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Informist, Thursday, May 21, 2026

By Gunjan Rajput

NEW DELHI - Sun Pharmaceutical Industries Ltd. is expected to report a year-on-year rise in its net profit and revenue for the March quarter, driven by India formulations business and specialty products, according to analysts.

The country's largest pharmaceutical company in terms of sales is expected to report a nearly 11% on-year rise in consolidated net profit for the March quarter to nearly INR 27.86 billion, according to the average of estimates from 12 brokerages. The company's revenue is expected to rise nearly 13% on year to nearly INR 145.94 billion, the estimates show. On a sequential basis, the net profit is likely to decline nearly 28%, while revenue is expected to fall nearly 6%. Sun Pharmaceutical will announce its March quarter earnings on Friday.

The highest estimate for the company's net profit is nearly INR 34.22 billion from Nuvama Wealth Management Ltd., while the lowest estimate of over INR 23 billion is from Elara Securities (India) Pvt. Ltd. The highest revenue estimate is by ICICI Securities Ltd. at INR 148.07 billion, and the lowest is by Elara Securities (India) Pvt. Ltd. at nearly INR 144.30 billion.

The Mumbai-based drugmaker's revenue from India operations is expected to rise 13-15%, which was supported by new product launches and steady demand. Emerging and rest-of-the-world markets are also likely to post healthy growth, boosted by branded generics traction and depreciation of the rupee, according to brokerages.

Analysts have mixed views about the company's performance in the US market. "Recent launch of Unloxcyt is expected to provide support to growth in the US market," said SMIFS Ltd. However, Nuvama Wealth Management said, "Unloxcyt is a newly launched product; we do not expect a meaningful contribution in the March quarter. "Systematix Shares and Stocks (India) Ltd. added that, however, performance in the US generics segment is expected to remain subdued in the March quarter due to pricing pressure, compliance-related challenges, and limited contribution from generic Revlimid

In contrast, the company's specialty portfolio is expected to remain a key growth driver, with continued momentum in products such as Ilumya, Cequa, and Winlevi, along with early traction from the recent launch of Leqselvi.

In March, Sun Pharmaceutical Industries announced the launch of its generic Semaglutide injection under the brand names Noveltreat and Sematrinity in India across strengths. Noveltreat is used for chronic weight management in adults and Sematrinity is used to treat insufficiently controlled type 2 diabetes mellitus. While the drug was launched in March, the demand has been slow and may not materially benefit earnings in the March quarter. Its effect on earnings is likely to be visible in the June quarter.

Key things to watch out for in the earnings call include a ramp-up in specialty products, particularly Unloxcyt and Leqselvi, recovery in the US generics business, and the trajectory of margins amid elevated research and development spending, according to brokerages.

The drugmaker company's earnings before interest, tax, depreciation, and amortisation are pegged at INR 39.32 billion, up nearly 6% on year, according to the average of estimates from 12 brokerages. The highest EBITDA estimate is INR 44.89 billion from Nuvama Wealth Management, while the lowest is INR 34.70 billion from Elara Securities (India). EBITDA margins are seen at 26–30%, indicating a contraction of around 400–500 basis points sequentially, but largely stable on year, as per six brokerages. The sequential decline in margin is due to higher research and development, and marketing spends along with a high base.

For the financial year 2025-26 (Apr-Mar), the company is expected to report a consolidated net profit of INR 113.32 billion–INR 118.08 billion. The highest estimate for net profit is from Motilal Oswal Financial Services Ltd., while the lowest estimate is from Prabhudas Lilladher Pvt. Ltd. The company's revenue for FY26 is expected to be INR 576.68 billion–INR 582.99 billion. The highest estimate for revenue is from Prabhudas Lilladher, while the lowest estimate is from Motilal Oswal Financial Services.

At IST 1311, shares of the company traded at INR 1,896.10 on the National Stock Exchange, up 0.9%. The shares are nearly 18% up since the company reported its December quarter results.

Of the 17 brokerage reports on the company available with Informist, 15 have a 'buy' recommendation on the stock with an average target price of INR 1,996. This is over 5% higher than the current market price. One brokerage has a 'hold' rating on the stock with a target price of INR 1,875. One brokerage has a "sell" rating on the stock with a target price of INR 1,745.

The following are the March quarter earnings estimates for Sun Pharmaceutical Industries from 12 brokerages in descending order of the estimate of net profit in INR billion:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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