1. At a Glance

If the Indian pharma world had a monarchy,Sun Pharmawould be the guy wearing the golden stethoscope — ruling the chronic disease kingdom while occasionally paying fines to the FDA like traffic challans. With amarket cap of ₹4,05,488 crore, this ₹1,690-per-share juggernaut just reportedQ2FY26 consolidated sales of ₹14,478 croreandPAT of ₹3,125 crore, modestly up2.6% QoQand8.9% YoY. But wait — there’s also the₹200 million (₹1,670 crore) US settlementin the background. Because apparently, global pharma domination comes with “legal vitamins.”

Operating profit? A healthy₹4,527 crore, pushing operating margins to a tasty31%, up from 29% last quarter. Stock’sP/E stands at 35x, ROE at16.9%, and dividend yield at0.95%— all of which scream “we’re rich but not reckless.” Debt? Barely₹5,215 crore, giving it a0.07x D/E ratio— practically debt-free.

So yes, Dilip Shanghvi’s empire is still minting profits, facing FDA slap-and-heal routines, and launching new dermatology blockbusters likeLEQSELVI™while most rivals are still figuring out their glucose levels.

2. Introduction

Welcome to the wonderful, confusing world of Indian pharma, where every company either dreams of being Sun Pharma or dreams of being sued like it. For a firm that started in 1983 making psychiatry drugs, Sun now makes everything from antidepressants to billion-dollar settlements.

InQ2FY26, the company once again flexed its global presence —41 manufacturing sites,380 APIs,26+ specialty brands, andoperations across 100+ countries.The quarter wasn’t scandal-free, of course. The US FDA’sHalol facilityonce again made headlines with anOAI (Official Action Indicated)classification, basically FDA’s way of saying “bro, clean your kitchen.”

Meanwhile, Sun continued doing what it does best: collecting therapies like Pokémon cards — dermatology, ophthalmology, onco-dermatology, you name it. And just when analysts thought Sun had run out of steam, it announced a$355 million acquisition of Checkpoint Therapeutics, adding more firepower to its oncology arsenal.

Is Sun Pharma’s business too big to fail, or too complicated to fully understand? Maybe both. But one thing is clear — in an industry of generic players, Sun’s strategy remains verybrand-conscious.

3. Business Model – WTF Do They Even Do?

Think of Sun Pharma as that overachieving cousin who doesn’t just study medicine — he also owns the hospital, pharmacy, and probably your blood test lab. The company runs five global segments, and every one of them contributes meaningfully to the ₹55,000 crore annual revenue pie.

a) India Branded Generics (32% of 9M FY25 revenue)— the home turf and cash cow. With8.2% market share, Sun dominates inneuropsychiatry, cardiology, gastroenterology, diabetes, and pain management.Basically, if you have stress, reflux, or a heart condition, there’s a good chance your medicine box already says “Sun.”

b) US Formulations (31%)— Sun is the12th largest generic pharma company in the US, and second in dermatology prescriptions. The US market’s 7% YoY growth shows Sun knows how to survive America’s brutal price wars — with dermatology leading the way.

c) Emerging Markets (18%)— Sun’s empire spreads fromBrazil to Romania, where its 2,500+ sales reps hustle to push Revital H, Volini, and other global household names.

d) Rest of World (14%)— Western Europe, Canada, Australia, Japan — this segment’s basically “everywhere else that buys medicines.”

e) APIs & Consumer Healthcare (5%)— the hidden muscle. Sun makes380 APIs(the chemical building blocks for drugs) and sells consumer brands likeVolini,Abzorb, andRevital Hacross 25+ countries.

So yes, Sun Pharma doesn’t just make pills. It makesthe pills that make other pills possible.

4. Financials Overview

EPS annualized = ₹13 × 4 = ₹52. P/E = 1,690 / 52 ≈32.5x.