Sun Pharma Labs announces ₹3,000 crore greenfield expansion in Madhya Pradesh

Shares of Sun Pharmaceuticals opened green after the company announced major capacity additions in Madhya Pradesh. The shares traded 0.7% higher at ₹1,803 apiece on the NSE on Wednesday morning.

The exchange filing read, Board of Directors of Sun Pharma Laboratories Limited, wholly-owned subsidiary of the Company, has approved the proposal for an investment of ₹3,000 crores for setting up a greenfield formulations manufacturing facility in Madhya Pradesh.

In the quarter gone by, the company’s revenue for the quarter jumped 9% YoY to ₹14,783 crore, as against ₹13,291 crore in the Q2FY25. At the operational level, the EBITDA jumped ₹4,096 crore as against ₹3,810 crore in the same period last year. However, the EBITDA margin contracted slightly to 28.2%. Lastly, the net profit for the quarter ended jumped 3.5% YoY to ₹3,137 crore.

Earlier in November, Sun Pharmaceutical Industries and AstraZeneca Pharma India entered into a second brand partnership for Sodium Zirconium Cyclosilicate (SZC) in India. This exclusive agreement is aimed at further accelerating the availability of SZC, an innovative and highly effective treatment for Hyperkalaemia, to more patients across India.

Additionally, the company also launched its global innovative drug, ILUMYA (Tildrakizumab) in India for moderate-to-severe plaque psoriasis. A novel biologic treatment, ILUMYA, has been endorsed widely by dermatologists in the US and worldwide for several years as an effective and safe treatment of moderate to severe plaque psoriasis.

On a yearly basis, the shares of the company delivered flat returns with no major movements, while on a YTD basis, the shares traded in negative.