Shares of Sun Pharmaceuticals traded lower today, May 25 after brokerages provided mixed reviews over the pharmaceutical giant's fourth quarter results for the fiscal year 2025-26. Sun Pharma share price dropped 0.85% intraday to Rs 1,829 apiece. The scrip was trading 0.15% higher by 10:39 a.m. The benchmark NSE Nifty 50 was up 1.13%.
The pharma giant reported 26.2% surge in net profit on an year-on-year basis, according to an exchange filing on Friday, May 22. Sun Pharma posted a bottom-line of Rs 2,714 crore compared to Rs 2,150 crore in the year-ago period. Revenue went up 12.8% to Rs 14,612 crore from Rs 12,959 crore. It recorded exceptional gains worth approximately Rs 1,700 crore in fiscal 2026. This included exceptional items worth Rs 1,307.5 crore and exceptional tax credit of Rs 385.4 crore for the year ended March 31, 2026.
Brokerages on Sun Pharma's Q4 results
Following Q4 profit surge, brokerages highlighted strong specialty portfolio momentum and new launches, while flagging higher operating and R&D costs. BofA maintained 'Underperform' coverage and raised target price to Rs 1,720 from its previous target price of Rs 1,670.
Despite the hike, the current target price marks a 6.7% downside from the closing price of Rs 1,844.6. Kotak Securities retained 'Add' coverage at a target price of Rs 1,960, a 6.2% upside from its closing price. Meanwhile, maintained 'Outperform' rating and hiked the target price to Rs 2,020, a 9.5% upside.
BofA on Sun Pharma
- The brokerage reiterated underperform rating at a target price of Rs1720
- Q4 margins have been impacted by higher operating costs and increased specialty-related investments.
- Specialty portfolio momentum remains strong led by Ilumya growth and upcoming launches.
- Management continues investing aggressively in specialty pipeline and R&D for long-term growth.
- Specialty growth is largely priced in post OGN merger valuations.
Kotak Securities on Sun Pharma
- The brokerage mainatined 'Add' coverage with target price of Rs 1960
- Growth guidance cools even as levers hold firm.
- The earnings misses the mark in Q4FY26; FY27E topline guidance is bit of a dampener too
- Despite the Q4 dip, specialty progress on track
- Expect SUN to report a robust 16% EPS CAGR over FY26-29
Morgan Stanley on Sun Pharma
- EBITDA miss on higher spend
- Delivered strong growth in India and global innovative medicines in Q4
- Ilumya and new launches led growth
- Higher R&D and operating costs pressured margins
- Long-term growth remains supported by specialty expansion and its dominant India franchise
CLSA on Sun Pharma
- CLSA maintained 'Outperform' and hiked the target price to Rs 2020.
- Innovative drugs, India, other regions continue to offset tepid US generic
- Moderate overall guidance amid uncertainty
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