Sun Pharmaceutical and 5 other pharma stocks with high R&D spending in Q2FY26

Synopsis: 5 of the best Indian Pharmaceutical companies have invested more than 2300crs just in the latest quarter of Q2FY26, with some of them investing as much as 7.5 percent of their quarterly revenue in Research and Development

The Indian pharmaceutical industry continues to show steady growth, with the domestic market recording 8.6 percent YoY growth in November 2025, despite a high base of 10.7 percent last year, driven by price hikes and improving volumes. India has reinforced its position as the “Pharmacy of the World,” with pharma exports reaching US$30.47 billion in FY2025, up 9.4 percent YoY. 

R&D is critical for pharma companies as it enables the development of complex generics, specialty drugs and new therapies, helps meet stringent global regulatory standards, improves margins, and ensures long-term competitiveness and sustainability in both domestic and export markets, and this article has 5 of the prominent Indian pharma stocks where the company has been investing heavily in R&D to drive sustainable growth.

Sun Pharmaceutical Industries Ltd

Sun Pharmaceutical Industries Ltd, founded in 1983, is India’s largest pharmaceutical company by market share and a one of the global leader in specialty generics and complex formulations.Their FY25 annual revenue exceeded Rs 52000 Cr in FY25 and has been operating in more than 100 countries, the company continues to strengthen its specialty portfolio across dermatology, oncology, and ophthalmology.

In latest quarter of Q2FY26, Sun Pharma had invested Rs 782 Cr in R&D, which is 5.40 percent of revenue, the quarterly revenue grew by 8.93 percent, going from Rs 13291 Cr in Q2FY25 to Rs 14478 Cr in Q2FY26, while the QoQ went up by 4.5 percent from Rs 13851 Cr in Q1FY25. The YoY Net Profits growth is at 3 percent, going from Rs 3037 Cr in Q2FY25 to Rs 3125 Cr in Q2FY26, while the QoQ growth stood at 36 percent from Rs 2293 Cr in Q1FY25.

Cipla Ltd

Founded in 1935, Cipla is a pharmaceutical company which is known for pioneering affordable HIV/AIDS therapies and respiratory treatments. With a presence in 170+ countries, the company operates across key segments including respiratory, HIV/ARV, cardio-metabolic, anti-infective, and dermatology, and is known for its philosophy of- Drugs for All at Affordable Prices.

In the latest quarter of  Q2FY26, Cipla’s R&D expenditure stood at Rs 539 Cr, representing 7.10 percent of its revenue and the company saw a YoY quarterly revenue growth of 7.64 percent, going from Rs 7,051 Cr in Q2FY25 to Rs 7,589 Cr in Q2FY26, while the QoQ went up by 9 percent from Rs 6,957 Cr in Q1FY25. The YoY Net Profits growth is at 4 percent, going from Rs 1,305 Cr in Q2FY25 to Rs 1,353 Cr in Q2FY26, while the QoQ growth stood at 4.7 percent from Rs 1,292 Cr in Q1FY25.

Lupin Ltd

Lupin Limited was founded in 1968 and is one of India’s largest pharmaceutical companies with FY25 revenues of more than Rs 22700 crore. And is one of the giants in generics and specialty therapeutics space. The company operates a diversified manufacturing footprint across India, the US, Europe, Japan, and emerging markets.

In the latest quarter of Q2FY26 Lupin Ltd reported R&D spending of Rs 509 Cr, equivalent to 7.5 percent of its revenue, the quarterly revenue saw a YoY revenue growth of 24.23 percent, going from Rs 5,673 Cr in Q2FY25 to Rs 7,048 Cr in Q2FY26, while the QoQ went up by 12 percent from Rs 6,268 Cr in Q1FY25. The YoY Net Profits growth is at 73 percent, going from Rs 859 Cr in Q2FY25 to Rs 1,485 Cr in Q2FY26, while the QoQ growth stood at 21 percent from Rs 1,221 Cr in Q1FY25.

Aurobindo Pharma Ltd

Incorporated in 1986, Aurobindo Pharma is one of the top 10 global generic pharmaceutical companies, with a presence in over 155 countries and has planned expansion across key European markets which includes- Poland, Italy, Spain, the Czech Republic, Portugal, and France. The company operates as a fully integrated pharma player with a strong focus on antibiotics, anti-retrovirals, cardiovascular, central nervous system, gastroenterological, and anti-allergic therapies.

In the latest quarter Aurobindo Pharma Ltd invested Rs 414 Cr in R&D, which is about 5 percent of its revenue. The quarterly revenue saw a YoY revenue growth of 6.28 percent, going from Rs 7,796 Cr in Q2FY25 to Rs 8,286 Cr in Q2FY26, while the QoQ went up by 5.3 percent from Rs 7,868 Cr in Q1FY25. The YoY Net Profits growth is at 4 percent, going from Rs 817 Cr in Q2FY25 to Rs 848 Cr in Q2FY26, while the QoQ growth stood at 2.9 percent from Rs 824 Cr in Q1FY25.

Gland Pharma Ltd

Gland Pharma Ltd was incorporated in 1978 and is one of the largest and fastest-growing injectable-focused pharmaceutical companies, with a presence across 60 countries including the US, Europe, Canada, Australia, and India. They operate primarily under a B2B model, and have a strong track record in the development, manufacturing, and commercialization of complex injectables.

In the latest quarter of Q2FY26 Gland Pharma Ltd R&D spend was Rs 61.4 Cr, amounting to 5.8 percent of its revenue (standalone), and the quarterly revenue saw a YoY revenue growth of 5.77 percent, going from Rs 1,406 Cr in Q2FY25 to Rs 1,487 Cr in Q2FY26, while the QoQ went down by 1.2 percent from Rs 1,506 Cr in Q1FY25. The YoY Net Profits growth is at 12 percent, going from Rs 164 Cr in Q2FY25 to Rs 184 Cr in Q2FY26, while the QoQ went down 12 percent from Rs 215 Cr in Q1FY25.

Written by Adithya Menon

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