Sun Pharmaceutical Industries Ltd.Strong India Offsets U.S. Decline

Sun Pharmaceutical Industries delivered a strong first quarter for FY27 with total revenue reaching ₹1,51,836 million, representing 10.1% year-over-year growth that exceeded management's high single-digit guidance.

The India formulations business was the standout performer, recording 16% growth to ₹54,749 million and capturing 8.5% market share to maintain the number one position in the domestic pharmaceutical market. This growth was balanced, with 60% driven by volume expansion and new product launches, significantly outpacing the industry's 2% volume growth. However, the U.S. business declined 9.7% to $427 million due to Lenalidomide patent erosion and increased competition.

Global innovative medicines grew 12.8% to $351 million, bolstered by specialty launches Leqselvi and Unloxcyt showing strong momentum. Gross margin expanded to a record 80.5% on favorable product mix, while EBITDA grew 2.7% to ₹44,177 million with margins at 28.9%. The Organon acquisition remains on track for Q4 FY27 completion, with the company maintaining a strong ₹3.4 billion net cash position to support the transaction.