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Sun Pharmaceutical Industries Limited (SUNPHARMA)

Healthcare · Pharmaceuticals & Biotechnology · NSE · Updated 16 June 2026

₹1,806 ↑ 7.16% (1Y)

🎯 Key Takeaways

Sun Pharmaceutical Industries Limited is in a phase of strategic consolidation and capital allocation efficiency, leveraging tax optimization and operational scale to drive profitability while maintaining a disciplined capital structure. The company has transitioned into a mature, cash-generative phase with visible improvements in margins and net profit growth, supported by its recent tax regime adoption and robust cash flows.
Revenue grew 7.2% QoQ to ₹15,521 in Q3FY26.
⚠️ The company faces ongoing litigation-related liabilities, as evidenced by ₹17,112 million in exceptional charges, which could impact future profitabil

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 phase of strategic consolidation and capital allocation efficiency, leveraging tax optimization and operational scale to drive profitability while maintaining a disciplined capital structure. The company has transitioned into a mature, cash-generative phase with visible improvements in margins and net profit growth, supported by its recent tax regime adoption and robust cash flows.

📰 What's Happening

In Q4FY26, Sun Pharma reported a 13.6% YoY revenue increase to ₹350,128 million and a 26.2% YoY net profit rise to ₹118,093 million, driven by operational strength and tax benefits from adopting the concessional tax regime under Section 115BAA at 25.168% effective FY2026-27. The company recommended a final dividend of ₹5 per share, building on prior dividends, and disclosed exceptional charges of ₹17,112 million related to litigation settlements. Management highlighted that the new tax regime enhances long-term earnings visibility, and the $11.75bn Organon acquisition is progressing toward closure by Q3 2026. The audio recording of the FY26 Q4 earnings call was made available to investors, providing transparency into financial results and strategic outlook.

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 demonstrated consistent top-line and bottom-line growth over the past eight quarters, with revenue rising from ₹11,983 million in Q4FY24 to ₹15,521 million in Q3FY26, and net profit expanding from ₹2,659 million to ₹3,381 million in the same period. Operating margins have improved from 25.3% in Q4FY24 to 31.9% in Q3FY26, reflecting pricing power and cost discipline. Profit after tax grew from ₹2,154 million in Q4FY25 to ₹6,087 million in FY26, supported by higher EBITDA margins and tax optimization. This upward trajectory aligns with management’s emphasis on tax regime benefits and sustained R&D investment at 6.7% of sales.

🔮 Management Outlook & What's Next

Management has signaled confidence in future earnings through the adoption of the concessional tax regime under Section 115BAA, effective from FY2026-27, which is expected to reduce tax liability and improve net profitability. They also emphasized continued R&D investment at 6.7% of sales and progress toward closing the $11.75bn Organon acquisition by Q3 2026, which is viewed as a strategic catalyst for portfolio diversification. The board’s recommendation of a ₹5 per share final dividend reflects a commitment to shareholder returns, and management expects this trend to persist amid strong cash generation and disciplined capital allocation.

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 equity base of ₹240 million with reserves growing from ₹71,978 million to ₹77,580 million, indicating retained earnings accumulation. Borrowings have increased modestly from ₹1,870 million to ₹4,686 million, suggesting controlled leverage to support growth initiatives like the Organon acquisition without compromising financial flexibility. Total assets have expanded from ₹92,101 million to ₹1.04 L Cr, reflecting strategic investments in capacity and scale. The strong cash and cash equivalents position of ₹65,032 million underscores liquidity resilience and supports both dividend sustainability and M&A activities.

💰 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 shown a slight upward trend, with FII holdings rising from 16.12% in Q3FY26 to 17.26% in Q1FY26 before stabilizing, while DII holdings have fluctuated between 18.7% and 20.82%. Promoter holding remains steady at 54.48% across periods, indicating confidence in long-term fundamentals. The growing number of shareholders (over 700,000) and consistent institutional accumulation suggest broadening market confidence. No significant pledging or exit signals have emerged, reinforcing stability in the shareholder base.

⚖️ 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 faces ongoing litigation-related liabilities, as evidenced by ₹17,112 million in exceptional charges, which could impact future profitability if unresolved. 2. Integration risks associated with the $11.75bn Organon acquisition may affect financial performance if synergies are not realized on schedule. 3. Margin pressure could emerge if pricing power weakens in a competitive generic drug market, despite current OPM expansion. 4. Regulatory and pricing pressures in key markets like the U.S. and Europe remain structural headwinds for the generic pharmaceutical sector.

📋 Recent Filings

🧠 Analyst's Read

Sun Pharma is executing a clear strategy of tax optimization, operational efficiency, and strategic M&A to drive sustainable profitability and shareholder returns. Investors should monitor the progress of the Organon integration and the realization of tax benefits from the new regime, as these will be pivotal in determining future earnings growth and margin trajectory.

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 2026-06-16.