Sun Pharmaceutical Industries sales rise 11.8% to INR161,000 million

Sun Pharmaceutical Industries Ltd. reported Q2 FY27 consolidated sales of INR161,000 million, up 11.8% year-on-year, while its India formulations business grew 17.3% to INR55,523 million and lifted its domestic market share to 8.6%. The results highlight the growing contribution of the domestic business even as EBITDA growth trailed sales growth.

What did Sun Pharma report for Q2 FY27?

Sun Pharma reported consolidated sales of INR161,000 million for the quarter ended September 2026, compared with the corresponding quarter of FY26. Sales growth was 11.8% year-on-year. The company said its gross margin improved to 80.8%, supported by a better product mix and favourable currency tailwinds.

EBITDA was INR47,439 million, a year-on-year increase of 4.8%, and the EBITDA margin stood at 29.3%. Management noted that the year-on-year margin comparison was affected by the benefit from lenalidomide in Q2 FY26. This means sales growth in the latest quarter was faster than EBITDA growth, despite the improvement in gross margin.

How did Sun Pharma's India formulations business perform?

Sun Pharma's India formulations sales rose 17.3% year-on-year to INR55,523 million in Q2 FY27. The business accounted for 34.5% of consolidated sales during the quarter, making it a substantial contributor to the company’s reported revenue base.

The company said it retained the number-one position in the Indian pharmaceutical market and held an 8.6% market share, based on PharmaTrack data for the 12 months ended September 2026. This was higher than the 8.3% share reported for the corresponding previous period. Sun Pharma also said it performed well across its major represented therapy areas.

Volume growth was a key part of the domestic performance. Sun Pharma reported volume growth of 6.7% for the quarter, compared with 1.8% growth for the Indian Pharmaceutical Market, or IPM. Management also cited the SMSRC March-June 2026 report, under which it remained the number-one company by prescription volumes and ranked first by prescriptions across 12 doctor categories.

What supported Sun Pharma's domestic growth and market share?

Sun Pharma attributed its domestic momentum primarily to volume expansion. The 6.7% volume increase compared with 1.8% for the IPM indicates that its volumes grew faster than the broader market during the quarter. The company also expanded its portfolio with 15 new product launches in India in Q2 FY27.

The scale of the Indian pharmaceutical market provides context for the market-share gain. Sun Pharma said the market was valued at more than INR2,618 billion under PharmaTrack’s MAT September 2026 measure. Within that market, the rise from 8.3% to 8.6% represents a 0.3 percentage-point gain in share.

For comparison, India formulations sales were INR47,348 million in Q2 FY26, when the business grew 11% year-on-year and accounted for 32.9% of consolidated sales. The Q2 FY27 result therefore showed both a higher reported domestic growth rate and a larger contribution of India to consolidated sales than the previous-year period.

What did management say about the Assam ophthalmology products?

Sun Pharma confirmed that 11 ophthalmology products were voluntarily recalled and that manufacturing was temporarily suspended at the Assam plant. Managing Director Kirti Ganorkar declined to comment on media reports regarding action by the Indian drug regulator, while stating that the regulator had been kept informed.

Management said product quality and patient safety remained priorities and that remedial actions were under way. The company did not provide a timeline for the resumption of ophthalmic manufacturing, quantify the financial effect of the temporary suspension, or disclose further details of the remedial process during the call.

The disclosure is relevant because ophthalmic products are subject to quality controls and the company has confirmed both a voluntary recall and a temporary manufacturing pause. Investors will need to rely on subsequent company disclosures for any update on production resumption, the scope of corrective measures, or the effect on product availability.

How do the results affect Sun Pharma investors and operations?

The quarter showed that Sun Pharma's India business grew more quickly than consolidated sales and expanded its market share. Domestic formulations generated 34.5% of consolidated sales, while the 17.3% growth rate exceeded the 11.8% growth in total sales. For investors, this establishes the domestic business as an important source of the reported quarterly growth.

Margin trends were more mixed. Gross margin improved to 80.8% because of product mix and currency tailwinds, but EBITDA margin was 29.3% and EBITDA increased 4.8%, slower than sales. Management specifically linked the year-on-year EBITDA margin comparison to the lenalidomide benefit recorded in Q2 FY26, which affects the base for comparison.

The company also said integration planning for the Organon acquisition was continuing across functions and workstreams in line with plan. Regulatory approvals had been secured in a majority of regions, according to management. No transaction-completion date or financial contribution from the acquisition was disclosed in the provided call details.

Conclusion

Sun Pharma delivered 11.8% growth in Q2 FY27 sales to INR161,000 million, led in part by its domestic formulations business, where sales grew 17.3% to INR55,523 million. The improvement in India market share to 8.6% and volume growth above the IPM support the importance of the domestic franchise, while EBITDA growth of 4.8% remained below revenue growth.

The next areas to watch are progress on remedial actions and manufacturing status for the recalled ophthalmology products, as well as further updates on Organon acquisition integration and regulatory approvals. Management has said integration work is progressing to plan, but did not disclose a completion date or financial impact in the call details.