1. Opening Hook
While AI startups are chasing synthetic biology dreams, Dilip Shanghvi’s Sun Pharma quietly turned them into EBITDA. The company’s generics may be gasping for breath, but its innovative drugs are out here flexing — ILUMYA literally shining in 35 markets. Investors? They’re still trying to figure out whether “Leqselvi” is a drug or a Gujarati dessert.Keep reading — the drama of tariffs, tax rates, and trillion-dollar temptations is only warming up. ☕
2. At a Glance
- Revenue up 8.6%– No “one-off” miracles, just the magic of ILUMYA and some dermatological dominance.
- EBITDA up 14.9%– Margins got a glow-up; someone moisturized the P&L.
- EBITDA margin at 31.3%– That’s skincare-level consistency.
- Net Profit up 2.6%– Profits showed up fashionably late but at least didn’t cancel.
- Tax Rate 24.7%– The finance team stopped believing in tax holidays.
- U.S. Sales down 4.1%– Generics ghosted again; innovation picked up the bill.
- Cash $2.9B– Enough liquidity to buy another biotech or a small country.
3. Management’s Key Commentary
“U.S. Innovative Medicines sales surpassed generics for the first time.”(Translation: We finally stopped being the Walmart of pharma and became the Apple Store.)😎
“ILUMYA is now available in 35 markets.”(Translation: Our psoriasis drug travels more than Indian influencers in Europe.)
“Emerging markets grew 10.9%, aided by favorable currency movement.”(Translation: Rupee tantrums sometimes work in our favor.)
“Effective tax rate rose to 24.7%.”(Translation: The government remembered we exist.)
“R&D spend was 5.4% of sales, lower end of guidance.”(Translation: Innovation is expensive, but so are investors’ expectations.)
“We’re open to more U.S. manufacturing.”(Translation: If tariffs become reality, we’ll set up camp in Texas.)🤠
“Cequa continues to grow despite Restasis generics.”(Translation: Dry eye, wet margins.)
4. Numbers Decoded
| Metric | Q2FY26 | YoY Growth | Comment |
|---|---|---|---|
| Revenue | ₹144,052 mn | +8.6% | India +11%, Emerging +10.9%, ROW +17.7% |
| EBITDA | ₹45,271 mn | +14.9% | Margin up to 31.3% |
| Net Profit | ₹31,180 mn | +2.6% | Tax rate stole the show |
| R&D Spend | ₹7,827 mn | 5.4% of Sales | Below 6–8% guidance |
| Cash | $2.9 B | Stable | After Checkpoint & GxMDL settlement |
| U.S. Sales | $496 mn | -4.1% | Generic decline offset by specialty rise |
Innovation carries the show while Generics sit in the audience pretending to clap.
5. Analyst Questions
- Macquarie:“Why did intangibles balloon?”Checkpoint acquisition and Leqselvi got pricey makeovers.
- BofA:“When will Leqselvi revenues kick in?”“Soon™” — the pharma version of “next week.”
- Systematix:“Why did your assets double?”GxMDL escrow — lawyers’ retirement plan secured.
- Goldman Sachs:“What’s next for Generics?”Management: “We’ll grow both.” Translation: “We hope the generics don’t die completely.”
- PhillipCapital:“GLP-1 ambitions?”Sun’s reply: “We’ll be there… eventually.” (Insert dramatic diabetic pause.)
6. Guidance & Outlook
Management aims to grow innovative medicines faster than the market, betting big on ILUMYA, ODOMZO, Leqselvi, and soon-to-launch UNLOXCYT. India business to outpace IPM, driven by volumes, not just price hikes — a flex in an inflationary world.R&D
