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Sun Pharmaceutical Industries Q2 FY27 results: net profit down 36.2% to ₹1,995 crore, revenue up 11.9%
Sun Pharmaceutical Industries Limited reported Q2 FY27 consolidated revenue of ₹16,199 crore, up 11.9% from Q2 FY26, while EBITDA rose 4.8% to ₹4,744 crore. Net profit fell 36.2% to ₹1,995 crore and basic EPS declined to ₹8.3, with the quarter including an exceptional charge of ₹1,269 crore.
Key points
- Consolidated revenue was ₹16,199 crore, up 11.9% from ₹14,478 crore in Q2 FY26 and 5.9% from ₹15,300 crore in Q1 FY27.
- EBITDA was ₹4,744 crore, up 4.8% year on year, while EBITDA margin fell 2.0 percentage points to 29.3%.
- A net profit of ₹1,995 crore was down 36.2% from ₹3,125 crore in Q2 FY26; basic EPS was ₹8.3 against ₹13.0.
- An exceptional charge of ₹1,269 crore weighed on profit; there was no exceptional item in Q2 FY26.
- Standalone revenue was ₹6,142 crore and profit before tax was ₹564.22 crore.
How did Sun Pharmaceutical Industries perform in Q2 FY27?
Sun Pharmaceutical Industries reported consolidated revenue of ₹16,199 crore for Q2 FY27, up 11.9% from ₹14,478 crore in Q2 FY26 and 5.9% from ₹15,300 crore in Q1 FY27. EBITDA rose 4.8% year on year to ₹4,744 crore, but its margin fell 2.0 percentage points to 29.3% from 31.3% in Q2 FY26.
Profit before tax fell 24.2% year on year to ₹3,159 crore, while net profit fell 36.2% to ₹1,995 crore. Basic EPS declined to ₹8.3 from ₹13.0 in Q2 FY26 and ₹12.1 in Q1 FY27. On the standalone basis, revenue was ₹6,142 crore and profit before tax was ₹564.22 crore.
| ₹ crore | Q2 FY27 | Q1 FY27 | Q2 FY26 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 16,199 | 15,300 | 14,478 | +11.9% | +5.9% |
| Other income | 517.32 | 723.62 | 469.92 | +10.1% | −28.5% |
| Total expenses | 12,288 | 11,721 | 10,781 | +14.0% | +4.8% |
| EBITDA | 4,744 | 4,418 | 4,527 | +4.8% | +7.4% |
| EBITDA margin | 29.3% | 28.9% | 31.3% | −2.0 pp | +0.4 pp |
| Profit before tax | 3,159 | 4,099 | 4,168 | −24.2% | −22.9% |
| Tax | 1,158 | 1,188 | 1,031 | +12.4% | −2.5% |
| Net profit | 1,995 | 2,901 | 3,125 | −36.2% | −31.2% |
| EPS (₹) | 8.30 | 12.10 | 13.00 | −36.2% | −31.4% |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What changed in Sun Pharmaceutical Industries' costs and profit?
Total expenses rose 14.0% year on year to ₹12,288 crore, outpacing the 11.9% increase in revenue. Cost of materials was ₹2,319 crore, up 43.0%, employee cost was ₹3,274 crore, up 18.4%, and other expenses were ₹5,084 crore, up 20.9%. Finance costs fell 25.2% to ₹74.67 crore, while depreciation rose 4.0% to ₹758.34 crore.
Other income rose 10.1% to ₹517.32 crore, but an exceptional charge of ₹1,269 crore weighed on profit; there was no exceptional item in Q2 FY26. Tax expense rose 12.4% to ₹1,158 crore. Management said the exceptional items included a provision for a litigation settlement and Organon-related acquisition costs, while the quarter also recorded a forex gain of INR785 million.
| ₹ crore | Q2 FY27 | Q2 FY26 | Change | Change % |
|---|---|---|---|---|
| Cost of materials | 2,319 | 1,622 | +697.19 | +43.0% |
| Employee cost | 3,274 | 2,765 | +509.37 | +18.4% |
| Finance costs | 74.67 | 99.86 | −25.19 | −25.2% |
| Depreciation | 758.34 | 729.50 | +28.84 | +4.0% |
| Other expenses | 5,084 | 4,204 | +880.19 | +20.9% |
| Total expenses | 12,288 | 10,781 | +1,507 | +14.0% |
| Other income | 517.32 | 469.92 | +47.40 | +10.1% |
| Tax | 1,158 | 1,031 | +127.27 | +12.4% |
| Exceptional items | −1,269 (charge) | none |
Source: Company's results filing (XBRL).
How did the first half of FY27 go?
In the first half of FY27, consolidated revenue was ₹31,499 crore, up 11.2% from ₹28,330 crore in H1 FY26, while total income rose 11.9% to ₹32,740 crore. Profit before tax fell 1.1% to ₹7,258 crore from ₹7,340 crore.
Net profit for H1 FY27 fell 9.6% to ₹4,896 crore from ₹5,418 crore, and EPS declined to ₹20.4 from ₹22.5. Management attributed the higher gross margin for the quarter to a better product mix and favourable currency tailwinds, and said the quarter's effective tax rate was 28.3% against 24.7% in Q2 FY26.
| ₹ crore | H1 FY27 | H1 FY26 | Change |
|---|---|---|---|
| Revenue from operations | 31,499 | 28,330 | +11.2% |
| Profit before tax | 7,258 | 7,340 | −1.1% |
| Net profit | 4,896 | 5,418 | −9.6% |
| EPS (₹) | 20.40 | 22.50 | −9.3% |
Source: Company's results filing (XBRL).
What do the balance sheet and cash flow show?
At 30 September 2026, total assets were ₹114,838 crore and total equity was ₹89,564 crore, compared with ₹108,785 crore and ₹83,880 crore respectively at 31 March 2026. Borrowings fell to ₹2,693 crore from ₹4,082 crore, while cash and cash equivalents rose to ₹18,401 crore from ₹9,771 crore.
Inventories were ₹12,592 crore at the end of September 2026, compared with ₹11,493 crore at 31 March 2026. Trade receivables rose to ₹17,805 crore from ₹15,510 crore, while trade payables rose to ₹7,419 crore from ₹7,334 crore. Management said the consolidated balance sheet had net cash of USD3.3 billion.
| ₹ crore | As of 30 September 2026 | As of 31 March 2026 |
|---|---|---|
| Total assets | 1,14,838 | 1,08,785 |
| Total equity | 89,564 | 83,880 |
| Borrowings | 2,693 | 4,082 |
| Cash and equivalents | 18,401 | 9,771 |
| Inventories | 12,592 | 11,493 |
| Trade receivables | 17,805 | 15,510 |
Source: Company's results filing (XBRL).
| ₹ crore | H1 FY27 | H1 FY26 |
|---|---|---|
| Cash from operations | 3,141 | 4,781 |
| Cash from investing | 8,307 | −6,691 |
| Cash from financing | −2,937 | 1,101 |
| Capital expenditure | 1,785 | 2,388 |
Source: Company's results filing (XBRL).
How has Sun Pharmaceutical Industries done over the last 8 quarters?
Revenue has increased year on year in each of the last eight quarters. It reached a quarterly high of ₹16,199 crore in Q2 FY27, while the lowest revenue in the series was ₹12,959 crore in Q4 FY25. EBITDA margin peaked at 31.9% in Q3 FY26 and fell to 27.1% in Q4 FY26 before recovering to 29.3% in Q2 FY27.
Net profit in the quarterly series was highest at ₹3,381 crore in Q3 FY26 and lowest at ₹1,995 crore in Q2 FY27. The latest quarter therefore extended the revenue trend, while profit moved lower and EBITDA margin recovered from the preceding quarter.
What else did the company announce?
The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, together with the statutory auditors’ limited review reports. It also approved the appointment of Deloitte Haskins & Sells Chartered Accountants LLP as statutory auditors for five consecutive years, subject to shareholder approval.
The auditor appointment will begin after the conclusion of the annual general meeting for FY27 and continue until the conclusion of the annual general meeting for 2031-32. It follows the completion of S R B C & CO LLP’s second consecutive term of five years under mandatory auditor rotation requirements.
What did Sun Pharmaceutical Industries' management say?
Management maintained high single-digit consolidated revenue growth guidance for FY27 and said R&D spending was expected to reach 6%-7% of sales for FY27, with a significant ramp in the subsequent quarter. It also maintained the Q4 FY27 timeline for the Organon acquisition, broadly early 2027, and said acquisition-related costs would continue until day 1 and could be back-ended.
Management said India sales grew 17.3%, with 6.7% volume growth, while market share rose to 8.6% from 8.3%. It said US sales fell 8.2% because of lenalidomide erosion and that Ilumya slowed, with corrective interventions and the psoriatic-arthritis launch expected to restore more typical growth over the next few quarters.
Management confirmed a voluntary recall covering 11 ophthalmology products and a temporary cessation of manufacturing in Assam. It also identified continued US lenalidomide erosion, lower first-half R&D spending, Organon closing and integration costs, and continued acquisition-related expenses as risks.
How did Sun Pharmaceutical Industries shares react?
After the filing appeared, the stock was down 0.1% after five minutes, up 1.3% after 15 minutes and up 2.2% after 30 minutes. It closed the reaction day up 1.1% from the previous close, and by the next day’s close it was up 0.3% from that pre-results close.
On the reaction day, the Pharmaceuticals sector median fell 0.8% and the Nifty 100 rose 0.3%, leaving Sun Pharmaceutical Industries ahead of the sector by 1.9 percentage points. By the next day’s close, the sector median was down 0.8% and the Nifty 100 was up 2.0%, with the stock ahead of the sector by 1.1 percentage points.
| After the filing | Stock | Pharmaceuticals median |
|---|---|---|
| 5 minutes | −0.1% | |
| 15 minutes | +1.3% | |
| 30 minutes | +2.2% | |
| Reaction day | +1.1% | −0.8% |
| Next day | +0.3% | −0.8% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
| Results filed on | Stock on the reaction day |
|---|---|
| 31 July 2026 | −1.0% |
| 22 May 2026 | −2.5% |
| 31 January 2026 | +2.1% |
| 5 November 2025 | −1.0% |
| 31 July 2025 | −2.1% |
| 22 May 2025 | −2.1% |
| 31 January 2025 | +0.9% |
| 28 October 2024 | +2.4% |
Source: MarketPing price-reaction measurement.
How did other Pharmaceuticals companies do?
Sixty Pharmaceuticals companies were compared for the quarter, with a median revenue growth of 19.8%. Nineteen peers grew more slowly than Sun Pharmaceutical Industries and 41 grew faster than the company.
Among the 54 peers for which profit was compared, 39 reported higher profit. These comparisons were available as of 4 November 2026.
| Sun Pharmaceutical Industries revenue growth (YoY) | +11.9% |
|---|---|
| Median of 60 other Pharmaceuticals companies | +19.8% |
| Companies with slower revenue growth than Sun Pharmaceutical Industries | 19 of 60 |
| Companies with faster revenue growth than Sun Pharmaceutical Industries | 41 of 60 |
| Companies whose net profit rose | 39 of 54 |
Source: Filed results (XBRL) of the industry's companies.
Quick answers
What was Sun Pharmaceutical Industries' revenue in Q2 FY27?
Revenue from operations was ₹16,199 crore, up 11.9% from ₹14,478 crore in Q2 FY26 (consolidated).
Did Sun Pharmaceutical Industries make a profit in Q2 FY27?
Yes. Net profit was ₹1,995 crore, against a net profit of ₹3,125 crore in Q2 FY26.
What was Sun Pharmaceutical Industries' EPS in Q2 FY27?
Basic earnings per share were ₹8.30, against ₹13.00 in Q2 FY26.
How did Sun Pharmaceutical Industries shares react to the Q2 FY27 results?
On the reaction day the stock moved +1.1% from the previous close; the median Pharmaceuticals stock moved −0.8%.
When did Sun Pharmaceutical Industries announce its Q2 FY27 results?
On 30 October 2026, in a filing to the BSE.
Sources
- Board Meeting Intimation for Consideration And Approval The Unaudited Financial Results For The Quarter And Half Year Ended 30 September 2026 (BSE, 14 October 2026) · PDF
- Unaudited Financial Results For The Quarter And Half Year Ended 30 September 2026 (BSE, 30 October 2026) · PDF
- The earnings call (4 November 2026)
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
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