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Sun Pharma Profit Dips, But Revenue Climbs
1 Nov
Summary
- Consolidated net profit declined 36.36% year-on-year for the September quarter.
- Revenue grew 11.9% year-on-year driven by strong sales in India.
- Exceptional expenses for US litigation and Organon acquisition impacted earnings.
Sun Pharmaceutical Industries' consolidated net profit for the September quarter saw a significant 36.36% year-on-year decrease, amounting to ₹1,988.53 crore. This decline was primarily attributed to exceptional charges totaling approximately ₹1,269 crore, stemming from a US generic-pricing antitrust litigation settlement and expenses related to the proposed Organon acquisition.
Despite the profit drop, Sun Pharma's revenue from operations demonstrated healthy growth, rising 11.9% year-on-year to ₹16,198.71 crore. This growth was notably supported by a strong performance in India, where formulation sales increased by 17.3%, and by the innovative medicines segment. The company anticipates the Organon acquisition will finalize by early 2027, subject to closing conditions.
Managing Director Kirti Ganorkar highlighted sustained momentum in India and emerging markets. Developments in the innovative medicines portfolio include US approval for Ilumya in active psoriatric arthritis and licensing of lerodalcibep. Choice Institutional Equities noted that while core business performance was strong, exceptional charges impacted reported earnings. They project continued growth, partly offset by US business pressures, with India and emerging markets remaining key drivers.
