Sun Pharma Q2 profit takes a hit on exceptional items
Sun Pharmaceutical has seen a notable 36% drop in net profit, juxtaposed with an 11.8% rise in consolidated revenue. The uplift in revenue can be attributed largely to strong sales growth in India and emerging markets, particularly in domestic formulations. Conversely, US formulation sales faced a significant downturn. The company also marked progress in its integration planning for the…
Sun Pharmaceutical's second-quarter earnings saw a 36% decline in net profit, reaching ₹1,989 crore, due to exceptional items from a US antitrust case and an Organon acquisition. However, overall revenue rose 11.8% to ₹16,100 crore, as the company saw growth in India and emerging markets. Adjusted net profit stood at ₹3,162 crore, while EBITDA increased 4.8% to ₹4,744 crore and operating margin contracted to 29.3% from 31.3%.
The company's performance was largely driven by strong momentum in India, emerging markets, and the rest of the world. India formulations sales grew 17.3% to ₹5,552 crore, making up 34.5% of consolidated sales. Emerging markets saw formulation sales increase 7.6% to $350 million, while other international markets grew 3.1% to $241 million.
However, US formulation sales fell 8.2% to $455 million, accounting for around 27% of consolidated revenue. The US business remains crucial for Sun Pharma's generics portfolio. The company received US approval for Ilumya to treat psoriatic arthritis and a National Comprehensive Cancer Network recommendation for Unloxcyt in advanced skin cancer.
Sun Pharma also began pre-launch activities for a PCSK9 inhibitor in EU markets. Integration planning for the proposed Organon acquisition was progressing as planned, with regulatory approvals secured in most regions. For the first half of FY27, consolidated revenue grew 11% to ₹31,284 crore, adjusted net profit rose 2.2% to ₹6,252 crore, and EBITDA increased 3.8% to ₹9,162 crore.
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