Sun Pharma eyes mid-high single digit revenue growth in FY26, bets on innovation

One of India's largest drugmakers, Sun Pharmaceutical Industries, on Wednesday, December 26, said it is targeting mid- to high-single digit consolidated topline growth in FY26.

The company also said that it continues to invest in strengthening its innovative medicines pipeline.

The guidance was shared as part of the company’s latest investor presentation.

The company said research and development will remain a key focus area. Cumulative R&D spending has reached around ₹320 billion so far, with R&D expenditure

accounting for 6.2% of sales in FY25, the company noted.

US pricing proposals in focus

The guidance comes at a time when the company is also navigating policy developments in the US pharmaceutical market. Earlier this week, the US Centers for Medicare and Medicaid Services (CMS) proposed mandatory pricing models aimed at introducing “most favoured nation” pricing across Medicare Part B and Part D drugs.

Under the proposals, drugmakers would be required to pay rebates if US prices exceed global benchmarks. The Medicare Part D proposal, known as GUARD (Guarding US Medicare Against Rising Drug Costs), seeks to curb prescription drug costs, while a separate pricing framework under Medicare Part B—referred to as the GLOBE model—would apply similar international price comparisons.

Brokerage firm Macquarie said Sun Pharma has the highest exposure to branded pharmaceuticals among its peers. Around 20% of the company’s revenue comes from its innovative medicines portfolio, which could make it more exposed to international price benchmarking than peers.

Sun Pharma Q2 results

Last month, the Mumbai-based company reported consolidated net profit of ₹31.18 billion for the quarter ended September 30, up from ₹30.4 billion a year earlier and ahead of market estimates of ₹29.97 billion.

Revenue for the quarter rose 8.6% year-on-year to ₹144.05 billion, supported by an 11% increase in India sales, Sun Pharma’s largest market, along with steady demand across key therapeutic segments.

Shares of Sun Pharmaceutical Industries ended lower on Friday, by 0.98% at ₹1,720.00 on the NSE.

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