Sun Pharmaceutical Industries (SUNP IN) – Q2FY27 Result Update – In-line quarter, R&D spend to pick up in H2FY27 – BUY
Published on 01 Nov 2026
Sun Pharma (SUNP) Q2FY27 EBIDTA growth of 14% YoY was in line with our estimates. Key markets such as India and EM markets continue to drive growth while global specialty sales growth was muted with 7% YoY growth. ILUMYA’s US approval for active psoriatic arthritis and the growth potential of LEQSELVI and UNLOXCYT provide further growth opportunities. Over the years, SUNP has reduced its dependence on US generics, with specialty, RoW and domestic formulations driving growth. The proposed Organon acquisition will expand its branded generics portfolio and provide an entry into biosimilars, with integration progressing and closure on track for Q4FY27E. The deal is EPS accretive from Year 1 and will see significant EPS accretion. While the acquisition offers significant growth and earnings potential, successful integration and growth acceleration of the acquired portfolio will be key to driving further stock re-rating. Our FY28E/FY29E EPS broadly remains unchanged. We maintain ‘BUY’ rating with TP of INR 2,150 based on 25x FY28E combined entity EPS.
