New Delhi, May 22: Sun Pharmaceutical Industries reported a mixed performance for FY26, with strong consolidated earnings but continued weakness in its US generics business, which remains a key concern for the company’s largest overseas market.
The company posted a 26% year-on-year rise in consolidated net profit for Q4 FY26 at ₹2,714 crore, while revenue grew 13% to ₹14,611 crore, supported by strong performance across global markets. However, on a sequential basis, both profit and revenue declined due to softer seasonal performance and continued pressure in the US generics segment. For the full year FY26, net profit rose 5% to ₹11,479 crore, while revenue increased 11% to ₹58,462 crore.
US Generics Weakness Continues to Weigh on Performance
Sun Pharma’s US business, which accounts for a significant share of global revenue, remained under pressure throughout FY26. US sales declined 0.9% year-on-year to $1,904 million, reflecting persistent challenges in the generics portfolio even as specialty medicines showed steady growth.
Quarterly trends were uneven, with some recovery in Q3 FY26, but overall performance remained subdued. The company reported that pricing pressure and competition in the generics space continued to offset gains from new product launches and specialty drugs.
Innovative Medicines Cross $1 Billion Milestone
A key positive for the company was the strong growth in its innovative medicines segment, which crossed the $1 billion revenue milestone during FY26. This marks a strategic shift for the company toward higher-margin specialty therapies.
Dilip Shanghvi highlighted that research and development investment stood at ₹975 crore in Q4 FY26, accounting for 6.7% of sales, with a strong focus on innovative drug development.
The company expects R&D spending to remain in the 6–7% range of sales in FY27 as it continues building its specialty pipeline.
US Pipeline Expansion and Specialty Focus
Sun Pharma continues to strengthen its US pipeline with 552 approved ANDAs and 122 filings pending approval with the US FDA. The specialty portfolio includes 57 approved NDAs, reflecting its growing presence in complex and high-value therapies.
Management also confirmed that its innovative medicines business outside the US is gaining traction, supported by the expansion of key products like Illumya across 40 countries.
Strategic Bets on Specialty Drugs and Organon Acquisition
The company is investing in newly launched specialty drugs such as Leqselvi for alopecia areata and Unloxcyt for skin cancer, though meaningful international contributions are not expected in FY27 due to regulatory timelines.
Sun Pharma also emphasized the strategic importance of its acquisition of Organon, which is expected to expand its biosimilars and women’s health portfolio while strengthening its global specialty business footprint.
Outlook for FY27
The company has guided for high single-digit consolidated revenue growth in FY27, subject to macroeconomic and regulatory conditions. While the US generics segment remains under pressure, the expanding specialty business is expected to gradually become a larger driver of growth.
