Credit Rating- New

Sun Pharmaceutical Industries Limited SUN HOUSE, Plot No. 201 B/1, Western Express Highway, Goregaon (E), Mumbai 400063, India Tel.: (91-22) 4324 4324 Fax.: (91-22) 4324 4343 Website: www.sunpharma.com Email: secretarial@sunpharma.com CIN: L24230GJ1993PLC019050 08 September 2026 National Stock Exchange of India Limited BSE Limited Scrip Symbol: SUNPHARMA Scrip Code: 524715 Intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 – International Credit Ratings Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that Sun Pharmaceutical Industries Limited (“Sun Pharma” or the “Company”) has been assigned international issuer credit ratings by Moody’s Ratings (“Moody’s”) and S&P Global Ratings (“S&P Global”), as communicated through their respective press releases dated 08 September 2026. The details of the ratings assigned are set out below: Rating Agency Instrument/Type Rating Moody’s Long-Term Issuer Credit Rating Baa1 (Stable Outlook) S&P Global Long-Term Issuer Credit Rating BBB+ (Stable Outlook) As stated in the respective rating agencies’ press releases, the above ratings take into account Sun Pharma’s proposed acquisition of Organon & Co. Both are investment-grade ratings and are above the current sovereign rating of India which reflects the strength of Sun Pharma’s business and financial profile. The press releases issued by Moody’s and S&P are enclosed herewith as Annexure A and Annexure B, respectively. For Sun Pharmaceutical Industries Limited (Anoop Deshpande) Company Secretary and Compliance Officer ICSI Membership No.: A23983 Registered Office: SPARC, Tandalja, Vadodara – 390 012, Gujarat, INDIA Reaching People. Touching Lives Annexure A Rating Action: Moody's Ratings assigns Baa1 rating to Sun Pharma; outlook stable 08 Sep 2026 Singapore, September 08, 2026 -- Moody's Ratings (Moody's) assigned Baa1 long-term issuer rating to Sun Pharmaceutical Industries Limited (Sun). The rating outlook is stable. "Sun's Baa1 rating reflects its strong global pharmaceutical franchise, leading market position in India, broad geographic and product diversification, growing innovative medicines portfolio, strong profitability, robust free cash flow generation and a long track record of conservative financial management," says Kaustubh Chaubal, a Moody's Ratings Senior Vice President. The rating also incorporates Sun's announced acquisition of Organon & Co. (Ba3, ratings under review for upgrade) for an enterprise value of $11.75 billion, which is expected to close by March 2027, subject to regulatory approvals. "The Organon acquisition will materially strengthen Sun's scale, geographic reach and growth platforms in women's health and biosimilars. These benefits are balanced against higher leverage immediately upon acquisition, integration risk, and the need to improve Organon's performance and governance, whose management execution since its 2021 spin-off from Merck has been uneven," adds Chaubal, who is also Moody's Ratings' lead analyst on Sun. RATINGS RATIONALE Sun is India's largest pharmaceutical company by formulation sales and one of the world's leading producers of generics, branded generics and APIs, with operations across more than 100 countries. Its vertically integrated global manufacturing footprint supports cost efficiency and supply reliability, while a growing innovative medicines portfolio -- 22% of revenue in the fiscal year ending 31 March 2026 (FY2025- 26)reduces generics exposure. A historically robust financial profile, with consistent free cash flow, excellent liquidity and modest leverage, further underpins the rating. Sun's acquisition of Organon builds on this strong foundation. The company expects to generate around $350 million of cost synergies over two to four years, mainly from procurement savings, scale benefits and operating efficiencies. The transaction also creates potential revenue opportunities through cross-selling across the two portfolios, expanding Sun's products into new markets using Organon's commercial infrastructure, and scaling Organon's portfolio across India and other Sun-led markets. These benefits come with meaningful execution risk given Organon's scale, global complexity and exposure to therapeutic segments new to Sun. Organon's performance track record has been inconsistent, including headwinds to US Nexplanon sales, pricing pressure in its established brands portfolio, and governance lapses that led to the 2025 CEO resignation following an audit committee investigation into improper wholesaler sales practices. Organon's pipeline is a further consideration. As a spin-off carrying largely off-patent established brands, Organon lacks a discovery-driven R&D engine and has thus far relied on acquisitions and collaborations to sustain growth. Under Sun's ownership, Organon should benefit from a deeper capital base, disciplined financial policies and Sun's established capabilities, supporting the sustained pipeline reinvestment and business development that Organon has struggled to fund on its own. Sun's strong integration track record mitigates these risks, having successfully absorbed more than 20 acquisitions, including transformational transactions such as Ranbaxy and Taro. While Organon is larger and more complex than any of Sun's prior deals, Sun's proven execution capabilities and conservative financial management provide important offsets. Overall, Organon will add meaningful strategic value to Sun, though the benefits will accrue gradually as integration progresses and pipeline reinvestment gains traction. Sun has historically maintained a conservative financial profile, with reported leverage below 1.0x for much of the past two decades, supported by strong profitability, robust free cash flow generation and disciplined capital allocation. The Organon acquisition will temporarily increase Moody's-adjusted gross debt/EBITDA leverage to around 3.0x, and net leverage to 2.3x on a pro-forma basis at March 2027. We expect strong cash flow generation and debt reduction to drive gross leverage toward 2.0x and net leverage to around 1.5x within 18 months of completion. Sun meets our criteria to be rated two notches above the Indian sovereign, supported by a credit quality that is materially stronger than the sovereign, limited exposure to domestic economic cycles, and strong access to international funding markets. The company generates 66% of its revenue outside India, a proportion that will increase to 83% following the Organon acquisition. The $12 billion of committed financing from leading international banks for the Organon acquisition further demonstrates its funding flexibility and access to global capital markets. LIQUIDITY Sun has excellent liquidity, supported by sizeable cash balances and strong free cash flow generation. As of 31 March 2026, the company held cash of approximately $3.6 billion. It has also secured a committed acquisition financing bridge loan of $12 billion from a broad syndicate of international banks for its acquisition of Organon. Sun is working with its banks to arrange longer-term financing, including term loans and capital market funding, to refinance the bridge facility once the acquisition closes. Given Sun's longstanding banking relationships and access to global debt markets, we do not anticipate any refinancing risk. OUTLOOK The stable outlook reflects our expectation that Sun will deliver a smooth integration of Organon, sustain mid-to-high single-digit revenue growth and steadily improve profitability as acquisition synergies gradually flow through. Steady earnings growth and strong free cash flow will in turn drive rapid debt reduction, bringing Moody's-adjusted gross debt/EBITDA from a post-acquisition peak of 3.0x at March 2027 to about 2.0x within 18 months. The stable outlook also assumes successful pipeline executi [Showing first 8,000 characters — download PDF for full document]