Sun Pharmaceutical Industries Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Sun Pharmaceutical Industries Ltd filed with BSE on 29 May 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 Q4 FY26 sales of INR 1,45,598 million, up 13.6% year-on-year, with EBITDA margin declining to 27.1% from 28.7% a year earlier due to lower milestone income, seasonality, and higher spending in certain geographies including the US. India formulations grew 14.8% and Global Innovative Medicines sales rose 20.1% to US$354 million, while US sales declined 1.1% as generic competition offset Innovative Medicines growth. Management guided to high single-digit consolidated top-line growth for FY27 and continued progress on the Organon acquisition integration, expected to close in Q4 FY27.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Sales: INR 1,45,598 million (Q4 FY26)
p. 3
“During the fourth quarter of FY '26, sales were at INR1,45,598 million, registering a growth of 13.6% vis-a-vis Q4 FY '25.”
Jayashree Satagopan, page 3 of the filed PDF · View the filing
Gross margin: 80.8% (Q4 FY26)
p. 3
“Gross margin was at 80.8% for the quarter, higher than the same period last year, largely on account”
Jayashree Satagopan, page 3 of the filed PDF · View the filing
EBITDA: INR 39,542 million (Q4 FY26)
p. 4
“EBITDA for the quarter was INR 39,542 million, an increase of 6.4% over Q4 last year.”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
EBITDA margin: 27.1% (Q4 FY26)
p. 4
“EBITDA margin came at 27.1%, lower both on year-on-year, which was 28.7% and on a quarter-on-quarter, which was 31.9%.”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
Reported net profit after tax: INR 27,140 million (Q4 FY26)
p. 4
“Reported net profit after tax for Q4 FY '26 was INR 27,140 million, while adjusted net profit for the quarter was INR 27,507 million.”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
Earnings per share: INR 11.31 per share (Q4 FY26)
p. 4
“Earnings per share for the quarter was INR 11.31 per share.”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
Effective tax rate: 22.3% (Q4 FY26)
p. 4
“Effective tax rate for the quarter stood at 22.3% vis-à-vis 19.8% in Q4 of FY '25 and 24.3% in Q3 of FY '26.”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
Net cash: $3.2 billion (Q4 FY26)
p. 4
“Balance sheet continues to be strong with a net cash of $ 3.2 billion at the consolidated level.”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
Full year sales: INR 582 Billion (FY26)
p. 4
“For the full year FY '26, sales were INR 582 Billion, a growth of 11.9%.”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
Full year EBITDA: INR 1,77,314 million (FY26)
p. 4
“EBITDA came in at INR1,77,314 million, a growth of 16.1%, with a resulting EBITDA margin of 30.3%.”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
Global Innovative Medicine sales: US$ 354 million (Q4 FY26)
p. 4
“In Q4 FY '26, our Innovative Medicine sales were up 20.1% to reach US$ 354 million.”
Kirti Ganorkar, page 4 of the filed PDF · View the filing
Global Ilumya sales: US$ 796 million (FY26)
p. 4
“Global Ilumya sales for FY '26 were US$ 796 million, having growth of 16.7% for the year.”
Kirti Ganorkar, page 4 of the filed PDF · View the filing
India formulation sales: INR 48,359 million (Q4 FY26)
p. 5
“Now coming to India, the sales of India formulations were INR 48,359 million for the quarter, recording a growth of 14.8%.”
Kirti Ganorkar, page 5 of the filed PDF · View the filing
Sun Pharma India market share: 8.4% (MAT March '26)
p. 5
“Sun Pharma is ranked number 1 and holds 8.4% market share in over INR 2,450 billion Indian pharmaceutical market as per PharmaTrac MAT March '26.”
Kirti Ganorkar, page 5 of the filed PDF · View the filing
US business sales: US$ 459 million (Q4 FY26)
p. 5
“Overall, the U.S. business reported sales of US$ 459 million for the quarter, declining by 1.1%.”
Richard Ascroft, page 5 of the filed PDF · View the filing
Emerging Markets formulation revenues: US$ 306 million (Q4 FY26)
p. 5
“Our formulation revenues in Emerging Markets were US$ 306 million, up by 17.4% over Q4 last year.”
Aalok Shanghvi, page 5 of the filed PDF · View the filing
Rest of World formulation revenues: US$ 220 million (Q4 FY26)
p. 6
“Formulation revenues in Rest of the World for the quarter were US$ 220 million, up 10%.”
Aalok Shanghvi, page 6 of the filed PDF · View the filing
R&D spend: INR 9,757 million (Q4 FY26)
p. 6
“Consolidated investments towards R&D for quarter 4 FY26 stands at INR 9,757 million or 6.7% of sales.”
Dilip Shanghvi, page 6 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.
Consolidated top line growth — high single-digit growth · FY27
stated conditionally by Dilip Shanghvi
p. 6
“On the guidance, we expect high single-digit consolidated top line growth for FY27 based on our current understanding of the regulatory and macro environment.”
Dilip Shanghvi, page 6 of the filed PDF · View the filing
R&D spend as % of sales — 6% to 7% of sales · FY27
stated firmly by Dilip Shanghvi
p. 6
“We expect our FY27 R&D spend to be 6% to 7% of the sales for the next year.”
Dilip Shanghvi, page 6 of the filed PDF · View the filing
Organon acquisition completion — completion of acquisition · Q4 FY27
stated firmly by Dilip Shanghvi
p. 6
“We expect the acquisition to be completed in Q4 FY27.”
Dilip Shanghvi, page 6 of the filed PDF · View the filing
Effective tax rate — around 25% · next year and beyond
stated firmly by Jayashree Satagopan
p. 17
“We expect the effective tax rate to be in the range of 25%.”
Jayashree Satagopan, page 17 of the filed PDF · View the filing
Ilumya BLA regulatory action for psoriatic arthritis — regulatory action date · late October '26
stated firmly by Kirti Ganorkar
p. 4
“During the quarter, U.S. FDA accepted the review of BLA of Ilumya for the treatment of adults with active psoriatic arthritis with regulatory action date set for late October '26.”
Kirti Ganorkar, page 4 of the filed PDF · View the filing
UNLOXCYT and LEQSELVI sales outside US — no sales factored in for other geographies · this year
stated firmly by Dilip Shanghvi
p. 15
“I think we are not factoring any sales out of this product in any geographies other than the US this year.”
Dilip Shanghvi, page 15 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 receptivity has been positive, citing the product's balance of efficacy and tolerability
Answered by Richard Ascroft
Asked by Kunal Dhamesha: Initial reception of UNLOXCYT launch and physician experience
p. 7
“Yes, the receptivity has been very positive. I think you may recall from the last call, we talked about the unique attributes of UNLOXCYT.”
Richard Ascroft, page 7 of the filed PDF · View the filing
Management said reflection in market share data takes time and reiterated aim to remain a leader
Answered by Kirti Ganorkar
Asked by Kunal Dhamesha: Semaglutide launch progress and market share in India
p. 7
“We launched Noveltreat on 21st March. So I would say what reflection you are seeing both in IMS or AWACS or even the prescription may not be adequate because any new product when we launch, it takes time for a complete reflection.”
Kirti Ganorkar, page 7 of the filed PDF · View the filing
CFO said the Revlimid impact was relatively small
Answered by Jayashree Satagopan
Asked by Surya Patra: Cause of sequential EBITDA margin drop and whether Revlimid-related
p. 8
“So the impact of Revlimid in this is relatively small.”
Jayashree Satagopan, page 8 of the filed PDF · View the filing
CFO said multiple small items added up, expecting normalization ahead
Answered by Jayashree Satagopan
Asked by Surya Patra: Whether there were one-off cost items driving margin decline
p. 8
“No, there are multiple small items that have together come up to this level. That is why I was also mentioning you should see some amount of normalization as we go forward.”
Jayashree Satagopan, page 8 of the filed PDF · View the filing
Chairman attributed it to compliance issues limiting new approvals and ongoing pricing pressure on existing products
Answered by Dilip Shanghvi
Asked by Tushar Manudhane: Reason for generics business struggling to grow
p. 12
“No, I think part of the question you answered yourself is that because of the compliance issue, we haven't been getting approval.”
Dilip Shanghvi, page 12 of the filed PDF · View the filing
Management clarified they are not providing explicit guidance this year, unlike last year
Answered by Abhishek Sharma
Asked by Damayanti Kerai: Whether the company would provide explicit EBITDA margin guidance for the year ahead
p. 17
“Just to clarify, Damayanti, we are not guiding whether they will be lower, same or higher versus last year.”
Abhishek Sharma, page 17 of the filed PDF · View the filing
Risks flagged
Generic business pricing pressure causing existing products to lose revenue annually
p. 12
“generic business is a business where pricing pressure will mean existing product will lose top line every year”
Dilip Shanghvi, page 12 of the filed PDF · View the filing
Compliance issues limiting new product approvals in the generics business
p. 12
“because of the compliance issue, we haven't been getting approval”
Dilip Shanghvi, page 12 of the filed PDF · View the filing
Higher spending in certain geographies including the US reducing EBITDA margin
p. 4
“reduced contribution from lenalidomide in Q4 versus Q3 and higher spend in certain geographies, including US”
Jayashree Satagopan, page 4 of the filed PDF · View the filing
Tariffs on branded innovation drugs following Section 232 investigation
p. 17
“The President did announce in April the resolution of the 232 investigations, laid out a time line for when those tariffs would apply.”
Richard Ascroft, page 17 of the filed PDF · View the filing
Additional competition impacting US generic business sales
p. 5
“For both the quarter and the full year, growth in Innovative Medicines was offset by lower sales in the generic business due to additional competition in certain products.”
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.