Sun Pharma announces Q3 results and 1,100% dividend; Check the details

Synopsis: Sun Pharma posted solid Q3 results with net profit up 16% YoY to Rs. 3,381 crore, revenue rising 13.5% to Rs. 15,521 crore, healthy margin expansion, strong India and EM growth, and declared an Rs. 11 interim dividend.

This company is engaged in the business of manufacturing, developing and marketing a wide range of branded and generic formulations and Active Pharma Ingredients (APIs) is now in focus after it reported its Q3 results with net profit up by 16% YoY to Rs. 3,381 crore.

With a market capitalisation of Rs. 3,86,283 cr, the shares of Sun Pharmaceutical Industries Ltd are currently trading at Rs. 1,610 per share, increasing 4% in today’s market session, making a high of Rs. 1,655.80, up from its previous close of Rs. 1,595 per share.

Q3 Results 

Year-on-year (YoY) performance

Sun Pharma delivered a solid YoY performance in Q3FY26. Sales rose to Rs. 15,521 crore, marking a growth of 13.5% compared with Rs. 13,675 crore in Q2FY26. EBITDA increased sharply by  23% YoY to Rs. 4,948 crore from Rs. 4,009 crore, reflecting operating leverage and margin expansion. Net profit grew by 16% YoY to Rs. 3,381 crore from Rs. 2,913 crore, while EPS improved by 16% to Rs. 14.04, up from Rs. 12.10 a year ago. R&D investment was Rs. 892 crore at 5.8% of sales.

Quarter-on-quarter (QoQ) performance

On a sequential basis, Sun Pharma reported steady improvement. Sales increased by 7% QoQ from Rs. 14,478 crore in Q2FY26 to Rs. 15,521 crore. EBITDA rose 9% to Rs. 4,948 crore from Rs. 4,527 crore, indicating better cost control and operating efficiency. Net profit advanced by 8% to Rs. 3,381 crore from Rs. 3,125 crore, while EPS grew by 8% from Rs. 13.00 to Rs. 14.04.

Dividend 

The Board has approved an interim dividend of Rs. 11 per equity share (face value Rs. 1 each) which is 1,100% payout for the financial year 2025–26. As earlier communicated on 20 January 2026, the record date to determine shareholders’ eligibility for the interim dividend is 5 February 2026. The interim dividend will be paid on or before 16 February 2026.

Business Highlights 

India formulation sales stood at Rs. 4,998.6 crore, recording a growth of 16.2%. These sales contributed 32.3% to the company’s total consolidated revenue. For the nine-month period, India formulation sales were Rs. 14,454.5 crore, reflecting a 13.7% increase compared to the same period last year.

US Formulations

US formulation sales were US$ 477 million, registering a marginal growth of 0.6%. Growth in Innovative Medicines continued to offset the decline in the generics business. The US market contributed approximately 27.5% to total consolidated sales. For the first nine months, sales amounted to US$ 1,445 million.

Emerging Markets (EM) Formulations

Formulation sales in Emerging Markets stood at US$ 337 million, reflecting a strong growth of 21.6%, and accounted for 19.4% of consolidated sales. For the first nine months, sales reached US$ 960 million, growing 12.4% over the same period last year.

Rest of World (RoW) Formulations

Formulation sales in Rest of World markets were US$ 296 million, up 14.5%, and contributed 17.1% to consolidated sales. For the first nine months, sales were US$ 749 million, representing a 15.8% increase year-on-year.

R&D Update

The innovative R&D pipeline includes five novel entities currently in the clinical stage. In the US, the company has 550 approved ANDAs, with 116 ANDAs pending US FDA approval, including 28 tentative approvals. During the quarter, two ANDAs were filed and two approvals were received. Additionally, Sun’s portfolio comprises 57 approved NDAs, with 14 NDAs awaiting US FDA approval.

Innovative Medicines

Global Innovative Medicines sales for Q3 FY26 were US$ 423 million, including milestone income of US$ 55 million. Excluding milestone income, sales grew by 13.2% and accounted for 21.2% of total sales. For the first nine months, sales stood at US$ 1,067 million, up 15.7% compared to the same period last year.

Active Pharmaceutical Ingredients (API)

The API business continues to support both the formulation segment and external customers across geographies. During Q3 FY26, external API sales were Rs. 5,412 million, declining by 4.7%. For the first nine months, API sales were Rs. 15,114 million, down 5.3% year-on-year.

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