Sun Pharma guides for slower FY27 growth amid regulatory, macro challenges

Sun Pharmaceutical Industries, India’s largest pharmaceutical company by revenue and market capitalization, after recording double-digit revenue growth in FY26, has projected high single-digit growth for the current financial year (FY27), citing regulatory and macroeconomic challenges.

“Based on our understanding of the current regulatory and macro environment, we expect high single-digit consolidated revenue growth for FY27,” chief executive Dilip Shanghvi told analysts on a post-earnings call on Friday after the company reported results for the fourth quarter and full FY26.

The Mumbai-based company’s consolidated revenue increased by 11.9% ₹58,220 crore despite consolidated net profit rising 5% YoY ₹11,479.4 crore in FY26.

The growth was driven by gains in India (its largest market), where sales rose 14%. ₹19,290.4 crore as well as its innovative portfolio in US and non-US markets.

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“U.S. sales of innovative medicines exceeded $1.1 billion for the first time,” Richard Ascroft, chief executive officer (CEO) of the North American division, told analysts during the call. The company’s management said a strong pipeline along with strong momentum in innovative business in other markets is expected to further fuel growth.

In the March quarter, Sun Pharma’s revenue from operations increased by 13.6% year-on-year. ₹14,559.8 crore and net profit increased sharply by 26.2% ₹2,714 crore.

EBITDA for the quarter remained flat ₹3,954.2 crore, an increase of 6.4% compared to the same period in the previous year. The margin fell 160 basis points to 27.1%. EBITDA refers to earnings before interest, taxes, depreciation and amortization.

Meanwhile, the India business registered 14.8% growth in Q4 FY26. ₹4,835.9 crore (accounting for 33.2% of its overall business) is led by CNS (central nervous system), cardiovascular, gastro and ortho segments.

Innovative in the fourth quarter global pharmaceutical sales reached $354 million, an increase of 20.1% annually. US formulations fell marginally to $459 million in the quarter.

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Sun’s board proposes final dividend ₹5 per share for FY26. This is in addition to the interim dividend ₹11 per share paid in FY26, taking the total dividend for FY26 ₹16 per share, same as FY25.

The company’s results were announced during market hours on Friday. Share price closed with a decrease of 2.71 percent ₹1,840 per capita on NSE, underperforming Nifty Pharma, which closed 1.27% lower.

slowing momentum

Despite strong performance in FY26, the company’s guidance points to a slowdown in growth momentum this year, largely attributed to fewer planned launches in FY27, analysts said.

“We are not seeing any major launches this year in particular, so it will be more about accelerating launches in FY26,” said Vishal Manchanda, pharma analyst at Systematix Group. MintIt refers to Sun’s innovative and generic production line.

Sun Pharma launched two specialty drugs in the US in FY26: Alopecia Areata drug Leqselvi in July 2025 and cancer drug Unloxcyt in January 2026. For these, it had announced a one-time marketing expenditure of $100 million in FY26.

This year will see the growth of Sun’s core portfolio through new geography expansion, along with a continued foray into these drugs in the US, Manchanda said, adding that no leverage is seen in US generics for this year. This comes amid ongoing compliance issues at the company’s three key manufacturing facilities – Halol, Mohali and Dadra.

Shanghvi told analysts that the delay in approvals due to compliance issues, as well as ongoing price pressure in the US, has impacted the company’s generic drug business. “As we start to get new approvals, we will start to see improvement,” he said.

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The company has five new startups in the clinical phase, as well as many generic drug applications in its R&D pipeline.

Shanghvi said the company expects to spend 6-7% of its sales on R&D in the current fiscal, which is similar to the 6.1% spent in FY26.

Apart from internal pipeline expansion, Sun Pharma is also investing in acquisitions to strengthen its portfolio of expertise. Last month, the company announced the acquisition of US-based women’s health and biosimilars company Organon & Co for $11.75 billion and expects the deal to close by the fourth quarter of the current fiscal year.

This acquisition is expected to complement Sun’s branded generics business in various markets and also solidify its entry into the innovative women’s drugs and biosimilars market.

Oral weight loss pill to be launched soon

The company is also banking on India’s fast-growing obesity drug market for future growth. Sun Pharma is among the few Indian companies to launch generic products Semaglutide in the Indian market in March 2026 after the drug lost patent exclusivity.

However, the company is yet to be among the top three players in India’s semaglutide market.

Torrent Pharma, which has launched an oral pill as well as an injectable pen, is the leader with a market share of 38% as of April 2025, according to Pharmarack’s data.

Sun Pharma, which launched semaglutide in pen-filled injectable form on March 21, has a 5% market share as of April. The company has completed clinical trials for an oral pill and will launch it after receiving regulatory approval, managing director Kirti Ganorkar said.

“It takes time to get the full (sales) reflection of any new product launched, so in the next 5-6 months you will see the reflection closer to reality… our endeavor is to always remain a leader,” Ganorkar said about the company’s semaglutide sales acquisition.