Sun Pharmaceutical Industries
Sun Pharma is India's largest pharmaceutical company, selling generic drugs alongside a growing specialty/innovative portfolio (dermatology, oncology, ophthalmology) in India, the US and over 100 other countries.
- P/E ~33-37x
- US generics shrinking
- $11.75B Organon deal pending
- Down 12% from July peak
- Debt/equity ~0.05 (pre-deal)
Updated on 15 Oct 2026 · Data as of 15 Oct 2026
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Snapshot
- Share price
- ₹1,752.10
- 15 Oct 2026
- 52-week range
- ₹1,574.92 – ₹2,001.10
- All-time peak
- ₹2,001.10
- 30 Jul 2026 · −12.4% from peak
- Dividend yield
- 0.91%
- Price history since
- 1996
- About 30 years of prices
What's happening
The dominant story is Sun Pharma's agreed $11.75 billion acquisition of US-based Organon & Co, India's largest-ever outbound pharma deal, to be funded with existing cash plus roughly $9-9.8 billion of new debt and expected to close in early 2027 pending approvals. Moody's and S&P have already assigned investment-grade ratings to the deal. On October 12, 2026 the board approved raising up to ₹10,000 crore via NCDs to refinance the acquisition bridge loan, and a director resigned at the same meeting. Separately, shareholders approved reclassifying some promoter-group individuals as public on September 26, 2026, trimming promoter holding from 54.48% to 52.68%. Q1 FY27 results (July 31, 2026) showed revenue up 10.5% and profit up 27% YoY but missed some analyst estimates on US weakness.
In plain terms
Day to day, the business looks healthy: India sales are growing fast and newer specialty drugs are gaining prescribers in the US. But the company is about to take on billions of dollars of debt to buy Organon, a much bigger US company, and that bet - not this quarter's numbers - is what the market is now pricing. At the same time, a chunk of the old generics business in the US (led by one drug, Lenalidomide) is shrinking as competition catches up. The stock has done very well for years, but it has pulled back since July as investors weigh the leverage this deal will add.
Quarters
Q1 FY27 (June 2026 quarter): consolidated revenue ₹15,300 crore (+10.5% YoY, +4.7% QoQ), PAT ₹2,895 crore (+27% YoY). Note the YoY profit jump partly reflects a weak year-ago quarter, so the percentage overstates the underlying trend - EBITDA margin of 28.9% and gross margin of 80.5% are the cleaner reads. US sales fell 9.7% YoY to $427 million on Lenalidomide generic erosion and added competition; innovative/specialty sales rose 12.8% to $351 million (21.9% of total), led by Ilumya, Cequa and Odomzo, with newer launches Leqselvi (over 1,000 prescribers by June) and Unloxcyt gaining traction. India formulations grew 16%. Management reiterated high-single-digit revenue growth guidance. Next quarter's results date was not confirmed in search - check the NSE/BSE announcement.
Performance
Heads-up on splits: Sun Pharmaceutical Industries has split its shares or issued bonus shares before (most recently 2-for-1 on 29 Jul 2013, 5-for-1 on 25 Nov 2010 and 2-for-1 on 27 May 2004). A sudden price drop around a split date is usually just the price adjusting for the extra shares, not a crash.
Share price
+6.8% over 1 year
Returns by period
| Period | Sun Pharmaceutical Industries | Nifty 50 | Cipla |
|---|---|---|---|
| 3 months | −10.2% | −5.3% | −7.2% |
| 1 year | +6.8% | −10.0% | −14.1% |
| 3 years | +58.6% | +15.5% | +17.2% |
| 5 years | +120.2% | +23.3% | +53.0% |
₹100 invested on 18 Oct 2021 became…
- Sun Pharmaceutical Industries₹220
- Nifty 50₹123
- Cipla₹153
The stock has sharply outperformed both the Nifty and peer Cipla over 1, 3 and 5 years (+120% vs Nifty's +23% over 5 years), and no demerger or bonus/rights adjustment is needed to explain this - the last stock split was in 2013 and is already reflected in the price series. The current 12.4% drawdown from the July 30, 2026 peak is therefore a genuine valuation reset, not a corporate-action artifact, and it has coincided with the Organon financing news and US generic weakness - the stock is also underperforming over the last 3 months (-10.15% vs Nifty's -5.34%).
Dividend
Paid in the last 12 months
₹16.00 per share
Dividend yield
0.91%
Dividend yield is the last 12 months of dividends divided by today's share price. A 0.9% yield means every ₹100 of Sun Pharmaceutical Industries shares paid about ₹0.9 in dividends over the past year. Past payouts can change.
Recent dividends
| Date | Per share |
|---|---|
| 7 Jul 2026 | ₹5.00 |
| 5 Feb 2026 | ₹11.00 |
| 7 Jul 2025 | ₹5.50 |
| 6 Feb 2025 | ₹10.50 |
| 12 Jul 2024 | ₹5.00 |
| 9 Feb 2024 | ₹8.50 |
| 28 Jul 2023 | ₹4.00 |
| 8 Feb 2023 | ₹7.50 |
Valuation
At roughly 33-37x trailing earnings and about 5.2x book value, Sun Pharma trades at a clear premium to typical pharma multiples. Why: the market is paying for the specialty pipeline (Ilumya, Leqselvi, Cequa) scaling in the US, a resilient India franchise, and the promised 30-40% EPS accretion from Organon by FY28. Whether that premium is justified is a separate question - it depends on Organon integrating smoothly and the company delevering as promised; a stumble on either front would make today's multiple look expensive in hindsight.
Growth
Growth is becoming narrower rather than broader. India formulations (+16%) and the specialty portfolio (+12.8%, now 21.9% of sales) are both genuinely volume- and share-led. But this is increasingly offsetting, rather than adding to, a shrinking US generics base (-9.7%) hit by Lenalidomide losing exclusivity - so overall 10.5% revenue growth is being carried by fewer, higher-margin product lines, which is good for margins but means the growth base is less diversified than it was.
Health
On a standalone basis the balance sheet is unusually clean - debt/equity of around 0.05 - so historically the main risk here has been business/regulatory risk (US pricing pressure, FDA issues), not financial risk. That is changing: funding the Organon deal with roughly $9-9.8 billion of new debt will push pro forma net debt/EBITDA to about 2.3x. Investment-grade ratings suggest agencies see this as manageable, but the risk mix is shifting from pure operating risk toward leverage risk, and how fast the company delevers afterward is now a real variable to track.
Ownership
Promoters held 54.48% before a September 26, 2026 shareholder-approved reclassification moved some promoter-group individuals into the public category, taking the figure to 52.68%; promoter pledge is low at about 1.65% of promoter holding, not a red flag on its own but the reclassification itself is worth understanding further. Foreign institutions hold about 14.5%, mutual funds about 12.8%, and other domestic institutions about 9.3%. Not verified - no widely known individual marquee investor appears on the register based on available searches.
The View
The one thing to watch
Whether the Organon acquisition closes on schedule in early 2027 and how quickly Sun Pharma delevers afterward - the pro forma net debt/EBITDA of about 2.3x is the number that decides if this becomes a leverage story or a specialty-growth story.
Strengths
- +Innovative/specialty sales rose 12.8% YoY to $351 million, now 21.9% of total sales, reducing reliance on commoditized generics
- +India formulations, the single largest and most profitable segment, grew 16% in Q1 FY27
- +Entering the Organon deal from a position of real balance-sheet strength: debt/equity of roughly 0.05 before the new acquisition debt
- +Moody's and S&P have affirmed investment-grade ratings even after factoring in the Organon financing
Watchpoints
- !Organon integration and the roughly $9-9.8 billion in new acquisition debt will push pro forma net debt/EBITDA to about 2.3x - execution and deleveraging pace are now central to the thesis
- !US generics fell 9.7% YoY on Lenalidomide erosion and added competition - a structural headwind, not a one-quarter blip
- !The Halol manufacturing facility has remained on USFDA import alert since 2022, a persistent regulatory overhang
- !Stock is down 12.4% from its July 2026 peak and has underperformed the Nifty over the last 3 months, suggesting sentiment has turned cautious on the deal and US business
How sure are we about the data? · Moderate
Q1 FY27 results and Organon deal terms cross-checked across Business Standard, BioSpace and deal-analysis sources and were consistent. P/E (33x-37x) and P/B (5.2x-5.3x) are given as ranges because aggregator sites differ slightly; debt/equity (~0.05) and book value (~₹348/share) reflect the pre-Organon-financing balance sheet. Exact Q2 FY27 results date could not be confirmed - check the NSE/BSE announcement. Promoter and pledge figures are as of the September 2026 shareholding filing.
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Ticker Tales is not a SEBI-registered investment adviser or research analyst. This report is for learning only and is not investment advice. Data as of 15 Oct 2026.