Sun Pharma Q1 Results: Net Profit Declines 19.6% YoY to Rs 2,278.6 Crore Despite 9.5% Revenue Growth

Sun Pharmaceutical Industries, one of India's leading drug manufacturers, reported a significant decline in its consolidated net profit for the first quarter (Q1) of the current financial year. For the quarter ending June 30, 2025, the company posted a net profit of Rs 2,278.6 crore, marking a 19.64% year-on-year decline compared to Rs 2,835.6 crore reported during the same period last year.

Sun Pharma Q1 Pharma Results

Despite the dip in profits, Sun Pharma witnessed healthy growth in its revenue from operations, which rose by 9.47% to Rs 13,851.4 crore in Q1 FY26, up from Rs 12,652.7 crore in the corresponding quarter of the previous fiscal.

The decline in profitability, despite an increase in revenue, may be attributed to higher expenses, pricing pressures, or other operational challenges. The company disclosed these financial results in a regulatory filing on Thursday, July 31.

The company's total expenses for the quarter increased to Rs 10,325.1 crore from Rs 9,761.8 crore in the previous year's June quarter. These expenses comprised costs related to materials consumed, employee benefits, depreciation and other operational charges.

Profit before tax stood at Rs 3,172.8 crore, lower than Rs 3,423.5 crore reported in the same period last year. Notably, exceptional items amounted to Rs 818 crore during the quarter, while there were no such items in Q1 FY25.

Sun Pharma EBITDA

Sun Pharma's earnings before interest, tax, depreciation and amortisation (EBITDA) rose to Rs 4,302 crore in Q1 FY26, up from Rs 3,608 crore in Q1 FY25, reflecting a year-on-year growth in operating profitability. The EBITDA margin also improved significantly to 31.06%, compared to 28.51% a year earlier, indicating better cost efficiency and stronger operational leverage.

Sun Pharma's US Business Operation

From a business segment perspective, the company's US formulation sales were reported at Rs 3,945 crore, accounting for 29.3% of its total consolidated revenue. Sales from Global Innovative Medicines surged 16.9% year-on-year to Rs 2,594 crore, making up 19.3% of the company's total consolidated revenue.

External sales of Active Pharmaceutical Ingredients (API) reached Rs 540.4 crore, marking a 9.3% increase and continuing to support both Sun Pharma's formulation operations and its global customer base.

Commenting on the Q1 performance, Dilip Shanghvi, Chairman and Managing Director of Sun Pharma briefed, "Sun had a strong performance during the quarter, where the overall growth reflects steady progress across all our markets. India continues to show strong momentum, contributing meaningfully to our performance. The U.S. launch of LEQSELVI represents an important step forward, offering a new treatment option for patients with severe alopecia areata. LEQSELVI augments our portfolio in dermatology and adds a growth engine to our Innovative Medicines business."

Sun Pharma Share Price

NSE: SUNPHARMA; Following the announcement of its Q1 FY26 results, shares of Sun Pharmaceutical Industries Ltd witnessed a sharp decline in trading on July 31. The stock closed at Rs 1,700.00, down Rs 33.80 or 1.95% for the day. The decline came after the company reported a 19.64% year-on-year fall in its consolidated net profit.

During the trading session, the stock opened at Rs 1,715.50 and touched an intraday high of Rs 1,748.00 before slipping to a low of Rs 1,694.00. The decline dragged the stock further away from its 52-week high of Rs 1,960.35, although it remains well above its 52-week low of Rs 1,553.05.