Sun Pharma Q4: Revenue Rises 8% but Profit Misses Estimates; Dividend Announced

Sun Pharmaceutical Industries Ltd, India’s largest drugmaker, reported its March quarter results with consolidated revenue from operations at ₹129.59 billion, up 8% year-on-year but slightly below the IBES estimate of ₹132.53 billion. The company’s consolidated net profit stood at ₹21.5 billion, reflecting a 19% decline compared to the same period last year, as rising costs and muted US business weighed on the bottom line.

Key Highlights:

Revenue Growth: Sun Pharma’s Q4 revenue grew 8% year-on-year to ₹12,959 crore, driven by continued expansion in specialty products and steady growth in branded generics within India. However, revenue missed analyst expectations, coming in about ₹300 crore below estimates.

Profit Decline: Net profit for the quarter dropped 19% year-on-year to ₹2,154 crore, impacted by higher input costs and a sequential slowdown from the previous quarter’s ₹2,913 crore. The profit figure also fell short of analyst forecasts, which had anticipated a stronger bottom line.

Dividend Announcement: The board declared a final dividend of ₹5.50 per equity share, with July 7, 2025, set as the record date for shareholders.

Operational Performance: While domestic formulations and specialty drug sales remained robust, the company faced margin pressures and challenges in the US market, including trade tariff concerns. EBITDA margins were reportedly stable, supported by strong sales of key products like Revlimid and Ilumya.

Market Reaction: Sun Pharma shares have underperformed in 2025, down over 8.5% year-to-date, reflecting investor caution amid global headwinds and regulatory uncertainties.

Despite the profit miss, Sun Pharma’s resilient revenue growth and continued focus on specialty products underscore its leading position in the pharma sector as it navigates a challenging environment.

Sources: Economic Times, Business Standard, Upstox, Goodreturns