Sun Pharma Share Price Falls Despite Strong Q4 Results; Should You Buy or Sell This Pharma Stock?

Shares of Sun Pharmaceutical Industries traded slightly lower on Monday, May 25, even after the pharmaceutical major reported strong fourth-quarter earnings for FY26 and announced a final dividend for shareholders. Investors appeared cautious despite healthy growth in profit and revenue, while analysts continued to remain positive on the stock's long-term outlook.

Sun Pharma Share Price Today on NSE: Stock Slips After Q4 Results

On the NSE, Sun Pharma shares were trading at Rs 1,838.60 around 12:16 pm on May 25, down Rs 6 or 0.33% for the day. The stock opened at Rs 1,840 and touched an intraday high of Rs 1,849 and a low of Rs 1,825 during the session. The company's 52-week high stands at Rs 1,916.60, while the 52-week low is Rs 1,548.

Sun Pharma Q4 Results: Profit Jumps 26%, Revenue Crosses Rs 14,600 Crore

India's largest pharmaceutical company reported a consolidated net profit of Rs 2,714 crore for the January-March quarter of FY26, registering a 26.2% increase compared with Rs 2,150 crore reported during the same quarter last year.

Revenue from operations also posted strong growth, rising 12.8% year-on-year to Rs 14,612 crore from Rs 12,959 crore in Q4FY25, supported by stable domestic demand and continued performance across key global markets.

The company also disclosed exceptional gains worth nearly Rs 1,700 crore during FY26. This included exceptional items of Rs 1,307.5 crore along with an exceptional tax credit of Rs 385.4 crore for the financial year ended March 31, 2026.

Should You Buy Sun Pharma Stock? Check Motilal Oswal's Target Price and Recommendation

Brokerage firm Motilal Oswal Financial Services maintained its "Buy" recommendation on Sun Pharma with a target price of Rs 2,120, implying a potential upside of around 15% from current levels.

The brokerage highlighted the company's expanding innovative medicines portfolio, stronger branded generics business and improving execution capabilities as key long-term growth drivers.

"SUNP remains on track to expand its innovative medicines portfolio through a) product filing with USFDA, b) commercial partnerships, and c) increasing reach. Further, superior execution in branded generics positions SUNP well to outperform the industry. These benefits would be offset to some extent by ongoing price erosion in the US generics segment. Accordingly, we build in 12% earnings CAGR over FY26-28. Maintain BUY," Motilal Oswal Financial Services said.

500% Final Dividend Announced for Sun Pharma Shareholders; Check Payout

Sun Pharma's board also recommended a final dividend of Rs 5 per equity share of face value Re 1 for FY26, translating into a 500% dividend payout.

Earlier during the financial year, the company had already paid an interim dividend of Rs 11 per share. This takes the total dividend payout for FY26 to Rs 16 per share, unchanged from the previous financial year.

Sun Pharma FY26 Results: EBITDA and Margins Improve

For the full financial year FY26, Sun Pharma reported net profit of Rs 11,479.4 crore, reflecting annual growth of 5%. Revenue from operations increased 11.9% to Rs 58,220.1 crore.

The company also posted improved operating performance during the year. EBITDA rose 16.1% to Rs 17,731.4 crore, while EBITDA margin expanded to 30.3% from 29% in FY25, indicating better operational efficiency and stronger contribution from high-margin businesses.

India Business Continues to Lead Growth

Sun Pharma's domestic formulations business remained one of the strongest contributors to overall growth during the quarter.

Revenue from India formulations increased 14.8% in Q4FY26, driven by healthy demand across therapies including cardiology, gastroenterology, orthopaedics and central nervous system treatments.

For the full financial year, the India business contributed nearly 33% of the company's consolidated sales after recording 14% annual growth.

US Business Stable; Emerging Markets Continue Expansion

The company's US formulations business remained relatively steady during the quarter. Revenue from the US market stood at 459 million dollars and contributed around 29% of Sun Pharma's consolidated FY26 sales.

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