Sun Pharmaceutical Industries (SUNP IN) – Q3FY26 Result Update – Strong quarter; growth across key segments – BUY
Published on 01 Feb 2026
Sun Pharma (SUNP) Q3FY26 EBIDTA growth of 13% YoY adjusted for milestone income was healthy and above our estimates. Over last few years SUNP dependency on US generics has reduced and company’s growth is more functional on specialty, RoW and domestic pharma that has strong growth visibility. Though FY26 expenses (an additional $100mn spend) is likely to remain elevated given company are in investment phase to ramp up specialty pipeline; successful scale up of Leqselvi and Unloxcyt along with progress of other pipelines will be key. Our FY27/FY28E EPS broadly remains unchanged. We maintain ‘BUY’ rating with TP of Rs.1,900 based on 30x Dec 2027E EPS. SUNP remains our top pick in large cap space.
