Q1 2027 Sun Pharmaceutical Industries Ltd Earnings Call Transcript

Jul 31, 2026 / 01:00 PM GMT

Release Date Price: ₹1990.5 (-0.53%)

Transcript

Key Points

Positve

Sun Pharmaceuticals Industries Ltd (BOM:524715) reported a 10.1% year-over-year sales growth in Q1 FY27, reaching Rs. 151,836 million, with gross margins improving to 80.5% due to a better product mix.
The company's Global Innovative Medicines business grew 12.8% to US$351 million, driven by strong performance of Illumia, Odemzo, and Sequa across US and ex-US markets.
India formulations sales grew 16% to Rs. 54,749 million, with the company becoming the number two generic semaglutide injectable player and holding an 8.5% market share in the Indian pharmaceutical market.
The US launch of Loxalvia is gaining momentum, surpassing 1,000 prescribers in June with the strongest month since launch, while Unloxit continues to receive positive feedback from oncologists and dermatologists.
The company maintains a strong balance sheet with net cash of $3.4 billion, and the Organon acquisition is on track to close by early 2027, with regulatory filings completed in various markets.
Sun Pharmaceuticals Industries Ltd (BOM:524715) launched five new products in India and five generic products in the US during the quarter, supporting future growth prospects.

Negative

US business sales declined 9.7% to US$427 million, primarily due to lenalidomide erosion and additional competition in certain generic products.
EBITDA margins came in at 28.9%, lower year-over-year, as Q1 FY26 had benefited from lenalidomide sales, and the effective tax rate increased to 27.8% from 24.3%.
Emerging markets growth slowed to 4.2% in Q1 FY27, impacted by geopolitical issues and difficult macroeconomic conditions in certain countries.
Rest of the world formulation revenues were marginally lower year-over-year at US$218 million, with no clear improvement expected in the near term.
The company incurred exceptional charges of Rs. 1,617 million related to Organon acquisition costs, with additional charges expected in subsequent quarters, and management declined to provide a full estimate.
Employee costs are rising ahead of revenue growth due to annual increments, additional field force for new launches, and forex impacts, putting pressure on profitability.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

SUN.NS - Sun Pharmaceutical Industries Ltd
Q1 2027 Sun Pharmaceutical Industries Ltd Earnings Call
Jul 31, 2026 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day and welcome to Sun Pharma's Q1 FY27 Financial Results Conference Call.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone.

Please note that this conference is being recorded.

I now hand the conference over to Dr. Abhishek Sharma, Vice President and Head of Investor Relations and Strategic Projects.

Thank you and over to you sir.

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