Q2FY27 Earnings Call Transcript

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 04 November 2026 National Stock Exchange of India Limited BSE Limited Scrip Symbol: SUNPHARMA Scrip Code: 524715 Q2 FY27 Earnings Call Transcript Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, enclosed herewith a copy of the transcript of the Company’s Q2FY27 earnings conference call, which we shall be uploading on our website after sending this letter to you. This is for your information and record. 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 Sun Pharma Q2 FY27 Earnings Call Transcript 06:30 pm October 30, 2026 Corporate Participants Dilip Shanghvi Chairman, Sun Pharmaceutical Industries Ltd. Kirti Ganorkar Managing Director, Sun Pharmaceutical Industries Ltd. Jayashree Satagopan Chief Financial Officer, Sun Pharmaceutical Industries Ltd. Richard Ascroft CEO (North America), Sun Pharmaceutical Industries Ltd. Corporate Office : Sun House, 201 B/1, Western Express Highway, Goregaon (E), Mumbai - 400063 For further updates and specific queries, please visit www.sunpharma.com or feel free to contact Abhishek Sharma, +91 22 43242929, abhi.sharma@sunpharma.com, Anand Kadkol, +91 22 43245373, anand.kadkol@sunpharma.com, Sun Pharma Q2 FY27 Earnings Call Transcript 06:30 pm October 30, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Sun Pharma's Q2 FY27 Financial Results Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Dr. Abhishek Sharma, Vice President and Head of Investor Relations and Strategic Projects. Thank you, and over to you, sir. Abhishek Sharma: Thank you. Good evening, and a warm welcome to our second quarter FY27 earnings call. I'm Abhishek from the Sun Pharma Investor Relations team. We hope you have received the Q2 financials, the press release and the earnings presentation that was sent out earlier in the day. These are also available on our website. We have with us Mr. Dilip Shanghvi, Chairman; Mr. Kirti Ganorkar, Managing Director; Ms. Jayashree Satagopan, CFO; and Mr. Richard Ascroft, CEO, North America. Today, the team will provide an update on the financial performance and business highlights for the quarter, pipeline updates and respond to any questions that you may have. We will refer to the consolidated financials during management comments. The call recording and call transcript will also be put on our website shortly. The Organon acquisition is subject to satisfaction of the remaining customary closing conditions and is on track to close by early 2027. Organon has already announced their corresponding quarter results. Since Organon remains a separate public listed company, we will not be taking any questions today regarding Organon's business performance. The discussion today might include certain forward-looking statements, and these must be viewed in conjunction with the risks that our business faces. You are requested to ask two questions in the initial round. I also request all of you to kindly send in your questions that may remain unanswered today. I will now hand over the call to our CFO, Ms. Jayashree Satagopan. Jayashree Satagopan: Welcome, and thank you all for joining us for the earnings call after the announcement of the financial results for the second quarter FY27. The financials are already with you. Let me take you through the key consolidated financials. During the second quarter of FY27, sales were at INR1,61,000 million, registering a growth of 11.8% vis-a-vis Q2 FY26. Gross margin was at 80.8% for the quarter, higher than the same period last year, largely on account of a better product mix and favorable currency tailwinds. Corporate Office : Sun House, 201 B/1, Western Express Highway, Goregaon (E), Mumbai - 400063 For further updates and specific queries, please visit www.sunpharma.com or feel free to contact Abhishek Sharma, +91 22 43242929, abhi.sharma@sunpharma.com, Anand Kadkol, +91 22 43245373, anand.kadkol@sunpharma.com, Sun Pharma Q2 FY27 Earnings Call Transcript 06:30 pm October 30, 2026 EBITDA for the quarter was INR47,439 million, an increase of 4.8% over Q2 last year. EBITDA margins came in at 29.3%. EBITDA margins are lower year-on-year. Please note that Q2 FY26 had some benefit from lenalidomide sales. Adjusted for lenalidomide, EBITDA growth has outpaced revenue growth. Forex gain for the quarter was INR785 million, which is lower than Q2 of last year. Reported net profit after tax for Q2 FY27 was INR19,885 million, while adjusted net profit for the quarter was INR31,620 million. EPS for the quarter was INR8.3 per share. Exceptional items for the second quarter includes provision towards a litigation settlement and on account of Organon-related acquisition costs. Effective tax rate for the quarter was 28.3% versus 24.7% in Q2 FY26. Balance sheet continues to be strong with a net cash of USD3.3 billion at the consolidated level. Now let me take you through the half yearly performance. For the first half, sales were at INR3,12,836 million, registering a growth of 11% over the first half last year. Gross margin was at 80.6% for the first half. EBITDA for the first half was INR91,616 million, registering a growth of 3.8% over the first half of last year. EBITDA margin percentage was at 29.1%. Adjusted net profit for H1 was INR62,515 million. The successful subscription of Sun Pharma's debut NCD issue underscores the strength of its credit profile and the broad investor confidence in the company's financial position. I will now hand it over to Kirti, who will share the performance of our Global Innovative Medicines business and India business. Kirti Ganorkar: Thank you, Jayashree. I shall first provide you an update on Global Innovative Medicine. In Q2 FY27, our Innovative Medicines sales were up 6.9% to reach USD356 million. The business accounted for 21.1% of Sun sales for the quarter. The performance in Innovative Medicine continues to be driven by growth across US and ex-US market across products, notably Ilumya, ex-US, Cequa, Odomzo. We are pleased to note that Ilumya is now approved in the US for the treatment of adults with active psoriatic arthritis. Introducing a health care provider-administered IL-23 inhibitor broadens our treatment portfolio and creates new opportunities to strengthen patient support and health care team engagement. We are planning for a soft launch in November with a full launch in the following months. Ilumya continues to do well across international markets. As a highlight, recently, Japanese Society for Psoriasis Research announced that Ilumya to be number 2 across all biologics in the new patient across 73 main hospitals in Japan, making a significant improvement over last year. During the quarter, partnership with LIB Therapeutics strengthened our innovative medicine portfolio and expanded our presence in the rapidly growing PCSK9 market Corporate Office : Sun House, 201 B/1, Western Express Highway, Goregaon (E), Mumbai - 400063 For further updates and specific queries, please visit www.sunpharma.com or feel free to contact Abhishek Sharma, +91 22 43242929, abhi.sharma@sunpharma.com, Anand Kadkol, +91 22 43245373, anand.kadkol@sunpharma.com, Sun Pharma Q2 FY27 E [Showing first 8,000 characters — download PDF for full document]