Sun Pharma's Profit Jumps 26.5% YoY as Margins Expand
Sun Pharmaceutical's Q1 profit growth significantly outpaced revenue, driven by a 240 basis point year-on-year improvement in net profit margin.
Sun Pharmaceutical reported strong Q1 FY27 results, with profit surging 26.5% year-on-year. The growth was supported by a 10.5% rise in revenue and a notable expansion in profitability.
Sun Pharmaceutical Industries has started FY27 on a robust note, delivering a quarter where profit growth significantly outpaced sales. The company's net profit surged 26.5% year-on-year to ₹2,901 crore, building on a solid 10.5% increase in revenue to ₹15,300 crore. This performance highlights a clear improvement in profitability, with the net profit margin expanding by 240 basis points compared to the same quarter last year.
The sequential picture is also positive. Revenue and profit grew by 4.7% and 7.1% respectively from the March 2026 quarter, indicating steady operational momentum. The company's trailing twelve-month (TTM) performance remains healthy, with a net profit margin of 20.2% on a TTM profit base of over ₹12,100 crore.
A look at the last five quarters shows the earnings trajectory:
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Jun 2026 | Mar 2026 | Jun 2025 |
| 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 (%) | 19.0YoY +14% | 18.5 | 16.6 |
While the latest margin of 19.0% is below the peaks seen in Q2 and Q3 of FY26, it represents a substantial year-on-year recovery from the 16.6% recorded a year ago. This margin expansion is the key driver behind the outsized profit growth.
Key Points
- The company maintains a strong balance sheet with minimal leverage, reflected in a debt-to-equity ratio of just 0.05.
- Returns remain solid, with a Return on Capital Employed (ROCE) of 19.11%.
- The stock has delivered strong returns, gaining 18.9% over the past year and 70.3% over three years.
Sun Pharma's valuation, trading at a P/E of 36.7, is now roughly in line with the broader pharmaceutical industry. The focus will be on sustaining this improved margin profile as the fiscal year progresses.
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· SUNPHARMA
(BSE)
ISIN: INE044A01036
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