Sun Pharma Q2 Results FY27: Net Profit Falls 36% to Rs 1,989 Crore, Revenue Rises 12%; Share Price Jumps

Sun Pharmaceutical Industries Ltd, India's largest pharmaceutical company by market capitalisation, saw its shares rise on Friday, October 30, even as its September-quarter earnings reflected a steep decline in reported net profit.

Sun Pharma Share Price Today After Q2 Results

The large-cap pharma stock was trading at Rs 1,808, up Rs 47 or 2.67% at around 3:03 pm IST on the NSE. It opened at Rs 1,769, touched an intraday high of Rs 1,855 and slipped to a low of Rs 1,766.20 during the session.

The results, announced on October 30, showed that exceptional charges had a significant impact on the bottom line. However, the company's revenue growth and adjusted profitability indicated that the reported profit decline did not fully reflect the performance of its core business.

Sun Pharma Q2 Results: Net Profit Falls 36% to Rs 1,989 Crore

Sun Pharma reported consolidated net profit of Rs 1,989 crore for the September quarter of FY27, down 36% from Rs 3,118 crore in the corresponding quarter of the previous financial year. On a sequential basis, net profit declined 31% from Rs 2,895 crore in Q1 FY27.

Revenue from operations, however, increased 12% year-on-year to Rs 16,199 crore from Rs 14,478 crore. Revenue also rose 6% sequentially from Rs 15,300 crore in the June quarter, indicating continued sales momentum despite pressure on reported earnings.

Adjusted net profit, excluding exceptional items, stood at Rs 3,162 crore, up 1% from Rs 3,118 crore a year earlier. The difference between reported and adjusted profit highlights how exceptional expenses weighed on the headline numbers during the quarter.

Exceptional Charges of Rs 1,269 Crore Weigh on Sun Pharma Earnings

Sun Pharma recognised total exceptional charges of Rs 1,269 crore during Q2 FY27. The largest component was a charge of Rs 923 crore, including legal costs, following a September settlement agreement signed by subsidiaries with a plaintiff in US generic pharmaceuticals pricing antitrust litigation.

The company also recorded Rs 346 crore in expenses related to its proposed acquisition of Organon. These costs included due diligence, legal, filing and financing arrangement expenses. A tax benefit of Rs 95 crore partly offset the impact of the exceptional items.

Sun Pharma's EBITDA Rises 5%, Operating Margin Contracts

Sun Pharma's operating performance showed growth, although profitability margins came under pressure. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 5% year-on-year to Rs 4,744 crore from Rs 4,527 crore.

However, the EBITDA margin narrowed to 29.3% from 31.3% in the corresponding quarter last year. This indicates that operating earnings grew more slowly than revenue, with the company retaining a smaller share of sales as EBITDA. The margin trend will remain an important metric for investors as they assess cost pressures and the sustainability of earnings growth.

India Formulations Business Leads Revenue Growth

Sun Pharma's domestic formulations business remained a key growth driver during the quarter. India sales rose 17% year-on-year to Rs 5,552 crore, accounting for 34.5% of consolidated revenue and making the country the company's largest geographical market.

The drugmaker launched 14 products in India during the September quarter, taking the total number of launches in the first half of FY27 to 19. New product introductions can support the domestic business by expanding its portfolio and creating additional growth opportunities across therapeutic categories.

The performance in India helped sustain consolidated revenue growth even as the company faced exceptional expenses and margin pressure. Going forward, investors will watch whether domestic sales momentum, product launches and growth across other markets can support operating profitability while the impact of litigation and Organon-related costs is assessed.

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