Sun Pharmaceutical Industries Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Sun Pharmaceutical Industries Ltd filed with BSE on 06 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Sun Pharma reported Q1 FY27 consolidated sales of INR1,51,836 million, up 10.1% year-on-year, with gross margin at 80.5% aided by product mix. India formulations grew 16% and Global Innovative Medicines sales rose 12.8% to USD351 million, while U.S. sales declined 9.7% mainly due to Lenalidomide erosion and added competition. Management discussed progress on the Organon acquisition, which has received Organon shareholder approval and remains on track to close, and provided updates on Leqselvi and Unloxcyt launches.
Numbers mentioned
Sales: INR1,51,836 million (Q1 FY27)
p. 3
“During the first quarter of FY27, sales were at INR1,51,836 million, registering a growth of 10.1% versus Q1 financial year FY26.”
Jayashree Satagopan, page 3 of the filed PDF · View the filing
Gross margin: 80.5% (Q1 FY27)
p. 4
“Gross margin was at 80.5% for the quarter, higher than the same period last year, mainly on account of better product mix.”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
EBITDA: INR 44,177 million (Q1 FY27)
p. 4
“EBITDA for the quarter was INR 44,177 million, an increase of 2.7% over Q1 last year.”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
EBITDA margin: 28.9% (Q1 FY27)
p. 4
“EBITDA margins came in at 28.9% while EBITDA margins were slightly lower, please note that Q1 FY26 had some benefit from Lenalidomide sales.”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
Reported net profit after tax: INR28,948 million (Q1 FY27)
p. 4
“Reported net profit after tax for quarter 1 FY27 was INR28,948 million, while adjusted net profit for the quarter was INR30,894 million.”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
EPS: INR12.10 per share (Q1 FY27)
p. 4
“EPS for the quarter was INR12.10 per share.”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
Effective tax rate: 27.8% (Q1 FY27)
p. 4
“Effective tax rate for the quarter was at 27.8% versus 24.3% in Q1 FY26.”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
Net cash: $3.4 billion (Q1 FY27)
p. 4
“Balance sheet of Sun continues to be strong with a net cash of $3.4 billion at the consolidated level.”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
Global Innovative Medicines sales: USD351 million (Q1 FY27)
p. 4
“In Q1 FY27, our innovative medicine sales were up 12.8% to reach USD351 million.”
Kirti Ganorkar, page 4 of the filed PDF · View the filing
India formulations sales: INR54,749 million (Q1 FY27)
p. 4
“Sales of India formulations were INR54,749 million for the quarter, recording a growth of 16%.”
Kirti Ganorkar, page 4 of the filed PDF · View the filing
India IPM market share: 8.5% (MAT June 2026)
p. 5
“Sun Pharma is ranked number 1 and holds 8.5% market share in the over INR2,527 billion Indian pharmaceutical market as per Pharmarack MAT June 2026.”
Kirti Ganorkar, page 5 of the filed PDF · View the filing
U.S. business sales: USD427 million (Q1 FY27)
p. 5
“Overall, the U.S. business reported sales of USD427 million for the quarter, declining by 9.7%.”
Richard Ascroft, page 5 of the filed PDF · View the filing
Emerging markets formulations revenue: USD311 million (Q1 FY27)
p. 6
“Our formulations revenues in emerging markets were USD311 million, up by 4.2% over quarter 1 last year.”
Aalok Shanghvi, page 6 of the filed PDF · View the filing
Rest of World formulations revenue: USD218 million (Q1 FY27)
p. 6
“Formulation revenues in Rest of the World for the quarter were USD218 million, marginally lower than quarter 1 last year.”
Aalok Shanghvi, page 6 of the filed PDF · View the filing
R&D investment: INR8,264 million (Q1 FY27)
p. 6
“Consolidated investments towards R&D for Q1 FY27 stands at INR8,264 million or 5.4% of sales.”
Dilip Shanghvi, page 6 of the filed PDF · View the filing
Leqselvi prescribers: surpassed 1,000 prescribers (June 2026)
p. 5
“In the month of June, we surpassed 1,000 prescribers, and we also delivered our strongest month since launch, demonstrating increased adoption and growing confidence in the brand.”
Richard Ascroft, page 5 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Full-year revenue growth — high single-digit growth · FY27
stated firmly by Jayashree Satagopan
p. 10
“Think we should stick on to the high single-digit growth for the full year.”
Jayashree Satagopan, page 10 of the filed PDF · View the filing
Effective tax rate — similar range as Q1 · until Organon closing
stated conditionally by Jayashree Satagopan
p. 4
“Going forward, and until Organon closing, we expect the tax rate to be in a similar range as in Q1.”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
Organon acquisition completion — Q4 FY27
stated firmly by Dilip Shanghvi
p. 6
“We expect the acquisition to be completed in Q4 of financial year '27 and an integration management office has been working on day one preparedness.”
Dilip Shanghvi, page 6 of the filed PDF · View the filing
R&D spend — annual guided number · FY27
stated firmly by Dilip Shanghvi
p. 8
“We have already guided for the annual number. And I think we should be able to meet those numbers.”
Dilip Shanghvi, page 8 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said it does not disclose product-wise revenue, and cited Levulan seasonality as a factor for the U.S.
Answered by Kirti Ganorkar
Asked by Amey Chalke: What is causing the deceleration in specialty medicines growth this quarter?
p. 7
“So we are expecting healthy growth to continue for innovative business in U.S., driven by new launches, as you know, Unloxcyt and Ilumya is also doing well. But we don't provide any product-wise revenue and growth at this moment.”
Kirti Ganorkar, page 7 of the filed PDF · View the filing
Management said it would stick with high single-digit guidance, citing forex effects across the P&L.
Answered by Jayashree Satagopan
Asked by Kunal Dhamesha: Will the company raise full-year revenue growth guidance given ~11% growth this quarter versus high single-digit guidance?
p. 10
“Think we should stick on to the high single-digit growth for the full year. Also, we should be a little mindful of the exchange-related impact that will come across all the line items in the P&L.”
Jayashree Satagopan, page 10 of the filed PDF · View the filing
Management attributed the year-over-year decline mainly to Lenalidomide, with a slight quarter-on-quarter decline from competition on a few products.
Answered by Richard Ascroft
Asked by Neha Manpuria: Is the sharp decline in U.S. generics only due to competition, and is this the new base for U.S. generics?
p. 11
“Slight decline based on the base business due to competition on a few products. But I mean, year-over-year, it's definitely Lenalidomide.”
Richard Ascroft, page 11 of the filed PDF · View the filing
Management cited geopolitical issues and difficult macroeconomic conditions in certain countries.
Answered by Aalok Shanghvi
Asked by Neha Manpuria: Why did emerging markets growth slow to 4% from high teens/20% in prior quarters?
p. 12
“So, I think emerging markets, I would characterize the impact as a combination of both the geopolitical issues and difficult macroeconomic conditions in certain countries.”
Aalok Shanghvi, page 12 of the filed PDF · View the filing
Management said 50% of growth came from volume and new products combined, indicating growth ahead of IPM volume growth.
Answered by Kirti Ganorkar
Asked by Shyam Srinivasan: What is the split of domestic growth between volume, new products and pricing?
p. 16
“So if you dissect the growth into price growth, volume-led growth and new product growth. So 50% of our growth is coming from volume and new products.”
Kirti Ganorkar, page 16 of the filed PDF · View the filing
Management cited annual increments, additional field force for new launches, and forex impact as the drivers.
Answered by Jayashree Satagopan
Asked by Surya Narayan Patra: Why is people cost rising ahead of revenue growth given no major sales force expansion plans mentioned previously?
p. 18
“So if one were to look at it, the reality is there is going to be a merit increase that happens, the additional field force, especially for”
Jayashree Satagopan, page 18 of the filed PDF · View the filing
Management confirmed ROW is flat in dollar terms but declined to give forward guidance beyond overall company guidance.
Answered by Abhishek Sharma
Asked by Foram Parekh: Is the ROW business flat around $218 million due to the Middle East war and will this run rate continue?
p. 19
“Yes, Foram, ROW is flat in dollar terms, but we do not give forward guidance for any particular, you should look at our overall revenue growth guidance that we have given for the year for the company.”
Abhishek Sharma, page 19 of the filed PDF · View the filing
Risks flagged
Lenalidomide erosion impacting U.S. generic sales
p. 5
“Our Innovative Medicines portfolio continued to grow, and this was offset by lower sales in the generic business, largely due to Lenalidomide erosion, but also due to additional competition in certain products.”
Richard Ascroft, page 5 of the filed PDF · View the filing
Additional competition in certain U.S. generic products
p. 11
“Yes. The largest part of the decline is Lenalidomide.”
Richard Ascroft, page 11 of the filed PDF · View the filing
Geopolitical and macroeconomic headwinds in emerging markets
p. 12
“So, I think emerging markets, I would characterize the impact as a combination of both the geopolitical issues and difficult macroeconomic conditions in certain countries.”
Aalok Shanghvi, page 12 of the filed PDF · View the filing
Rising effective tax rate as India tax benefits get exhausted
p. 4
“Sun had a significantly lower tax rate in India, which is now getting exhausted. And with varying tax rates in our different jurisdictions, our ETR has moved up.”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
Additional Organon acquisition-related exceptional charges expected in future quarters
p. 4
“There would be additional charges on this account in the subsequent quarters.”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
Seasonality in Levulan sales affecting quarter-over-quarter U.S. results
p. 5
“Quarter-over-quarter decline in the U.S. is due to a decline in generics and also some seasonality in Levulan.”
Richard Ascroft, page 5 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.