Sun Pharma Q1 FY26: Mixed Results Amid US Risks

Sun Pharma reported a 20% YoY drop in net profit to ₹2,279 crore in Q1 FY26, despite 9% revenue growth to ₹13,851 crore. EBITDA rose 19.2% to ₹4,302 crore with margin expanding to 31%. The US generics business declined 2.5% YoY due to ongoing manufacturing quality issues, dragging down performance. However, growth is expected from specialty brands like Ilumya, with Phase 3 data release in H2 CY25 and the delayed launch of Leqselvi in Q2FY26. A key risk remains potential US sanctions linked to past compliance violations, threatening supply and market access. The acquisition of Checkpoint Therapeutics adds strength to its oncology portfolio. Analysts retain 'Buy' ratings but have revised estimates lower due to regulatory and tariff risks. While margins remain strong, recovery depends on resolving US operational challenges.