Sun Pharmaceutical Q1 FY27 result: Net profit jumps 27% YoY; US formulation sales decline to $427 million

The drugmaker’s revenue from operations grew 10% to ₹15,300 crore in the June quarter, as against ₹13,851 crore registered in the year-ago period.

Sun Pharma' operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), jumped 3% to ₹4,418 crore as compared to ₹4,302 crore in the corresponding quarter of the previous fiscal year.

Its EBITDA margin, however, contracted to 28.9% in the reporting quarter from 31.06% in Q1 FY26.

Sun Pharma’s India business sales reached ₹5,475 crore, reflecting a healthy growth of 16%. The India business contributed 36.1% to total consolidated sales. Additionally, Sun Pharma’s market share improved to 8.5% from 8.2%, according to the Pharmarack MAT June 2026 report, indicating continued outperformance versus the broader industry.

For Q1FY27, the company launched 5 new products in the Indian market. Its research and development (R&D) investment in the reporting quarter stood at ₹826 crore at 5.4% of sales.

During the quarter, three ANDAs were filed by Sun Pharma and had received approval for 6 ANDAs. The firm’s portfolio includes 57 approved NDAs, while 13 NDAs await US FDA approval.

The drug major reported that its API portfolio continues to support both its formulation business and customers across geographies. External API sales stood at ₹597 crore, registering a growth of 10.5% during the period.

Global market updates

Sun Pharma reported that its US formulation sales stood at $427 million, reflecting a decline of 9.7% in the reporting quarter. The decline in the generics business was partially offset by growth in the Innovative Medicines segment. The US market contributed approximately 26.6% to the company’s total consolidated sales.

The emerging markets' formulations sales were $311 million, rising 4.2% and accounting for 19.4% of total consolidated sales.

Furthermore, formulation sales in the rest of the world markets were $218 million and accounted for 13.6% of total consolidated sales.

The company said its Global Innovative Medicines sales were at $351 million, registering a growth of 12.8% and contributing 21.9% to overall sales.

“Our performance during the quarter was driven by strong momentum in India as well as Innovative Medicines, which delivered robust growth across the U.S. and international regions. Recent semaglutide approvals in India, Brazil and South Africa underscore our capabilities in developing complex peptide products for patients globally. Organon shareholders have approved the proposed acquisition by Sun, which is on track to close in early 2027,” said Kirti Ganorkar, Managing Director, Sun Pharma.

Following the earnings, Sun Pharma shares were trading at ₹1,991 apiece on the National Stock Exchange, falling 0.5%.