic player to a global specialty pharma leader through its proposed $11.75 billion acquisition of Organon & Co.
Revenue grew 7.2% QoQ to ₹15,521 in Q3FY26.
⚠️ Integration risk associated with the Organon acquisition — execution delays or cultural misalignment could impact value creation.

Market Cap

₹4.51 L Cr

P/E Ratio

41.3

P/B Ratio

6.24

ROE

15.1%

ROCE

20.3%

Debt/Equity

0.03

Div Yield

0.00%

Promoter

54.5%

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📖 The Story

Sun Pharmaceutical is in a strategic growth phase, transitioning from a mature domestic player to a global specialty pharma leader through its proposed $11.75 billion acquisition of Organon & Co. The company demonstrates strong profitability and cash generation, with improving margins and revenue growth, while maintaining a conservative balance sheet. Management is actively executing a clear expansion strategy focused on innovation and women's health, supported by robust governance and shareholder confidence.

📰 What's Happening

The most significant development is the board's approval of the unaudited Q1 FY27 financial results and the definitive agreement to acquire Organon & Co. for $11.75 billion, with closing expected by Q4 FY27. Management highlighted that the acquisition will expand Sun Pharma's presence in women's health and biosimilars. The Q1 FY27 results showed 10.1% YoY revenue growth to Rs 151,836 million, EBITDA margin of 28.9%, and adjusted net profit of Rs 30,894 million, driven by strong sales performance and operational efficiency. Exceptional items of Rs 5,463.4 million and a deferred tax credit of Rs 1,030 million from remeasurement under New Labour Codes were disclosed. The company also finalized its 34th AGM, where all resolutions — including financial statements, final dividend of Rs 5 per share, and appointments — were passed with overwhelming shareholder support.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY24	Q1FY25	Q2FY25	Q3FY25	Q4FY25	Q1FY26	Q2FY26	Q3FY26
Revenue	11,983	12,653	13,291	13,675	12,959	13,851	14,478	15,521
Operating Profit	3,539	4,140	4,293	4,158	3,967	3,948	4,997	5,038
OPM %	25.3%	28.5%	29.6%	29.3%	28.7%	31.1%	31.3%	31.9%
Net Profit	2,659	2,861	3,037	2,913	2,154	2,293	3,125	3,381
EPS	₹11.10	₹11.80	₹12.70	₹12.10	₹9.00	₹9.50	₹13.00	₹14.00

Sun Pharma has delivered consistent top-line and margin expansion over the past eight quarters, with revenue growing from Rs 11,983 million in Q4FY24 to Rs 15,521 million in Q3FY26, and OPM improving from 25.3% to 31.9%. Net profit and EPS have risen steadily, reflecting operational discipline and scale benefits. The recent Q1 FY27 results show a notable jump in EBITDA margin to 28.9% and adjusted net profit to Rs 30,894 million, up from Rs 2,293 million in Q1FY26, underscoring the positive trajectory ahead of the Organon acquisition. This growth is not driven by one-off factors alone but is underpinned by sustained volume growth and margin discipline across core businesses.

🔮 Management Outlook & What's Next

Management expressed confidence in future growth, citing the Organon acquisition as a transformative step to enter high-potential segments like women's health and biosimilars. They indicated the deal is on track to close by Q4 FY27, subject to regulatory approvals. Management also emphasized continued focus on innovation, operational excellence, and capital allocation discipline, while highlighting the strategic rationale behind the acquisition — particularly synergies in commercial capabilities and product portfolios. The company did not provide detailed forward guidance beyond the acquisition timeline, but reiterated its commitment to sustainable growth and shareholder value creation.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item	2024-2025	2024-2025	2024-2025	2024-2025	2025-2026
Equity Capital	240	240	240	240	240
Reserves	—	68,875	—	71,978	77,580
Borrowings	—	2,081	—	1,870	4,686
Total Liabilities	—	18,736	—	19,615	25,580
Fixed Assets	—	10,098	—	10,036	10,407
Investments	—	17,265	—	17,905	19,543
Total Assets	—	88,116	—	92,101	1.04 L Cr

The balance sheet reflects a strong capital structure with minimal debt (D/E of 0.03) and growing equity and reserves. Total assets have expanded from Rs 92,101 million in FY25 to Rs 1.04 L Cr in FY26, driven by investments in subsidiaries and deferred tax assets. Borrowings remain low at Rs 4,686 million, indicating conservative leverage. The company is likely preserving financial flexibility to fund the Organon acquisition, which may be financed through a mix of cash, debt, and stock, though no specific financing plan was disclosed in the filings.

💰 Cash Flow Statement (₹ Cr)

Item	2020-2021	2020-2021
Operating	+1,946	+6,170
Investing	-73	+536
Financing	-2,393	-5,980
Net Cash Flow	—	—

👥 Shareholding Pattern

Category	Q4FY24	Q1FY25	Q2FY25	Q3FY25	Q4FY25	Q1FY26	Q2FY26	Q3FY26
Promoters	54.5%	54.5%	54.5%	54.5%	54.5%	54.5%	54.5%	54.5%
FII	17.7%	17.2%	18.0%	18.1%	18.0%	17.3%	16.6%	16.1%
DII	18.8%	19.3%	18.6%	18.6%	18.7%	19.5%	20.2%	20.8%
Public	9.0%	9.0%	8.9%	8.9%	8.9%	8.8%	8.7%	8.6%
# Shareholders	6,31,392	6,73,217	6,57,317	6,89,623	7,04,983	7,23,770	7,43,877	7,10,900

Institutional investor interest has slightly declined in the most recent quarters, with FII holding decreasing from 17.96% in Q4FY25 to 16.12% in Q3FY26, while DII holdings have stabilized around 20%. Promoter holding remains steady at 54.48%. The slight reduction in FII exposure may reflect profit booking or portfolio rebalancing, but the stock remains widely held with over 700,000 shareholders, indicating broad retail and institutional participation. No signs of significant promoter pledging or distress selling were evident in the data.

⚖️ Peer Comparison — Pharmaceuticals & Biotechnology

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Sun Pharmaceutical Industries Limited	4.51 L Cr	41.3	20.3%	15.1%	0.03
Divi's Laboratories Limited	1.79 L Cr	72.4	22.1%	16.6%	0.00
Torrent Pharmaceuticals Limited	1.49 L Cr	80.1	—	—	—
Cipla Limited	1.16 L Cr	25.4	19.4%	14.6%	0.00
Dr. Reddy's Laboratories Limited	1.12 L Cr	20.0	19.7%	16.6%	0.12
Lupin Limited	1.04 L Cr	36.2	—	—	—
Mankind Pharma Limited	1.03 L Cr	49.2	—	—	—
Zydus Lifesciences Limited	1.02 L Cr	22.5	—	—	—
Aurobindo Pharma Limited	87,806	25.3	—	—	—
Laurus Labs Limited	71,455	356.8	—	—	—

🔗 Peer Stock Analyses

DIVISLAB TORNTPHARM CIPLA DRREDDY LUPIN

⚠️ Risk Factors

1. Integration risk associated with the Organon acquisition — execution delays or cultural misalignment could impact value creation. 2. Regulatory and geopolitical exposure — the $11.75 billion deal requires multiple jurisdictional approvals and may face scrutiny, especially given the size and cross-border nature. 3. Margin pressure risk — while current margins are strong, integration-related costs or market competition in new segments could compress profitability. 4. Currency volatility — significant international exposure post-acquisition could affect earnings if foreign exchange movements are not hedged effectively.

📋 Recent Filings

🧠 Analyst's Read

Sun Pharma is executing a clear, ambitious growth strategy anchored by the Organon acquisition, supported by strong financial performance and governance stability. Investors should monitor the acquisition timeline, integration progress, and how the deal impacts capital allocation and profitability in the next 12–18 months. The company’s ability to deliver on its expansion narrative will be critical in sustaining investor confidence.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-08-02.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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