1QFY27: steady, not spectacular; retain Buy

研报英文原文证据摘录

1QFY27: steady, not spectacular; retain Buy

Global Markets Research

Sun Pharmaceutical Industries SUN.NS SUNP IN 2 August 2026

EQUITY: HEALTH CARE & PHARMACEUTICALS

Rating1QFY27: steady, not spectacular; retain Buy Remains Buy

India/EM franchise sustains double-digit momentum while US generics Target price

Increased from INR 2,400erode; Organon acquisition synergies provide the bridge to re-rating INR 1,920

1QFY27: US generics drags; India/EM sustain double-digit growth Closing31 July 2026price INR 1,991

SUNP delivered a steady quarter, though headline numbers came in slightly below

expectations. 1QFY27 sales/EBITDA/PAT missed Street estimates by 2%/6%/7% (Fig.1). Implied upside +20.5%

India business posted a healthy growth of 16% y-y, underpinned by strong volume traction

and meaningful contribution from new launches. Emerging markets grew 15% y-y, aided by Market Cap (USD mn) 50,069.5

favorable currency tailwinds, though the underlying constant currency growth was likely in ADT (USD mn) 53.8

the low single-digit. US generics remained a drag, weighed down by persistent price erosion

and the absence of material new launches. Specialty sales retained momentum, delivering Relative performance chart

low-teen growth y-y despite a seasonally weak quarter (Levulan). New launches Leqselvi

and Unloxcyt are gaining traction among prescribers and on formularies, as per

management commentary, though revenue contribution remains immaterial, in our

assessment. Gross margin expanded 90bp y-y despite the absence of gRevlimid, supported

by a higher mix of branded businesses and favorable currency movements. EBITDA growth

was muted at 4% y-y as overhead spend accelerated to support new specialty launches.

Adjusted net profit grew 36% y-y, driven by higher other income and forex gains.