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What is the story about?
Shares of India's largest drugmaker, Sun Pharma Ltd., fell up to 3% on Friday, May 22, after the company reported March quarter results that were a miss compared to what the street had anticipated.
For the quarter, Sun Pharma's profitability grew by 26% from last year to ₹2,714 crore, which is in-line with the CNBC-TV18 poll of ₹2,742 crore.
Revenue for the quarter stood at ₹14,612 crore, a growth of 12.8% compared to the previous year's figure of ₹12,959 crore. The figure is also marginally higher than the CNBC-TV18 poll of ₹14,528.1 crore.
Sun Pharma's results missed expectations on the operational front, with Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹3,955 crore, up 6.4% from the previous year's figure of ₹3,716 crore, but lower than the CNBC-TV18 poll of ₹4,043 crore.
EBITDA margin for the period narrowed by 160 basis points from last year to 27.1% from 28.7% last year and the number was also lower than the CNBC-TV18 poll figure of 27.8%.
Sun Pharma's US formulations sales fell 1.1% from last year to $459 million during the March quarter. For the full year, the growth was a negative 0.9%.
Innovative medicines continue to grow for Sun Pharma, offsetting the decline in the generics business. US sales accounted for 28.8% of the overall topline.
Global Innovative Medicines sales increased by 20.1% during the quarter to $354 million.
India formulation sales grew by 14.8% year-on-year to ₹4,835 crore led by CVD, CNS, Gastro & Ortho segments. The company gained 30 basis points market share in financial year 2026, the highest in any year since the Ranbaxy acquisition, according to its investor presentation.
The India formulations business now contributes to 33% of the overall sales.
Emerging Market sales also grew by 17.4% from last year to $306 million and formed 19% of the overall topline.
Shares of Sun Pharma are down to the lows of the day, currently trading 3% lower at ₹1,840.3. The stock is still up 11% in the last one month, as a result of which, it is still positive on a year-to-date basis.
For the quarter, Sun Pharma's profitability grew by 26% from last year to ₹2,714 crore, which is in-line with the CNBC-TV18 poll of ₹2,742 crore.
Revenue for the quarter stood at ₹14,612 crore, a growth of 12.8% compared to the previous year's figure of ₹12,959 crore. The figure is also marginally higher than the CNBC-TV18 poll of ₹14,528.1 crore.
Sun Pharma's results missed expectations on the operational front, with Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹3,955 crore, up 6.4% from the previous year's figure of ₹3,716 crore, but lower than the CNBC-TV18 poll of ₹4,043 crore.
EBITDA margin for the period narrowed by 160 basis points from last year to 27.1% from 28.7% last year and the number was also lower than the CNBC-TV18 poll figure of 27.8%.
Sun Pharma's Segment Sales
Sun Pharma's US formulations sales fell 1.1% from last year to $459 million during the March quarter. For the full year, the growth was a negative 0.9%.
Innovative medicines continue to grow for Sun Pharma, offsetting the decline in the generics business. US sales accounted for 28.8% of the overall topline.
Global Innovative Medicines sales increased by 20.1% during the quarter to $354 million.
India formulation sales grew by 14.8% year-on-year to ₹4,835 crore led by CVD, CNS, Gastro & Ortho segments. The company gained 30 basis points market share in financial year 2026, the highest in any year since the Ranbaxy acquisition, according to its investor presentation.
The India formulations business now contributes to 33% of the overall sales.
Emerging Market sales also grew by 17.4% from last year to $306 million and formed 19% of the overall topline.
Shares of Sun Pharma are down to the lows of the day, currently trading 3% lower at ₹1,840.3. The stock is still up 11% in the last one month, as a result of which, it is still positive on a year-to-date basis.
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