Credit Rating

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 13 October 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 – Update on 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 CRISIL Ratings Limited ("CRISIL") and ICRA Limited ("ICRA") have assigned ratings to the proposed Non-Convertible Debenture ("NCD") programme of Sun Pharmaceutical Industries Limited ("Company") and reaffirmed the ratings assigned to the existing facilities of the Company. The details of the ratings are set out below: Rating Agency Instrument/Type Rating Non-Convertible Debentures Crisil AAA/Stable (Assigned) Commercial Paper Crisil A1+ (Reaffirmed) CRISIL Long Term Rating Crisil AAA/Stable (Reaffirmed) Short Term Rating Crisil A1+ (Reaffirmed) Non-Convertible Debentures [ICRA]AAA (Stable) assigned Commercial Paper [ICRA]A1+ reaffirmed ICRA Long-term short-term, fund-based/ non- [ICRA]AAA (Stable)/ fund-based limits [ICRA]A1+ reaffirmed As stated in the respective rating communications, the ratings factor in, inter alia, the Company's strong business and financial profile and also take into consideration the proposed acquisition of Organon & Co. by the Company. Further, ICRA has reaffirmed its rating of [ICRA]A1+ reaffirmed to the short-term fund-based/non-fund- based facilities aggregating INR 150 crore of Sun Pharma Laboratories Limited ("SPLL"), a wholly-owned subsidiary of the Company. Copies of the rating rationales issued by CRISIL and ICRA in respect of the Company and by ICRA in respect of SPLL are enclosed as Annexure A, Annexure B and Annexure C, 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 10/13/26, 2:36 PM Rating Rationale Rating Rationale October 13, 2026 | Mumbai Sun Pharmaceutical Industries Limited 'Crisil AAA/Stable' assigned to non-convertible debentures Rating Action Regulator Of Total Bank Loan Facilities Rated Rs.176 Crore Instrument Long Term Rating Crisil AAA/Stable (Reaffirmed) RBI Short Term Rating Crisil A1+ (Reaffirmed) RBI Regulator Of Instrument Ratings Instrument Rs.15000 Crore Non Convertible Crisil AAA/Stable (Assigned) SEBI Debentures Rs.4000 Crore Commercial Paper Crisil A1+ (Reaffirmed) RBI Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. 1 crore = 10 million Refer to Annexure for Details of Instruments & Bank Facilities Detailed Rationale Crisil Ratings has assigned its ‘Crisil AAA/Stable’ rating to the proposed non-convertible debentures of Sun Pharmaceutical Industries Limited (Sun Pharma) and has reaffirmed its ‘Crisil AAA/Stable/Crisil A1+’ ratings on the existing bank facilities and commercial paper programme. The ratings continue to reflect the leadership position of Sun Pharma in the domestic formulations segment, its strong presence in the US and other regulated markets with a robust specialty products portfolio and strong financial risk profile. These strengths are partially offset by exposure to regulatory risk and susceptibility to intense competition and US policy uncertainties. Operating performance remained healthy in the first quarter of fiscal 2027, with operating income increasing by around 10% on-year to Rs 15,300 crore, driven by strong growth in the India formulations and global innovative medicines businesses. India formulations sales grew 16% on-year to Rs 5,475 crore, while global innovative medicines sales increased 13% to $351 million and constituted around 22% of consolidated sales; this was partly offset by a 10% decline in US formulations sales amid continued weakness in the generics business. Operating profit increased 2.7% to Rs 4,418 crore, though operating margin moderated to 29% from 31.1% in the corresponding period of the previous fiscal. Nevertheless, operating profitability remained healthy, supported by a favourable product mix and increasing contribution from the innovative medicines’ portfolio. Earlier, Sun Pharma’s consolidated revenue grew 12% on-year in fiscal 2026 driven by healthy growth in the domestic, emerging and rest-of-the-world markets and ramp-up in the sale of innovative medicine products amid subdued growth in the US formulations market, and the operating margin was healthy at 30.5% (29.3% in fiscal 2025) supported by a favourable product mix. Crisil Ratings expects revenue to grow at a high single-digit rate annually over the medium term, supported by the scale-up of the innovative medicines portfolio, including the recently launched Leqselvi and UNLOXYCT, and steady growth across other key markets. Operating margin is expected to remain healthy at 26-27% over this period, notwithstanding sizeable research and development (R&D) spend of 6-8% of revenue and upfront marketing and commercialisation expenses for innovative medicines ahead of commensurate revenue scale-up. While Sun Pharma’s agreement with the US administration provides some mitigation against tariff-related risks for a two-year period, after which the arrangement is subject to review, the evolving policy environment in the US, particularly implementation of Most Favoured Nation (MFN)-linked drug pricing measures and tariffs on pharmaceutical products, and their consequent impact on realisations and operating profitability, will remain monitorable. Earlier, Sun Pharma had announced on April 27, 2026, the proposed acquisition of US-based Organon & Co. (Organon; rated ‘BB/CreditWatch Positive/A-4’ by S&P Global Ratings) for an enterprise value of $11.75 billion. Organon, a global healthcare company spun off from Merck, reported revenue of $6.2 billion and adjusted operating profit of around $2 billion in calendar year 2025, translating into a healthy operating margin of around 31%. During the first half of calendar year 2026, revenue remained broadly stable on-year over $3 billion, while operating margin sustained around 30%. Established brands accounted for around 60% of revenue during the period, followed by innovative medicines in women’s health at 27% and biosimilars at 13%. https://www.crisilratings.com/mnt/winshare/Ratings/RatingList/RatingDocs/SunPharmaceuticalIndustriesLimited_October 13_ 2026_RR_405525.… 1/11 10/13/26, 2:36 PM Rating Rationale The acquisition should significantly strengthen Sun Pharma’s global scale and diversify its business profile across therapies, products and geographies. On consummation, the combined entity is expected to rank among the top 25 global pharmaceutical companies, with pro-forma revenue of around $12.4 billion. The transaction will provide Sun Pharma with an established presence in women’s health and biosimilars, expand its geographical reach and further strengthen its innovative medicines portfolio. On a pro-forma basis, established brands and branded generics are expected to constitute around 51% of consolidated revenue, followed by innovative medicines at 27%, generics at 15%, biosimilars at 6%, and active pharmaceutical ingredients (APIs) and others at 2%. Operating profitability is expected to remain healthy, with earnings before interest, tax, depreciation and amortisation (Ebitda) margin of 28-30%, translating into operating profit of around $4 billion and supporting healthy annual cash generation. Cris [Showing first 8,000 characters — download PDF for full document]