Sun Pharmaceutical Industries shares fell 5.7% to an intra-day low of Rs 1,608 on the National Stock Exchange. The stock was the top loser in the Nifty 50. The fall in the stock price of the pharma major came after the company posted weak quarterly results for Q1 FY26.
Motilal Oswal on Sun Pharmaceutical
Motilal Oswal has retained its ‘Buy’ call on the stock, with a target price of Rs 1,960, implying an upside of Rs 15%.
The brokerage has reduced its earnings estimates by 5% for FY26 and 4% for FY27, factoring in higher operating expenditure for the branded business and a higher tax rate.
“We await clarity on the US tariff implications on the company’s innovative medicines portfolio,” said Motilal Oswal. That said, Sun Pharmaceutical is strengthening its innovative medicines franchise through portfolio expansion and marketing activities. The company is also reinforcing its branded portfolio while maintaining cost competitiveness in the generics business.
The brokerage expects an earnings growth of 14% CAGR over FY25-27.
Sun Pharmaceutical Q1 FY26 results
The company’s consolidated net profit fell 20% year-over-year to Rs 2,279 crore in Q1FY26, compared to a net profit of Rs 2,835 crore in the same period last year. Sequentially, the profit rose 6% from Rs 2,150 crore reported in Q4 FY25.
The consolidated revenue of the company rose over 9% to Rs 13,851 crore in the first quarter of the financial year 2025-26 from Rs 12,653 crore in Q1FY25 in the quarter under review.
On the operating front, the pharma entity’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 19.2% from last year to Rs 4,302 crore. EBITDA margin for the quarter expanded by 250 basis points to 31% from 28.5% last year.
Sun Pharmaceutical’s share performance
The share price of Sun Pharmaceutical has fallen 3.77% in the last five trading sessions. The stock has declined by 2% in the past one month and 6% in the last six months. Sun Pharma’s share price has erased 5% in the past one year.
