News ArticleSun Pharmaceutical Posts 11.8% Q2 FY27 Sales Increase; Ilumya Approved for Psoriatic Arthritis in US
EBITDA rises 4.8% to INR47,439 million; India business grows 17.3% as Organon acquisition nears completion
Sun Pharmaceutical Industries Limited reported an 11.8% sales increase to INR1,61,000 million in Q2 FY27, with gross margin rising to 80.8%. The company noted a 4.8% growth in EBITDA to INR47,439 million and an adjusted net profit of INR31,620 million for the quarter. Notable product developments include US approval of Ilumya for psoriatic arthritis and strong Indian market performance with 17.3% sales growth. Integration planning for the Organon acquisition is on track for early 2027 closure.
Sun Pharmaceutical Industries Limited
Earnings Call Transcript
Sun Pharmaceutical Industries Limited announced a robust 11.8% growth in consolidated sales to INR1,61,000 million for the second quarter of fiscal year 2027, underpinned by strong product demand and favorable currency effects.
The company recorded a gross margin increase to 80.8% driven by an improved product mix. EBITDA rose by 4.8% year-on-year to INR47,439 million, with adjusted net profit for the quarter at INR31,620 million and earnings per share of INR8.3.
Sun Pharma’s Global Innovative Medicines segment saw sales grow 6.9% to USD356 million, contributing 21.1% of total sales. Notably, Ilumya was approved in the US for treating adults with active psoriatic arthritis, with a planned soft product launch in November 2026.
The India formulations business experienced a 17.3% sales increase to INR55,523 million, representing 34.5% of consolidated sales. Sun Pharma holds the top market position in India with an 8.6% market share and sustained prescription volume leadership.
The planned acquisition of Organon is progressing as anticipated, with integration planning underway and expected deal closure in early 2027. Organon remains listed separately, and its financials were not discussed in detail during the quarter.
Highlights
- Q2 FY27 consolidated sales reached INR1,61,000 million, up 11.8% year-on-year.
- Gross margin improved to 80.8% fueled by product mix and currency tailwinds.
- EBITDA grew 4.8% to INR47,439 million with a margin of 29.3%.
- Adjusted net profit for Q2 FY27 was INR31,620 million, EPS at INR8.3.
- Ilumya approved in US for active psoriatic arthritis; soft launch planned in November.
- India business sales grew by 17.3% to INR55,523 million, with 8.6% market share in India’s pharma market as of September 2026 report.
Key Data Snapshot
Financial performance
- Q2 FY27 sales increased to INR1,61,000 million, an 11.8% rise compared to the same quarter last year.
- Gross margin improved to 80.8% due to a better product mix and favorable currency exchange rates.
- EBITDA rose to INR47,439 million, increasing by 4.8% year-on-year, although EBITDA margin declined due to absence of lenalidomide sales benefit seen in prior year.
- Adjusted net profit stood at INR31,620 million with EPS at INR8.3 per share for Q2 FY27.
- Effective tax rate increased to 28.3% from 24.7% in Q2 FY26.
- Half year sales reached INR3,12,836 million, growing 11% over prior year period.
Operational performance
- Global Innovative Medicines sales grew 6.9% to USD356 million and comprised 21.1% of total sales in the quarter.
- Ilumya received US approval for treating active psoriatic arthritis and will have a soft launch in November.
- India formulations sales grew 17.3% to INR55,523 million, holding a 34.5% share of consolidated sales.
- Sun Pharma leads the Indian pharmaceutical market with an 8.6% share, up from 8.3% previously, and holds the top rank by prescription volumes across multiple doctor categories.
- 15 new products were launched in India during Q2 FY27.
Transaction details
- The acquisition of Organon is progressing as planned with integration activities underway.
- Remaining customary closing conditions are being met to enable the acquisition's closure in early 2027.
- Organon remains a separate listed entity and its financial results were not consolidated or discussed in detail in this call.
Background and context
- Sun Pharma's successful debut non-convertible debenture (NCD) subscription highlights strong credit profile and investor confidence.
- Forex gains registered at INR785 million for Q2 FY27 were lower than the corresponding quarter last year.
- EBITDA growth adjusted for lenalidomide has outpaced revenue growth, indicating core operational improvement.
Highlights
- Q2 FY27 consolidated sales reached INR1,61,000 million, up 11.8% year-on-year.
- Gross margin improved to 80.8% fueled by product mix and currency tailwinds.
- EBITDA grew 4.8% to INR47,439 million with a margin of 29.3%.
- Adjusted net profit for Q2 FY27 was INR31,620 million, EPS at INR8.3.
- Ilumya approved in US for active psoriatic arthritis; soft launch planned in November.
- India business sales grew by 17.3% to INR55,523 million, with 8.6% market share in India’s pharma market as of September 2026 report.
Disclosures
- Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
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