SUNPHARMA
Large CapSun Pharmaceutical Industries Limited
Pharma
Sun Pharmaceutical Industries Limited is a global pharmaceutical company with $6.2B+ revenue in FY25, holding the #1 position in India by revenue. It operates in 100+ countries, with 20% of its revenue from innovative medicines, supported by a strong balance sheet with $3.1B+ cash in FY25.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 47/100margin compression · Rev +13% YoY · PAT +26% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹14,612 Cr | +12.8% | -5.9% |
| EBITDA | ₹3,954 Cr | +6.4% | -20.1% |
| Operating margin | 27.0% | -200 bps | -500 bps |
| PAT | ₹2,710 Cr | +25.8% | -19.9% |
| PAT margin | 18.6% | +193 bps | -323 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Sun Pharma announced the acquisition of Organon & Co. for an enterprise value of $11.75Bn, a transformative move expected to nearly double its revenue and EBITDA, significantly enhancing its global footprint and innovative medicines portfolio.
The Organon acquisition is a significant strategic move, expected to transform Sun into a top 25 global pharma company. It diversifies revenue streams, strengthens innovative medicines, and provides a robust platform for future growth and in-licensing, aligning with its global expansion strategy.
Combined Revenue by Product Category (Pro Forma)
Latest issuer-disclosed distribution across 5 reported categories.
Innovative Medicines Expansion
Organon strengthens Sun's presence in innovation, adding Women's Health as a new pillar, increasing the combined innovative medicines share to 27% of revenue.
Established Brands Rejuvenation
Opportunity to apply Sun's branded generics playbook to Organon's 50+ established brands, which contribute 55% of Organon's revenue, to accelerate growth.
Biosimilars Platform
Organon is the #7 player globally with 8 biosimilars in the market, offering a strong commercial platform for in-licensing and future launches.
Global Commercial Footprint
The combined entity will have a presence in 150+ markets, with 18 markets generating over $100Mn revenue, supported by a 24,000+ commercial front-end team.
Women's Health Market Growth
The Women's Health market is large ($35Bn+) and attractive, growing at 6-10% CAGR, with several unmet needs and a less complex market access environment.
Global Biosimilars Market Expansion
The global biosimilars market is a $20Bn+ market growing at 15%+, with a $70Bn+ potential from upcoming patent expiries by 2035.
China Market Potential
China is a large, growing market ($150Bn+ in 2025) with 5-7%+ expected growth and 2000+ innovative products in development, offering expansion opportunities.
Integration Risks
Risks include difficulty in predicting the timing or outcome of regulatory approvals, failure to realize anticipated benefits, and potential adverse effects on relationships with employees or business partners.
Regulatory Approvals
There is a possibility that a governmental entity may prohibit, delay, or refuse to grant approval for the consummation of the transaction, or only grant approval subject to adverse conditions.
Market Price Volatility
Potential negative effects of the announcement or the consummation of the proposed acquisition on the market price of Sun Pharma's shares or operating results.
Competition and Pricing
Risks include government-mandated or market-driven price decreases for products, and the existence or introduction of competing products.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
This document is an investor presentation focused on a proposed acquisition, not a traditional earnings report. Financial figures are presented for Sun (FY25) and Organon (CY25) and then combined pro forma, rather than showing period-over-period performance. The focus is on the combined entity's profile.
Revenue (FY25)
Sun's revenue was $6.2Bn in FY25. The combined entity is projected to have $12.4Bn in revenue.
EBITDA (FY25)
Sun's EBITDA was $1.8Bn in FY25. Organon's adjusted EBITDA was $1.9Bn in CY25. The combined entity is projected to have $3.7Bn in EBITDA.
Innovative Medicines Revenue Share
Sun's innovative medicines contributed 20% of its FY25 revenue. The combined entity is projected to have 27% of revenue from innovative medicines.
Established Brands/Branded Gx Revenue Share
The combined entity is projected to have 51% of its revenue from Established Brands / Branded Generics.
Transformative Acquisition
Management views the Organon acquisition as a transformative opportunity, unlocking new growth platforms and accelerating Sun's transformation into a global pharma company.
Value Creation Vectors
Management expects to unlock value through enhanced patient access, accelerated growth in Organon's portfolio, becoming a licensing partner of choice, and leveraging efficient operations.
Synergy Potential
Management anticipates potential synergies of over $350Mn in 2-4 years, with significant future upside from growth opportunities.
Stronger Financial Position
The combined cash flows are expected to enable debt repayment and support investment in future strategic priorities.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Integration Progress | Initiating integration planning, assessing combined organizational capabilities, and planning for cross-cultural assimilation. | Smooth integration of Organon's operations and teams, retention of key talent, and effective cultural assimilation post-closing. |
| Synergy Realization | Potential synergies of over $350Mn identified for realization within 2-4 years. | Concrete steps and timelines for achieving identified cost improvements and growth synergies, and reporting on their actualization. |
| Debt Repayment | Acquisition financed with $2-2.5Bn cash and $9.25-9.75Bn committed financing, resulting in a pro forma Net Debt/EBITDA of ~2.3x. | Progress on deleveraging using the strong combined cash flows and adherence to debt reduction targets. |
| Innovative Medicines Growth | Combined entity projected to have 27% revenue from Innovative Medicines, with Women's Health as a new pillar. | Continued growth and new product introductions in the innovative medicines segment, particularly in Women's Health and other specialized areas. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
55NeutralSMA20 +3.7% / mo
Technical chart
SUNPHARMAdaily · 1Y+3.7%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 42.
- SMA20 rising (~4.1% over last month) — short-term momentum positive.
- RSI(14) at 42 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 7% off 52W high · 12% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 11.4%.
- Balance sheet contributes 10/15 to the score.
Main drags
- Valuation is weaker at 4/30; verify the latest quarterly trend.
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
- Quality is weaker at 11/20; verify the latest quarterly trend.
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 96th percentile of the scored universe and 93rd percentile within Pharma. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Pharma: 93rd pctile, median 70 · Large: 87th pctile, median 74
100 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.3%.
- ▸11 years of positive FCF.
- ▸Debt/equity is 0.06.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 34.20
- P/B
- 5.11
- EV/EBITDA
- 20.88
- Market Cap
- 426889.00Cr
Profitability
- ROE
- 16.00%
- ROCE
- 20.50%
- ROA
- 10.58%
- Dividend Y
- 0.90%
Growth (CAGR)
- Revenue 5Y
- 12.00%
- EPS 5Y
- 17.00%
- Revenue 3Y
- 10.00%
- EPS 3Y
- 13.00%
Balance Sheet
- Debt/Equity
- 0.06
- Interest Coverage
- 52.30×
- Altman Z
- 8.42
- Book Value
- 348.00
Cash Flow
- FCF Yield
- 0.25%
- FCF Positive Y
- 11/5
- OCF
- 12419.00 Cr
- EPS TTM
- 47.84
Shareholding
- Promoter Hold
- 54.48%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 63%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.