Sun Pharmaceutical Industries reported a 36.2% year-over-year drop in second-quarter net profit after exceptional costs, even as revenue and adjusted profit rose, leaving growth uneven across its major markets.
Sun Pharma's unaudited results put consolidated net profit at ₹19.8853 billion for the three months ended Sept. 30, 2026, down from ₹31.1795 billion a year earlier. Revenue from operations rose 11.9% to ₹161.9871 billion. EconoTimes previously covered the headline results in its earlier report on the September quarter.
The filing lists ₹12.6883 billion in exceptional items. Of that total, ₹9.2267 billion was related to a settlement agreement, including legal costs, signed by Sun Pharma subsidiaries and a plaintiff on Sept. 10 in U.S. generic-drug pricing litigation. The company identifies the case as In re Generic Pharmaceuticals Pricing Antitrust Litigation in the Eastern District of Pennsylvania. Another ₹3.4616 billion was tied to expenses for the proposed Organon acquisition, including diligence, legal, filing, commitment and syndication fees. Sun Pharma also recorded a ₹953.4 million tax benefit related to the settlement and said it expected further acquisition costs.
The company's Q2 release and earnings presentation reported adjusted net profit of ₹31.620 billion, up 1.4%. Earnings before interest, taxes, depreciation and amortization rose 4.8% to ₹47.439 billion, while the margin narrowed to 29.3% from 31.3% a year earlier.
India formulations sales increased 17.3% to ₹55.5228 billion. Emerging-market formulations grew 7.6% to US$350 million, and rest-of-world formulations sales rose 3.1% to US$241 million. U.S. formulations declined 8.2% to US$455 million; Sun Pharma's presentation cited erosion in lenalidomide sales as a factor affecting that business.
Sun Pharma said planning for the proposed Organon deal was advancing, with approvals in place in most regions and remaining reviews on schedule. Its presentation gives Q4 FY27 as the indicative closing period. The two companies are to remain separate businesses until the transaction closes.