Sun Pharmaceutical Industries shares declined 2% to ₹1,950.60 in early Monday trade as of 09:21 am, according to reports from Moneycontrol. The stock, a prominent constituent of the Nifty 50 index, experienced this price movement despite the company reporting strong quarterly and annual financial growth. The market reaction suggests investor focus may be shifting beyond the positive financial performance to other factors affecting the pharmaceutical major. However, recent developments show that Sun Pharma just posted profits that blew past expectations, driven by strong other income and a global specialty portfolio growing at 13% a year, as reported by Motilal Oswal Financial Services. Now making up nearly a quarter of quarterly sales, this international push is becoming the company's real growth engine.
For the quarter-ending June 2026, Sun Pharmaceutical Industries reported consolidated revenue of ₹15,299.88 crore, representing a 4.7% increase from ₹14,611.79 crore recorded in the preceding quarter-ending March 2026, as reported by Moneycontrol. The company's consolidated net profit climbed to ₹2,910.80 crore in June 2026, up 6.87% from ₹2,723.72 crore in March 2026. Earnings Per Share (EPS) for the quarter-ending June 2026 stood at ₹12.10, showing improvement from ₹11.30 in the previous quarter. However, recent reports indicate that the company's June quarter net profit and revenue missed the Street's consensus view, though the bottom line rose at its fastest pace in seven quarters. According to Motilal Oswal, the company's global specialty portfolio growing at 13% a year is now becoming a significant growth driver, with this international push making up nearly a quarter of quarterly sales.
According to Informist Media reports, Sun Pharmaceutical Industries' growth in the US market through 2026-27 continues to be a concern for analysts, with formulation sales in the US falling 9.7% year-on-year to $427 million mainly due to the absence of generic Revlimid sales. However, the drug's earnings before interest, taxes, depreciation, and amortisation for the June quarter likely grew by about 14% and its margin by 20 basis points. Looking ahead, the approval for psoriatic arthritis therapy Ilumya, growth in Unloxcyt and Leqselvi, and the launch of Semaglutide in key markets are identified as important catalysts for the company. The company's launch of semaglutide in Brazil and South Africa acts as a positive lever for future growth. However, Motilal Oswal notes that US generic sales dipped due to tougher competition and one fading blockbuster drug, which remains a key challenge for the company's US operations.
Multiple brokerages have revised their estimates and maintained positive ratings on Sun Pharmaceutical Industries. Nuvama Institutional Equities revised its estimates for the company's EBITDA for FY27 and FY28 upwards by around 1% and those for earnings per share by around 2%, while retaining its 'buy' rating and tweaking its target price higher to ₹2,360 from ₹2,115. Systematix Institutional Equities maintained its 'buy' recommendation with an unchanged target price of ₹2,366, noting that the quarter remained encouraging with branded pie sustaining growth momentum. However, Emkay Global Financial Services was relatively cautious, cutting its earnings estimates by around 5% and trimming its target price by 5% to ₹2,100 while retaining its 'add' recommendation, citing expectations of sequential uptick in US sales not materializing yet. Motilal Oswal analysts are staying bullish, expecting steady double-digit profit growth over the next two years, supported by the company's strong international performance and growing specialty portfolio.
As reported by Moneycontrol, Sun Pharmaceutical Industries has maintained a consistent track record of returning value to shareholders through various corporate actions. The company announced a final dividend of ₹5.00 per share (500%) on May 22, 2026, with an effective date of July 07, 2026. Prior to this, an interim dividend of ₹11.00 per share (1100%) was announced on January 20, 2026, becoming effective on February 05, 2026. The company has also executed stock splits and bonus issues, with the most recent being a 1:1 bonus ratio announced on May 28, 2013, with an ex-bonus date of July 29, 2013.
