SUNPHARMA's Q2 FY27 numbers came in mixed, with revenue of Rs. 16,198.71 Cr (+11.89% YoY) and PAT growth of -36.22% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 30, 2026 |
|---|---|
| Revenue (Q2) | Rs. 16,198.71 Cr (+11.89% YoY) |
| PAT (Q2) | Rs. 1,988.53 Cr (-36.22% YoY) |
| EBITDA margin | 29.29% (-198 bps YoY) |
| EPS (Q2) | Rs. 8.30 (-36.15% YoY) |
Revenue grew 11.89% YoY with India (+17.3%, share 8.6%) and EM leading, while reported PAT fell 36.22% on the Rs.1,268.83 cr Taro settlement and Organon costs; adjusted PAT grew 1.41%. EBITDA margin compressed ~198 bps YoY to 29.29% but improved QoQ, and the US decline moderated to −8.2%. The Organon acquisition remains on track for Q4FY27 close with the balance sheet pre-funded at ~Rs.30,877 cr net cash.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| India ahead of market | "Sun outgrew the market every month… share up to 8.6% — a clear tailwind" | India +17.27%, share 8.6% | Played out |
| US decline moderates, not reverses | "the −9.7% Q1 decline likely moderates rather than reverses" | US$455mn, −8.2% YoY | Played out |
| EM re-acceleration | "whether growth recovers from +4.2%" | +7.6% USD | Played out |
| Operating margin YoY compression vs 31.3% base | "operating margin facing YoY compression" | EBITDA margin 29.29% vs 31.27% | Played out |
| Gross margin supported | "gross margin already at 80.5%… mix the dominant lever" | 80.77% | Played out |
| FX line vs Q1's Rs.1,220mn gain | "swings the forex line" | FX gain Rs.78.46 cr, lower QoQ and YoY | Played out |
| ETR vs guided 27.8% | "Below the line: ETR vs the guided 27.8%" | 28.30% ex-exceptional; 36.65% overall on non-deductible exceptionals — basis-dependent | Partially |
| Further Organon costs | "further charges expected" after Q1's Rs.1,617mn | Rs.346.16 cr booked; more flagged | Played out |
Read our full results preview.
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 topline: high single-digit growth | FY27 guidance, Q1 FY27 earnings call | Q2 +11.8%, H1 +11.0% | On Track |
| R&D 6–7% of sales (FY27) | FY27 guidance, Q1 FY27 earnings call | Q2 4.83%, H1 5.13% of gross sales — annual guide, quarterly variability); H2 needs ~Rs.2,149.26 cr (+33.9% step-up vs H1) for 6% | On Track per management |
| ETR ~27.8% until Organon closes | Q1 FY27 earnings call | 28.30% ex-exceptional base (36.65% overall, exceptionals largely non-deductible) | Met on ex-exceptional basis |
| Organon close Q4 FY27 / early 2027 | Q2 FY27 press release & presentation | Majority-of-region approvals; Rs.7,816 cr NCDs allotted | On Track |
| Organon synergies >US$350mn in 2–4 yrs | Q1 FY27 earnings call | Integration planning in line with plan | Too Early |
| Leverage ~2.0x gross / ~1.5x net within 18 months post-close | Organon financing announcements | Pre-close | Too Early |
| "Growth driven by strong momentum in India, EM and RoW" | Q2 FY27 press release (MD quote) | India +17.3%, EM +7.6% USD, RoW +3.1% USD; US −8.2% | Confirmed |
| "US sales slightly up ex-lenalidomide" | Q2 FY27 earnings presentation | US −8.2% reported; ex-lenalidomide direction not separately quantified — not quantifiable from filing | Too Early |
| Lenalidomide erosion moderating with new launches | Q1 FY27 call (per prior-quarter notes) | US decline narrowed from −9.7% (Q1) to −8.2% | Confirmed directionally |
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|---|
| India market share % | 8.3 | 8.4 | 8.4 | 8.5 | 8.6 |
| US sales (US$ mn) | 496 | 477 | ~490 (−1.1%) | 427 | 455 |
| Global Innovative Medicines (US$ mn) | 313 | 423 | 354 | 351 | 356 |
| R&D % of sales | 5.4 | 5.8 | 6.7 | 5.4 | 4.83 |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.