Sun Pharmaceutical Industries (SUNP IN) – Q4FY26 Result Update – Traction from Domestic & Specialty business continues – BUY
Published on 25 May 2026
Sun Pharma (SUNP) Q4FY26 EBIDTA growth of 6% YoY was lower than our estimates led by higher opex. Key markets like India and specialty continue to report strong growth. 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. Its recent acquisition of Organon in all cash deal provides an entry into biosimilars and diversify its branded generics portfolio. The deal is EPS accretive from Year 1 and will see significant EPS accretion. Company has managed to enjoy higher multiple compared to peers given its exposure to high growth branded generics portfolio; key will be to grow acquired portfolio than its historical run-rate for stock to outperform. Our FY27E/FY28E EPS broadly remains unchanged. We maintain ‘BUY’ rating with TP of INR 2,070 based on 23x FY28E combined entity EPS.
