Sun Pharmaceutical Industries Limited (SUNPHARMA)
Large CapPharma stocks · Large cap · NSE
Sun Pharmaceutical Industries Limited is a leading global specialty generic company operating in over 100 countries. It has a diversified business across Innovative Medicines, branded generics, generics, and APIs. It is the largest pharma company in India and the 13th largest in the US generics market, with 40 manufacturing facilities globally.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Average · 47/100margin compression · Rev +10% YoY · PAT +27% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹15,300 Cr | +10.5% | +4.7% |
| EBITDA | ₹4,418 Cr | +2.7% | +11.7% |
| Operating margin | 29.0% | -200 bps | +200 bps |
| PAT | ₹2,901 Cr | +26.5% | +7.0% |
| PAT margin | 19.0% | +241 bps | +41 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
FY26 sales grew 11.9% YoY to Rs 582 Bn, with adjusted net profit up 3.5% YoY to Rs 124 Bn. EBITDA margin expanded to 30.3% for FY26. Q4 FY26 adjusted net profit declined 4.8% QoQ due to specific provisions, despite strong gross sales growth.
The company demonstrated robust FY26 sales growth and margin expansion, driven by strong performance in India, Emerging Markets, and Rest of World. While Q4 adjusted net profit saw a slight decline due to specific provisions, the underlying business segments show strong performance and strategic focus on innovative and complex products. The pipeline and market leadership positions remain strong.
FY26 Sales by Segment
Latest issuer-disclosed distribution across 5 reported categories.
Innovative Medicines Business
Innovative Medicines contributed 22% of sales in FY26, up from 7.3% in FY18. Global sales grew 24% CAGR since FY21.
India Formulations Market Leadership
Largest pharma company in India with 8.4% market share. Ranked No. 1 by prescriptions with 11 classes of prescribers.
Emerging Markets Expansion
Presence in over 80 countries with focus markets like Romania, Russia, South Africa, Brazil, Mexico. FY26 sales up 18.8% YoY.
Complex Generics & High Entry Barrier Segments
Focus on complex generics and high entry barrier segments in the US business to enhance share.
Favorable Macroeconomics in Emerging Markets
Favourable macroeconomics are driving increased pharmaceutical consumption in Emerging Markets.
Litigation & Regulatory Provisions
FY26 adjusted for Rs 9.2 Bn provision related to GxMDL (additional) = Rs 6,444 mn, Wage code = Rs 3,755 mn, Impairment cost of SCD 044 = Rs 2,876 mn.
Foreign Exchange Fluctuations
FY24 adjusted for Rs 2,014 mn Nigeria Forex loss, indicating exposure to currency volatility.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Annual (YoY) comparison is crucial for understanding long-term trends and the impact of strategic initiatives across diverse geographies and product segments. Quarterly (QoQ) comparison provides insight into recent momentum, particularly for new product launches and the impact of specific provisions or market dynamics.
India Formulations Growth
PositiveFY26 sales Rs 192,904 mn, up 14.0% YoY. Q4 FY26 sales Rs 48,359 mn, up 14.8% QoQ.
US Formulations Growth
NeutralFY26 sales Rs 168,242 mn, up 3.6% YoY. Q4 FY26 sales Rs 41,997 mn, up 4.5% QoQ.
Emerging Markets Formulations Growth
PositiveFY26 sales Rs 111,865 mn, up 18.8% YoY. Q4 FY26 sales Rs 27,971 mn, up 24.0% QoQ.
Innovative Medicines Sales
PositiveFY26 sales USD 1,420 mn, grown by 24% CAGR since FY21. Represents 22% of total sales in FY26.
Sustainable Long-Term Growth
Management aims to achieve critical mass in key markets, embed sustainability practices, and increase contribution of Innovative and complex products.
Enhance Innovative/Branded Business
Management plans to enhance the share of innovative/branded business and focus on complex generics and high entry barrier segments in the US.
R&D Investment in Innovative Medicines
Management intends to invest to further build the Innovative Medicines pipeline.
Regulatory & Quality Compliance
Unwavering focus on ensuring 24x7 compliance to cGMP and continuously enhancing systems for global regulatory standards.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Innovative Medicines Sales Growth | Global sales grew 24% CAGR since FY21, reaching USD 1,420 mn in FY26. | Continued strong growth in Innovative Medicines sales and increasing contribution to total revenue. |
| India Formulations Market Share | Largest pharma company in India with 8.4% market share (as of MAT Mar 2026). | Maintenance or expansion of market share in the highly competitive Indian market. |
| US Pipeline Approvals | 122 ANDAs & 13 NDAs pending approval with USFDA (as of 31-Mar-2026). | Timely approvals and successful commercialization of pending ANDAs and NDAs in the US. |
| EBITDA Margin Trend | FY26 EBITDA margin 30.3%, Q4 FY26 EBITDA margin 27.1%. | Consistency in EBITDA margin expansion, especially given Q4 dip, and impact of cost optimization efforts. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
54NeutralSMA20 -2.0% / mo · MACD − · sector +2.2pp vs Nifty (3M)
Technical chart
SUNPHARMAdaily · 1Y · AUTO+6.4%Daily technical trend read
Bearish setupTrend is weak — long-term uptrend intact. RSI 45.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~2.0% over last month) — short-term momentum negative.
- RSI(14) at 45 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 7% off 52W high · 23% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 3.9% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +1.9%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 50 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 50 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 16.3%.
- Balance sheet contributes 10/15 to the score.
Main drags
- Valuation is weaker at 5/30; verify the latest quarterly trend.
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
- Growth is weaker at 14/25; verify the latest quarterly trend.
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 95th percentile of the scored universe and 92nd percentile within Pharma. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Pharma: 92nd pctile, median 70 · Large: 88th pctile, median 73
93 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.4%.
- ▸11 years of positive FCF.
- ▸Debt/equity is 0.06.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 36.10
- P/B
- 5.46
- EV/EBITDA
- 22.10
- Market Cap
- 455634.00Cr
Profitability
- ROE
- 16.00%
- ROCE
- 20.50%
- ROA
- 11.18%
- Dividend Y
- 0.84%
Growth (CAGR)
- Revenue 5Y
- 12.00%
- EPS 5Y
- 17.00%
- Revenue 3Y
- 10.00%
- EPS 3Y
- 13.00%
Balance Sheet
- Debt/Equity
- 0.06
- Interest Coverage
- 49.03×
- Altman Z
- 8.45
- Book Value
- 348.00
Cash Flow
- FCF Yield
- 0.44%
- FCF Positive Y
- 11/5
- OCF
- 12419.00 Cr
- EPS TTM
- 50.41
Shareholding
- Promoter Hold
- 54.48%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 70%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.