Sun Pharmaceuticals’ share price fell 4.77% to an intraday low of Rs 1,636.60 on the National Stock Exchange (NSE). The decline came after the company reported weak quarterly earnings, with its US generics business continuing to underperform.
The pharma giant’s consolidated net profit in the fourth quarter of the financial year 2024-25 fell 19% year-on-year to Rs 2,154 crore, compared with Rs 2,659 crore in the same period a year ago.
However, Sun Pharma’s revenue from operations rose 8% YoY to Rs 12,959 crore, as against Rs 11,983 crore posted in the corresponding quarter of the last financial year.
Also, the company announced a final dividend of Rs 5.50 per equity share, fixing July 7, 2025, as the record date.
Elara Securities on Sun Pharmaceuticals: Maintains Accumulate
Sun Pharma’s US generics business remained a laggard compared to its peers, continuously suffering from manufacturing quality issues at many facilities. “We believe it could be 3-4 quarters before all the issues are sorted and the business course-corrects to a growth path,” said the brokerage firm. Sun Pharma’s management has guided to launch Leqselvi in the US markets by Q2FY26. “Overall FY26 guidance for topline growth at mid-high single digit percentage is below our original expectation,” said Elara Securities. The brokerage maintained its ‘Accumulate’ rating and retained the target price at Rs 1,871.
JM Financial Services on Sun Pharmaceuticals: Retains Buy
The drug major’s US formulations declined 2.5% YoY due to weakness in the generic segment, despite growth in speciality brands like Ilumya and Cequa. “Future growth is anchored in the Phase 3 data release of Ilumya in 2H CY25, the delayed launch of Leqselvi in 2QFY26, and the acquisition of Checkpoint Therapeutics, which enhances its oncology portfolio,” said JM Financial. The company maintained its Buy call on Sun Pharma, with a target price of Rs 2,025.
Sun Pharma’s stock performance
The share price of Sun Pharmaceuticals has fallen by over 4% in the last five trading sessions. The stock has fallen 6% in the last one month and over 7% in the previous six months. However, the stock holds gains of almost 12% over the last one year.