Sun Pharma Q1 Earnings Show Strong Profit Growth and Margin Expansion
The pharmaceutical giant reported a 26.5% yearly jump in profit, significantly outpacing its 10.5% revenue growth.
Sun Pharmaceutical's Q1 FY27 results highlight robust profitability, with profit surging 26.5% year-on-year. The company's net profit margin expanded by 240 basis points.
Sun Pharmaceutical Industries has kicked off FY27 with a strong quarter, delivering earnings growth that significantly outpaced its top-line increase. The company's profit after tax surged 26.5% year-on-year to ₹2,901 crore, while revenue grew by a healthy 10.5% to ₹15,300 crore. This performance indicates effective operating leverage and improved profitability.
The profit growth was supported by a notable expansion in net profit margin, which rose to 19.0% from 16.6% in the same quarter last year—an increase of 240 basis points. Sequentially, both revenue and profit continued their upward trajectory, rising 4.7% and 7.1% respectively from the March 2026 quarter.
A look at the last five quarters shows a consistent pattern of growth, with profit reaching its second-highest level in the period.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 15,299.88YoY +10% | 14,611.79 | 13,851.40 |
| Profit (₹ Cr) | 2,901.23YoY +27% | 2,709.66 | 2,292.87 |
| Net Profit Margin | 19.0%YoY +14% | 18.5% | 16.6% |
Key Points
- The trailing twelve-month (TTM) net profit margin stands at a robust 20.2%, reflecting sustained profitability.
- The company maintains a fortress balance sheet with minimal debt, evidenced by a debt-to-equity ratio of just 0.05.
- Sun Pharma's stock has delivered strong returns, gaining 17.6% over the past year and 70.2% over three years.
With a price-to-earnings (P/E) ratio of 36.7, roughly in line with the industry average, the market appears to be pricing in the company's steady earnings momentum. The focus now shifts to maintaining this margin strength in the quarters ahead.
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· SUNPHARMA
(BSE)
ISIN: INE044A01036
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