In Week of Mar 28, 2026, Sun Pharmaceutical Industries Ltd (Pharma - Formulators) is outperforming Nifty 500 with +15.9% relative strength. Fundamentals: Strong. On a 4-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Mar 7, 2026
What: 13.2% ex-milestone growth in high-margin innovative medicines business driving margin expansion
Impact: +₹9100 Cr revenue
“Global Innovative Medicines sales were up 13.2%, accounting for 21.2% of sales, both Ex-milestone.”
What: US generic business recovery expected once manufacturing sites achieve compliance for new launches
Impact: +₹5000 Cr revenue
“Generic business will start to recover once we are in manufacturing compliance for a number of our sites in order to launch new products.”
What: New manufacturing capacity to support product launches and address compliance issues
Impact: +₹2500 Cr revenue
“Large greenfield facility capex (~₹3,000 cr) previously approved via subsidiary to expand manufacturing capacity.”
Earnings deceleration risks from management commentary
Trigger: Continued competitive intensity in key generic products
Impact: -200 bps margin impact
Management view: Growth in innovative medicines was offset by lower sales in the generic business due to additional competition in certain products.
Monitor: US generic revenue growth rate
Trigger: Further increase in working capital days
Impact: -50 bps margin impact
Management view: Not specifically addressed in transcript
Monitor: Working capital days trend
Key quotes from recent conference calls
“Global Innovative Medicines sales were up 13.2%, accounting for 21.2% of sales, both Ex-milestone. — Kirti Ganorkar”
“Gross margin during the quarter was at 81%, higher than the same period last year, largely on account of better product mix. — Jayashree Satagopan”
“Our overall US business was marginally up by 0.6% to reach $477 million for the quarter. Growth in innovative medicines was offset by lower sales in the generic business due to additional competition in certain products. — Kirti Ganorkar”
“We see the innovative medicines continuing to grow and the generic business will start to recover once we are in manufacturing compliance for a number of our sites in order to launch new products. — Richard Ashcroft”
Forward-looking targets from management for next_2-4_quarters
Implied PAT Growth
15%
Capex Plan
₹3000 Cr
Key Milestones
• US manufacturing compliance
• greenfield facility commissioning
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +14% | +11% | Stable |
| PAT (Net Profit) | +16% | +48% | Inflection Up |
| OPM | 32.0% | +300 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Mar 7, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Sun Pharmaceutical Industries Ltd's latest quarterly results (Dec 2025) show
Sun Pharmaceutical Industries Ltd's profit is growing with an turning around (inflection up) trend.
Sun Pharmaceutical Industries Ltd's revenue growth trend is stable.
Sun Pharmaceutical Industries Ltd's operating margin is expanding.
Sun Pharmaceutical Industries Ltd's long-term compounding rates
Sun Pharmaceutical Industries Ltd's earnings growth is turning around (inflection up) with positive momentum on a sequential basis.
Sun Pharmaceutical Industries Ltd's trailing twelve month (TTM) performance
Sun Pharmaceutical Industries Ltd appears significantly undervalued based on our fair value analysis.
Sun Pharmaceutical Industries Ltd's current PE ratio is 35.5x.
Sun Pharmaceutical Industries Ltd's current PE is 35.5x.
Sun Pharmaceutical Industries Ltd's price-to-book ratio is 5.5x.
Sun Pharmaceutical Industries Ltd is rated Strong with a fundamental score of 70.9/100. This score is calculated from objective financial metrics
Sun Pharmaceutical Industries Ltd has a debt-to-equity ratio of N/A.
Sun Pharmaceutical Industries Ltd's return ratios over recent years
Sun Pharmaceutical Industries Ltd's operating cash flow is positive (FY2025).
Sun Pharmaceutical Industries Ltd's current dividend yield is 0.89%.
Sun Pharmaceutical Industries Ltd's shareholding pattern (Dec 2025)
Sun Pharmaceutical Industries Ltd's promoter holding has remained stable recently.
Sun Pharmaceutical Industries Ltd has been outperforming Nifty 500 for 4 consecutive weeks, indicating building momentum.
Sun Pharmaceutical Industries Ltd is an established outperformer with 4 weeks of consecutive Nifty 500 outperformance.
Sun Pharmaceutical Industries Ltd has 3 key growth catalysts identified from recent earnings analysis
Sun Pharmaceutical Industries Ltd has 2 key risks worth monitoring
In Q3 FY26, Sun Pharmaceutical Industries Ltd's management highlighted
Sun Pharmaceutical Industries Ltd's management has provided the following forward guidance for next_2-4_quarters
Based on quantitative research signals, here is why Sun Pharmaceutical Industries Ltd may be worth studying
Sun Pharmaceutical Industries Ltd investment thesis summary:
Sun Pharmaceutical Industries Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
