Sun Pharma Reports 2.56% Profit Growth in Q2 FY26; Revenue Reaches Rs 14,478 Crore

Sun Pharmaceutical Industries announced its financial results for the second quarter of fiscal year 2026 (Q2 FY26). The company posted a consolidated net profit of Rs 3,117.95 crore, marking a 2.56% increase compared to Rs 3,040.16 crore in the same period last year (Q2 FY25). Revenue from operations for the quarter was Rs 14,478.31 crore. Key financial metrics included Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) which rose by 14.9% to Rs 4,527.1 crore, with an EBITDA margin of 31.3%. The company maintained its focus on innovation, investing Rs 782.7 crore in Research and Development (R&D), which constituted 5.4% of its sales. The Indian market showed strong performance, with formulation sales in India reaching Rs 4,734.8 crore, an 11% growth. These sales represented 32.9% of the total consolidated sales for the quarter.

Impact: This steady profit growth and strong performance in the domestic market are positive indicators for Sun Pharma's investors, suggesting operational efficiency and market strength. The consistent R&D investment points towards future growth potential. The market might react positively to these results, especially the robust Indian sales. The impact rating for this news on the market is 7/10.

Explanation of Terms: Year-on-Year (YoY): A comparison of financial data from a specific period with the data from the same period in the previous year. Consolidated Net Profit: The total profit of a company after deducting all expenses, taxes, and interest from all its subsidiaries and the parent company combined. Revenue from Operations: The total income generated by a company from its primary business activities after deducting returns and allowances. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of a company's operating performance, indicating profitability before accounting for non-operating expenses and non-cash charges. EBITDA Margin: A profitability ratio calculated by dividing EBITDA by revenue, showing how much profit a company makes for every dollar of sales after covering direct operating costs. R&D (Research and Development): Expenditure incurred by a company on activities aimed at discovering new knowledge or using existing knowledge to create new products or processes. Formulation Sales: Sales of finished pharmaceutical products ready for patient use, as opposed to active pharmaceutical ingredients (APIs).