- Sun Pharma's Q1 profit rose 27% YoY to Rs 2,895 crore but missed estimates
- Revenue grew 10.5% to Rs 15,300 crore, slightly below analyst expectations
- EBITDA increased 2.7% to Rs 4,419 crore, with margins narrowing to 28.9%
Sun Pharmaceutical Industries Ltd. reported a mixed set of June-quarter earnings, with profit rising on a year-on-year basis but falling short of analysts' estimates as weakness in its US formulations business weighed on performance. However, operating margins came in ahead of Street expectations.
The drugmaker posted a consolidated net profit of Rs 2,895 crore, up 27% from Rs 2,279 crore a year ago, but below the Bloomberg consensus estimate of Rs 2,974 crore. Revenue increased 10.5% to Rs 15,300 crore, missing the estimate of Rs 15,527 crore.
EBITDA rose 2.7% year-on-year to Rs 4,419 crore, marginally ahead of the Street estimate of Rs 4,372 crore. However, the EBITDA margin narrowed to 28.9% from 31.1% a year earlier, although it remained above the consensus estimate of 28.2%.
The company said the quarter included a one-time loss of Rs 204 crore, while other income increased to Rs 724 crore from Rs 464 crore a year ago.
India continued to be the key growth driver, with formulation sales rising 16% year-on-year to Rs 5,475 crore. The emerging markets formulations business grew 4.2% to $311 million, while the Rest of the World business stood at $218 million. The API business reported 10.5% growth to Rs 597 crore.
US formulations sales declined 9.7% year-on-year to $427 million, reflecting continued pressure in the company's largest overseas market.
Sun Pharma said Organon shareholders have approved the proposed acquisition, with the transaction remaining on track to close in early 2027.
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