Home / Business and Economy / Sun Pharma Profit Soars, Yet Shares Slip on Margin Woes
Sun Pharma Profit Soars, Yet Shares Slip on Margin Woes
3 Aug
Summary
- Sun Pharma's Q1 FY27 profit rose 27% to Rs 2,895 crore.
- Revenue increased 10% to Rs 15,300 crore, driven by India sales.
- US sales declined 9.7%, impacting investor sentiment despite profit growth.
As of August 3, 2026, Sun Pharmaceutical Industries announced its Q1 FY27 financial results, revealing a significant 27% year-on-year increase in consolidated net profit, reaching Rs 2,895 crore. The company's revenue from operations saw a healthy 10% rise, crossing Rs 15,300 crore.
Domestic formulations business emerged as a key growth driver, with India sales surging 16% to Rs 5,475 crore. This resilience in the home market offset challenges faced overseas, particularly in the United States.
Despite the overall profit and revenue growth, Sun Pharma's shares experienced a dip. Investors were concerned by a 9.7% year-on-year decline in US formulations sales and a contraction in operating margins to 28.9% from 31.06%.
Brokerage firm Motilal Oswal maintained a 'Buy' recommendation with a target price of Rs 2,310, citing confidence in the company's expanding innovative medicine portfolio and future earnings growth.
