Earnings
Home›Earnings›Previews›Sun Pharma posts Q1FY27 revenue growth, despite weaker…
Sun Pharma posts Q1FY27 revenue growth, despite weaker US generics
India formulations and innovative medicines lifted consolidated revenue 10% year-on-year to ₹15,183 crore, while US formulations revenue fell 9.7% to $427 million.
Sun Pharmaceutical Industries Ltd reported steady performance in the June quarter, with consolidated revenue rising 10% year-on-year to ₹15,183 crore. Despite the strength coming from higher-margin areas, management reiterated its FY27 guidance, signaling confidence even as margins face near-term pressure from investments and the Organon acquisition, according to LiveMint Markets.
The quarter underscored Sun Pharma’s shift toward higher-margin businesses, with India formulations delivering 16% year-on-year growth to ₹5,475 crore and contributing 36% of consolidated revenue. Growth was driven by cardiovascular, central nervous system and gastro-ortho therapies, with around 40% of the increase from higher volumes and 20% from new launches. Sun Pharma also introduced five products in India and said it strengthened its GLP-1 position, becoming the second-largest player in generic injectable semaglutide and the only Indian company offering a semaglutide auto-injector, per the report.
Innovative medicines revenue increased 12.8% year-on-year to $351 million, making up 21.9% of total sales. Sun said momentum came from growth in multiple products across US and international markets, including Ilumya, Odomzo and Cequa, and it helped support emerging market performance, where revenue rose 15.4% year-on-year to ₹2,945 crore, though dollar growth slowed.
The main drag remained US formulations, where revenue declined 9.7% year-on-year to $427 million due to lower generic sales from ongoing erosion in Lenalidomide and increased competition in certain products. Management attributed moderation in emerging market growth, in part, to geopolitical disruptions and challenging macroeconomic conditions, while noting Leqselvi continues to gain traction through prescriptions and the number of prescribing physicians, according to LiveMint Markets.