Sun Pharmaceutical Industries is a global pharma company spanning branded generics, complex generics, innovative medicines and OTC products, and its Q2 FY 2026-2027 print lands amid a strong India market and persistent US generics pricing pressure. The two biggest things to watch are whether the US formulations decline of 9.7% YoY in Q1 stabilises on new launches, and how the Organon acquisition (EV USD 11.75 Bn) financing and Q4 FY27 close timeline progress.
| Results date | October 30, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 15,299.88 Cr |
| Previous quarter PAT | Rs. 2,894.79 Cr (+27.04% YoY) |
| Previous quarter EBITDA margin | 28.9% |
| Market cap | Rs. 419,403.75 Cr |
| CMP | Rs. 1748.0 |
The board will meet on October 30, 2026, to consider and approve the audited financial results for the quarter ended September 30, 2026 (Q2 FY27). The trading window remains shut from October 1 to November 1, 2026.
The quarter tests whether Sun's India engine can keep offsetting a softening US generics base, with FY27 guidance of high single-digit consolidated top-line growth and R&D at 6-7% of sales on the line. India grew 16% in Q1 FY27 with market share up to 8.5%, and monthly IPM data through the quarter showed Sun outgrowing the market every month — +17.8% in July, +13.9% in August and +21.6% in September with an 8.6% share. The US remains the swing factor: Q1 sales fell 9.7% YoY to US$427 Mn on Lenalidomide erosion, with market-wide generic deflation of 3.1% YoY per BLS data still weighing on the segment, though five new launches late in Q1 are the stabiliser to track. On margins, Q1 EBITDA margin was 28.9% and management does not guide on margins, with LEQSELVI/UNLOXCYT launch spend factored into the annual plan against a Q2 FY26 base of 31.3%. Below the line, the effective tax rate is guided at 27.8% until the Organon transaction completes, and further Organon transaction costs are expected after the Rs. 1,617 Mn charge in Q1. The Organon close is on track for Q4 FY27/early 2027, with the board approving Rs. 10,000 Cr of NCDs and Moody's Baa1 (Stable) and S&P preliminary BBB+ (Stable) ratings in place.
FY27 guidance scorecard: Where each guided item stood after Q1 FY27.
US generics inflection
Specialty ramp: LEQSELVI, UNLOXCYT, ILUMYA
India and semaglutide momentum
Organon financing execution
No — management has explicitly stated it does not guide on margins, noting that expenses relating to UNLOXCYT and LEQSELVI have been factored into the annual plan. Launch-related spend for the two US specialty products (~$100 Mn promotional spend last year) is now treated as base operating spend.
The acquisition (EV USD 11.75 Bn at USD 14.00/share) is on track to close in Q4 FY27/early 2027, with regulatory filings complete, approvals received in certain countries and Organon shareholder approval received. Management has deferred amortization and financial-impact specifics until closing.
US formulations fell 9.7% YoY to US$427 Mn in Q1 FY27, with Lenalidomide erosion the largest part of the decline, plus added generics competition and Levulan seasonality. Management has said recovery is tied to new launches and achieving manufacturing compliance at several sites to enable approvals.
Sun signed the White House MFN pricing agreement on 1-Sep-2026 — the first Indian drugmaker — and the company states the deal delays Section 232 tariffs on its innovative pharmaceuticals for over two years. Management expects only a marginal impact on FY27 and says no additional tariffs are currently being paid.
FY27 guidance is high single-digit consolidated top-line growth, and Q1 FY27 gross sales grew 10.1% YoY, tracking ahead of that band. India grew 16% in Q1 with market share up to 8.5%, offsetting the US generics step-down.