After posting double-digit revenue growth in FY26, Sun Pharmaceutical Industries—India’s biggest pharmaceutical company by revenue and market capitalization—has projected high single-digit growth for the current fiscal year (FY27), citing regulatory and macroeconomic challenges.
“We expect high single-digit consolidated top-line growth for FY27, based on our current understanding of the regulatory and macro environment,” executive chairman Dilip Shanghvi told analysts in a post-earnings call on Friday, after the company announced its results for the fourth quarter and full year FY26.
The Mumbai-headquartered company’s consolidated revenue grew 11.9% to ₹58,220 crore, even as consolidated net profit rose 5% y-o-y to ₹11,479.4 crore in FY26.
Growth was driven by gains in India—its largest market—where sales rose 14% to ₹19,290.4 crore, alongside its innovative portfolio in the US as well as non-US markets.
“Innovative medicines crossed $1.1 billion in sales for the first time in the US,” Richard Ascroft, chief executive officer (CEO) of the North America business, told analysts during the call. Strong momentum in the innovative business in other markets, as well as a strong pipeline, is expected to further boost growth, the company’s management said.
For the March quarter, Sun Pharma’s revenue from operations grew 13.6% y-o-y to ₹14,559.8 crore, and net profit shot up sharply by 26.2% to ₹2,714 crore.
Ebitda for the quarter stood at ₹3,954.2 crore, up 6.4% over the year-ago period. Margin contracted 160 basis points to 27.1%. Ebitda refers to earnings before interest, tax, depreciation and amortization.
Meanwhile, its India business grew 14.8% in Q4FY26 to ₹4,835.9 crore—accounting for 33.2% of its overall business—led by CNS (central nervous system), cardiovascular, gastro and ortho segments.
In the fourth quarter, innovative sales globally stood at $354 million, up 20.1% y-o-y. US formulations declined marginally to $459 million in the quarter.
Sun’s board has proposed a final dividend of ₹5 per share for FY26. This is in addition to the interim dividend of ₹11 per share paid in FY26, taking the total dividend for FY26 to ₹16 per share, same as FY25.
The company’s results were announced during market hours on Friday. Its share price closed 2.71% lower at ₹1,840 apiece on the NSE, underperforming the Nifty Pharma which closed 1.27% lower.
Slowing momentum
Despite the strong FY26 performance, analysts said the company’s guidance points to a moderation in growth momentum this year, attributing it largely to fewer planned launches in FY27.
“In this year specifically, we are not seeing any large launches, so it will be more about ramping up the launches done in FY26,” Vishal Manchanda, pharma analyst at Systematix Group, told Mint, referring to Sun’s innovative and generics pipeline.
In FY26, Sun Pharma launched two specialty drugs in the US—alopecia areata drug in July 2025 and cancer drug Unloxcyt in January 2026. It had announced a $100 million one-time marketing spend for these in FY26.
This year will see a continued push for these drugs in the US, as well as scaling up of Sun’s base portfolio through new geography expansion, said Manchanda, adding that there is no lever seen in its US generics for the year. This comes amid the company’s ongoing compliance issues at three key manufacturing sites—Halol, Mohali and Dadra.
Shanghvi told analysts that the delay in approvals due to the compliance issues as well as continued pricing pressure in the US had affected the company’s generics business. “As we start getting new approvals, we will start seeing improvement,” he said.
The company has five novel entities in the clinical stage, as well as several generics filings in its R&D pipeline.
Shanghvi said that 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.
Alongside internal pipeline expansion, Sun Pharma is also betting on acquisitions to strengthen its specialty portfolio. Last month, the company announced an $11.75-billion acquisition of US-based women’s healthcare and biosimilars company Organon & Co, and expects the deal to be completed by the fourth quarter of the current fiscal.
The acquisition is expected to complement Sun’s branded generics business in several markets, as well as cement its entry into women’s innovative medicines and biosimilars.
Launch of oral weight loss pill soon
The company is also betting on India’s fast-growing obesity-drug market for future growth. Sun Pharma is among several Indian companies to have launched generic in the Indian market in March 2026 after the drug lost patent exclusivity.
However, the company is yet to emerge among the top three players in India’s semaglutide market.
Torrent Pharma, which has rolled out an oral pill in addition to an injectable pen, leads with a 38% market share as of April 2025, according to data from Pharmarack.
Having launched semaglutide in pen-filled injectable form on 21 March, Sun Pharma has a 5% market share as of April. The company has completed clinical studies for an oral pill and will launch once it gets regulatory approval, managing director Kirti Ganorkar said.
“With any new product being launched, it takes time to get the complete (sales) reflection, so in the next 5-6 months, you will see the reflection closer to reality…our endeavour is always to remain a leader,” said Ganorkar on the company’s semaglutide sales uptake.