Business
Sun Pharma shares rally 4% as Q3 profit surges 16% YoY; co announces interim dividend
Sun Pharma reported a consolidated net profit of Rs 3,369 crore for Q3 FY26, up 16% from Rs 2,903 crore in the same quarter last year. Revenue from operations also grew 13% YoY to Rs 15,520 crore, compared with Rs 13,675 crore in Q3 FY25. The company’s EBITDA rose 23.4% year-on-year to Rs 4,948.4 crore, with margins improving to 31.9% from 29.3% previously, signalling better profitability and operational efficiency.
Sun Pharma dividend update
Sun Pharma announced an interim dividend of Rs 11 per equity share of Re 1 each for FY26. The record date for determining eligible shareholders is February 5, 2026, and the payout will be made on or before February 16.
Sun Pharma segment performance
US Formulations: Sales in the US stood at US$ 477 million, showing a small growth of 0.6%. Growth in innovative medicines offset a decline in generics, with the US contributing 27.5% of total consolidated sales.
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India Formulations: Domestic sales rose 16.2% to Rs 49,986 million, contributing 32.3% to total sales. For the first nine months, India’s sales reached Rs 144,545 million, a 13.7% increase over the previous year.
Valuation Metrics
Sun Pharma’s P/E ratio is 36.49, Price/Sales ratio is 7.92, and Price/Book ratio is 5.26, reflecting investor expectations of strong growth.
Institutional Holdings
Foreign Institutional Investors (FIIs) reduced their stake from 16.55% to 16.12%, while mutual funds trimmed holdings from 12.41% to 12.09% in Q3 FY26. This points to cautious sentiment among large investors despite strong earnings.
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Technical Outlook
The 14-day RSI is 29.6, below the oversold threshold of 30, suggesting a potential rebound. However, the stock trades below 7 out of 8 key moving averages, except the short-term 5-day SMA, indicating some short-term weakness.
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