Nature of the Event

Sun Pharmaceutical Industries Limited disclosed its unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026, pursuant to SEBI Listing Regulations 30 and 33. The board meeting was held on October 30, 2026, and commenced at 10:45 AM IST.

Financial Performance Highlights

Consolidated Results (Q2FY27 vs Q2FY26):

  • Revenue from operations: ₹161,987.1 million vs ₹144,783.1 million (11.8% growth)
  • Profit before exceptional items and tax: ₹44,282.0 million vs ₹41,676.1 million (6.3% growth)
  • Net profit: ₹19,885.3 million vs ₹31,179.5 million
  • Adjusted net profit: ₹31,620 million (1.4% growth)
  • EBITDA: ₹47,439 million vs ₹45,271 million (4.8% growth)
  • EBITDA margin: 29.3% vs 31.3%
  • EPS: ₹8.3 vs ₹13.0

Consolidated Results (H1FY27 vs H1FY26):

  • Revenue from operations: ₹314,985.9 million vs ₹283,297.1 million (11.0% growth)
  • Profit before exceptional items and tax: ₹87,311.0 million vs ₹81,583.8 million (7.0% growth)
  • Net profit: ₹48,833.2 million vs ₹53,965.8 million
  • Adjusted net profit: ₹62,515 million vs ₹61,141 million (2.2% growth)
  • EBITDA: ₹91,616 million vs ₹88,287 million (3.8% growth)
  • EBITDA margin: 29.1% vs 31.2%
  • EPS: ₹20.4 vs ₹22.5

Standalone Results (Q2FY27):

  • Revenue from operations: ₹61,419.2 million
  • Profit before tax: ₹12,029.9 million
  • Net profit: ₹8,712.9 million
  • EPS: ₹3.6

Segment Performance

Q2FY27 Sales Breakdown:

  • India Formulations: ₹55,522.8 million (34.5% of total, 17.3% YoY growth)
  • US Formulations: US$455 million (27% of total, 8.2% decline)
  • Emerging Markets Formulations: US$350 million (20.7% of total, 7.6% growth)
  • Rest of World Formulations: US$241 million (14.3% of total, 3.1% growth)
  • API External Sales: ₹4,888.6 million (13.7% growth)
  • Global Innovative Medicines: US$356 million (21.1% of total, 6.9% growth)

H1FY27 Sales Breakdown:

  • India Formulations: ₹110,271.7 million (16.6% growth)
  • US Formulations: US$882 million
  • Emerging Markets Formulations: US$661 million (6.0% growth)
  • Rest of World Formulations: US$460 million (1.5% growth)
  • API External Sales: ₹10,860.9 million (11.9% growth)
  • Global Innovative Medicines: US$707 million (9.8% growth)

Exceptional Items

Q2FY27 Consolidated:

  • Antitrust litigation settlement: ₹9,226.7 million (with tax benefit of ₹953.4 million)
  • Acquisition-related costs for Organon: ₹3,461.6 million
  • Labour code implementation costs: ₹370.9 million (with tax credit of ₹94.3 million)

H1FY27 Consolidated:

  • Total exceptional items: ₹14,729.2 million
  • Total exceptional tax credit: ₹1,047.7 million

Key Developments

Organon Acquisition:

  • Definitive agreement signed on April 27, 2026, to acquire all outstanding shares of Organon & Co. for $14.00 per share in all-cash transaction
  • Enterprise valuation: $11.75 billion
  • Regulatory approvals secured in majority of regions, remaining jurisdictions tracking on schedule
  • Integration planning progressing across functions and workstreams

Product Approvals & Launches:

  • Ilumya approved in US for treatment of adults with active psoriatic arthritis
  • Unloxcyt received preferred NCCN recommendation
  • Licensed lerodalcibep (PCSK9 inhibitor) for markets outside US and China
  • Launched 14 new products in India during Q2, 19 products year-to-date

Market Position:

  • India's No. 1 Pharma company with market share increased to 8.6% from 8.3% (Pharmarack MAT Sept-2026)
  • Ranked No. 1 by prescriptions in 12 doctor categories (SMSRC Jul-Sept 2026 report)

R&D Update

  • Q2FY27 R&D investment: ₹7,784.2 million (4.8% of sales)
  • H1FY27 R&D investment: ₹16,047.7 million (5.1% of sales)
  • Innovative R&D pipeline includes five novel entities in clinical stage
  • US market: 561 approved ANDAs, 120 ANDAs awaiting FDA approval (including 26 tentative approvals)
  • 4 ANDAs filed and 3 ANDAs approved during the quarter
  • 58 approved NDAs, 12 NDAs awaiting US FDA approval

Innovative Medicines Pipeline

| Candidate | Indication | Current Phase | Next Milestone |

| Ilumya | psoriatic arthritis | Approved in US | Launch |

| Fibromun | soft tissue sarcoma | Phase 2 completed | Start of Phase 3 |

| Fibromun | Glioblastoma | Phase 2 | Regulatory filing |

| GL0034 | type 2 diabetes | Phase 2 | Topline data during 2HCY27 |

| NidlegyTM | locally advanced melanoma | Filing with EMA | Approval and launch |

| NidlegyTM | locally advanced BCC | Phase 3 | Regulatory filing |

| NidlegyTM | locally advanced cSCC | Phase 2 | Regulatory filing |

| MM-II | pain in osteoarthritis | Phase 2 completed | Partnership for commercialization |

Capital Structure & Balance Sheet

  • Paid-up equity share capital: ₹2,399.3 million (face value ₹1 each)
  • Consolidated total assets: ₹1,148,384.3 million as of September 30, 2026
  • Strong balance sheet with net cash position of US$3.3 billion
  • Successful allotment of debut non-convertible debentures of ₹7,816 crore

Tax Regime Change

  • Company opted for new regime under section 115BAA of Income Tax Act, 1961 for FY 2026-27
  • Concessional tax rate of 25.168% instead of regular corporate tax rate of 34.944%
  • Deferred tax assets and liabilities remeasured at new applicable rate

Subsidiary Updates

  • Acquired 100% of Innovcare Lifesciences Private Limited on July 06, 2026 for ₹2,711.9 million
  • Composite Scheme of Arrangement approved by NCLT on October 7, 2025, for amalgamation of five wholly-owned subsidiaries
  • 91 subsidiaries, 1 joint venture, and 11 associates included in consolidated results

Exchange Rates

  • Q2FY27: US$1 = ₹95.58
  • Q1FY27: US$1 = ₹94.70
  • Q2FY26: US$1 = ₹87.35

Upcoming Events

  • Earnings call scheduled for October 30, 2026 at 6:30 PM IST
  • Webcast and audio dial-in available for participants