Sun Pharmaceutical Industries Limited (SUNPHARMA)

Healthcare · Pharmaceuticals & Biotechnology · NSE · Updated 14 July 2026

₹1,921.4 ↑ 14.19% (1Y)

🎯 Key Takeaways

Sun Pharmaceutical Industries Limited is in a mature growth phase, characterized by consistent profitability, strong cash generation, and disciplined capital allocation. The company has demonstrated robust financial performance with expanding margins and net profit growth, supported by operational efficiency and tax optimization strategies.
Revenue grew 7.2% QoQ to ₹15,521 in Q3FY26.
⚠️ The company recorded ₹17,112 million in exceptional charges related to litigation settlements, which, while non-recurring, could signal ongoing legal

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 Industries Limited is in a mature growth phase, characterized by consistent profitability, strong cash generation, and disciplined capital allocation. The company has demonstrated robust financial performance with expanding margins and net profit growth, supported by operational efficiency and tax optimization strategies. Management is focused on sustaining profitability while maintaining a conservative capital structure and returning capital to shareholders through dividends.

📰 What's Happening

In the latest filing on 2026-05-22, Sun Pharma reported audited FY26 results with revenue of ₹350,128 million and net profit of ₹118,093 million, reflecting a 13.6% YoY increase in Q4 revenue and 26.2% YoY growth in net profit. The company recorded exceptional charges of ₹17,112 million related to litigation settlements but still achieved strong profitability, aided by tax benefits from adopting the concessional tax regime under Section 115BAA at 25.168% effective FY 2026-27. The board recommended a final dividend of ₹5 per share, with record and payment dates set for 7 July and 7 August 2026 respectively, pending shareholder approval at the 34th AGM on 31 July 2026.

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

Quarterly revenue has grown steadily from ₹11,983 million in Q4FY24 to ₹15,521 million in Q3FY26, with net profit rising from ₹2,659 million to ₹3,381 million over the same period. Operating margins have improved from 25.3% in Q4FY24 to 31.9% in Q3FY26, indicating operational leverage and cost efficiency. The consistent sequential growth in revenue and profit across seven quarters, despite macroeconomic headwinds, reflects resilient demand and effective execution. Management attributes profitability gains to both operational performance and tax regime optimization, suggesting sustainable earnings momentum.

🔮 Management Outlook & What's Next

Management has signaled confidence in future profitability by adopting the concessional tax regime under Section 115BAA at an effective rate of 25.168% for FY 2026-27, which is expected to enhance net margins. There is no explicit forward guidance on revenue growth targets, but the focus remains on operational excellence and margin expansion. The company continues to prioritize dividend sustainability, as evidenced by the consistent ₹5 per share final dividend recommendation and record date announcement ahead of the AGM.

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 shows a stable capital structure with equity capital of ₹240 million and reserves growing from ₹71,978 million to ₹77,580 million over two years, indicating retained earnings are being reinvested or accumulated. Borrowings have increased modestly from ₹1,870 million to ₹4,686 million, but remain low relative to equity and cash flows, reflecting a conservative leverage profile. Total assets have grown from ₹92,101 million to ₹1.04 L Cr, driven by asset accumulation and strong cash reserves of ₹65,032 million, supporting both operational expansion and financial resilience.

💰 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, with FII holding decreasing from 17.96% in Q4FY25 to 16.12% in Q3FY26, while DII holdings have remained relatively stable around 19-20%. Promoter holding remains steady at 54.48% across all quarters, suggesting no dilution or stake reduction. The number of shareholders has increased from 7,04,983 to 7,10,900, indicating broader retail participation. There are no signs of significant exits by promoters or institutions, and the stable shareholding pattern supports continuity in governance and strategy.

⚖️ 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. The company recorded ₹17,112 million in exceptional charges related to litigation settlements, which, while non-recurring, could signal ongoing legal or regulatory exposure. 2. Despite strong profitability, the P/E ratio of 41.3 suggests the market may be pricing in future growth expectations, making the stock potentially sensitive to earnings volatility. 3. Borrowing levels have increased, though still low, warranting monitoring of leverage trends if capital expenditures accelerate. 4. The reliance on tax regime benefits under Section 115BAA may not be sustainable if regulatory changes occur, potentially impacting future tax expenses.

📋 Recent Filings

🧠 Analyst's Read

Sun Pharma is executing with discipline, delivering consistent profit and margin growth while maintaining a strong balance sheet and returning cash via dividends. The key watchpoints are sustaining operational momentum amid pricing pressures and monitoring how the adopted tax regime impacts long-term profitability. Investors should track upcoming AGM outcomes and any commentary on pipeline or international performance at the 34th AGM on 31 July 2026.

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

✨ Deep Dive with AI on SUNPHARMA

Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-14.

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