Sun Pharmaceutical Industries Limited – Investor Presentation Summary

Key Operational Highlights

  • Global presence across over 100 countries with 47,000+ employees
  • 40 manufacturing facilities with capabilities across injectables, sprays, ointments, creams, liquids, tablets and capsules
  • Operates in Innovative Medicines, branded generics, generics & APIs segments
  • Key drivers include focus on complex generics, high entry barrier segments, and innovative product development

Segment-wise Performance

  • US Formulations: FY26 sales of ₹168,242 million (3.6% YoY growth), 13th largest generics company in US, 677 ANDAs & 70 NDAs filed, 558 ANDAs & 57 NDAs approved
  • India Formulations: FY26 sales of ₹192,904 million (14.0% YoY growth), largest pharma company in India with 8.4% market share, ranked No. 1 with 12 classes of prescribers
  • Emerging Markets: FY26 sales of ₹111,865 million (18.8% YoY growth), presence in over 80 countries across 5 continents, focus markets include Romania, Russia, South Africa, Brazil & Mexico
  • Rest of World: FY26 sales of ₹85,684 million (19.6% YoY growth), includes Western Europe, Canada, Japan, Australia & New Zealand, Israel
  • API Business: FY26 sales of ₹21,853 million (2.6% YoY growth), approximately 400+ APIs, 409 DMF/CEP approvals & 543 DMF/CEP Filings to date

Financial Highlights

Annual Performance (All Figures in Rs mn):

  • Revenue: ₹582,201 (12% YoY growth)
  • Gross Profit: ₹466,764 (13% YoY growth)
  • EBITDA: ₹177,314 (16% YoY growth)
  • PAT: ₹114,794 (5% YoY growth)
  • Adjusted Net Profit: ₹124,015 (3% YoY growth)
  • EPS: ₹47.8 (5% YoY growth)
  • Adjusted EPS: ₹51.7 (3.5% YoY growth)

Margins:

  • Gross Margin: 80.2%
  • EBITDA Margin: 30.3%
  • Net Margin: 19.6%
  • Adjusted Net Margin: 21.2%

Q1 FY27 Performance:

  • Revenue: ₹151,836 (10.1% YoY growth)
  • Gross Profit: ₹122,204 (20.1% YoY growth)
  • EBITDA: ₹44,177 (2.7% YoY growth)
  • PAT: ₹28,948 (27.0% YoY growth)

Drivers of financial performance include growth across all business segments, particularly strong performance in Emerging Markets and Rest of World formulations.

Geographical Revenue Split

FY26 Revenue Composition:

  • India Formulations: ₹192,904 million (33.1% of total)
  • US Formulations: ₹168,242 million (28.9% of total)
  • Emerging Markets: ₹111,865 million (19.2% of total)
  • Rest of World: ₹85,684 million (14.7% of total)
  • API: ₹21,853 million (3.8% of total)
  • Others: ₹1,654 million (0.3% of total)

Balance Sheet Snapshot

As of March 2026 (All Figures in Rs mn):

  • Shareholders Funds: ₹835,701 (16% YoY growth)
  • Loan Funds: ₹40,816 (118% YoY growth)
  • Net Fixed Assets: ₹260,409 (28% YoY growth)
  • Investments: ₹247,225 (35% YoY growth)
  • Cash and Bank Balances: ₹116,031 (2% YoY growth)
  • Inventory: ₹114,929 (12% YoY growth)
  • Sundry Debtors: ₹155,097 (19% YoY growth)
  • Sundry Creditors: ₹73,338 (19% YoY growth)

Financial Health Insights: Strong cash position with ₹116,031 million in cash and bank balances, healthy growth in shareholder funds.

Capex & Cash Flow Health

  • R&D Spend: ₹35,540 million (9.4% YoY growth, 6.1% of sales)
  • Capital Expenditure: Not Specified
  • Free Cash Flow: Not Specified
  • Operating Cash Flow: Not Specified
  • Net Debt Movement: Not Specified

Investment Rationale: Focus on developing complex products across multiple dosage forms and building Innovative Medicines pipeline.

Strategic & R&D Initiatives

Innovative Medicines Portfolio:

  • 29 products marketed globally in Dermatology, Ophthalmology and Oncology
  • Represents 22% of sales in FY26 vs 7.3% of sales in FY18
  • Key products include Ilumeya, Winlevi, Cequa, Absorica, Yonsa, Sezaby, Xelpros

R&D Pipeline:

  • Cumulative R&D spend of ~₹345 billion to date
  • Over 2,700 headcount globally across several R&D centers
  • Pipeline includes Ilumya (psoriatic arthritis), Fibromun (soft tissue sarcoma, glioblastoma), Nidlegy (locally advanced melanoma), GL0034 (type 2 diabetes), MM-II (pain in osteoarthritis)

Strategic Acquisitions & Partnerships:

  • 2026: Announced Organon & Co. acquisition to enhance global scale, add Women's Health and biosimilars
  • 2025: Acquired Checkpoint Therapeutics, Inc., immunotherapy and targeted oncology company
  • 2024: Completed Taro merger, now 100% subsidiary
  • 2023: Acquired Concert Pharmaceuticals, Inc. adding late-stage innovative product to dermatology franchise

Industry Trends & Business Environment

Macro/Industry Trends: Favourable macroeconomics driving increased pharmaceutical consumption in emerging markets

Impact on Company: Expansion into high-growth markets, focus on profitable growth across all segments

Management Commentary & Growth Outlook

Strategic Outlook: Target mid to high single digit consolidated topline growth for FY26, focus on sustainable and profitable growth, focus on improving overall return ratios

FY Guidance: Not Specified

Market Share Targets: Maintain leadership position in India market, enhance share of innovative/branded business in US

Risks and Opportunities: Ensuring 24x7 compliance to cGMP, continuously enhance systems and processes for global regulatory standards

ESG Updates

Environmental Performance (FY 2025-26):

  • 43% Energy sourced from renewable sources
  • 4.76% reduction in absolute Scope 1 and Scope 2 emissions compared to baseline year 2020
  • 16.05% reduction in absolute water consumption compared to baseline year 2020
  • ~37.93% of hazardous waste disposed was co-processed

Social Performance:

  • 8,727 new hires
  • 17.97% gender diversity
  • 0 fatalities
  • ₹2,068 million spent on CSR activities
  • Approximately 2.23 million beneficiaries reached through CSR initiatives

Governance Performance:

  • 95.24% Average Board meeting attendance
  • 50% Independent board directors
  • 63% of Board Members specializing in pharmaceutical industry experience