There was no mistaking the company’s edge in the Indian drug market as it put the books away for FY26. In Q4, which ended May 22, 2026, consolidated net profit was up 26.24% to Rs 2,714.03 crore. The board has put forward a Rs 5 per share final dividend for the year, a sign of its commitment to putting money in shareholders’ pockets.
This isn’t just about one-off wins. Operating momentum has picked up across the board. You can see it in the 13.6% rise in consolidated revenue from operations to Rs 14,559.8 crore for the quarter, with home-grown strength and an innovative medicines book that is moving fast.
India momentum offsets US softness
India is where the action is. Formulation sales there were up 14.8% in the quarter to Rs 4,835.9 crore, or 33.2% of the total. For the full year, India formulation sales are in at 14% higher, at Rs 19,290.4 crore.
The company is also holding its ground. Pharmarack’s March 2026 report has Sun Pharma’s India share at 8.4%, up from 8.1%. With 11 new products in the quarter and 37 over the course of FY26, the firm is building out its chronic therapy and brand side of the business.
Innovative medicines reshape the portfolio
We are seeing a move to more valuable assets. Sales of global innovative medicines hit $354 million, a 20.1% jump that made up 22.2% of the quarter’s revenue and did some of the heavy lifting to counter the commoditised generics.
Over in the U.S., it has been a different tale. Formulation sales of $459 million were 1.1% lower than a year ago, though the innovative side of the house has helped. The U.S. still makes up 28.8% of the pie in Q4, with full-year figures of $1.90 billion.
Margins, cash deployment, and R&D
But you don’t have to look far to see the discipline. EBITDA was Rs 3,954.2 crore, 6.4% up, for a 27.1% margin. R&D ran to Rs 975.7 crore, 6.7% of sales.
On an annual basis, overall sales grew 11.9% and the EBITDA margin was 30.3%. “It’s been a matter of having a diversified business and keeping the pressure on in innovative medicines,” says MD Dilip Shanghvi, “and we haven’t let up on R&D.”
The returns to cash have been as you would expect. Add in the Rs 11 interim already in hand and the total for FY26 is Rs 16 a share, the same as last year. It is a solid payout after turning in a profit of Rs 2,149.88 crore in the same quarter a year back.
Where growth is coming from
Geographically, the risk is well spread. In Q4, India was 33%, the U.S. 29%, with 19% from emerging markets, 14% from the rest of the world and 5% from API and other lines. It is a healthy mix as the company puts its weight behind premiumised products.
Key developments shaping near-term strategy include:
– Market share in India at 8.4%, up from 8.1%
– 11 launches in Q4FY26, 37 in FY26
– Innovative medicines contributed 22.2% of revenue
What the results signal for rivals
What Sun has done in India, and the way its innovative medicines are coming through, is something for the competition to catch up on. To grow in double digits there and still hold your margins is no mean feat.
In the U.S. the generics game is tough, but the pivot to innovation is a good buffer. With India running at scale and some better traction in global specialty, Sun is in a position to hold its own at home and be selective in export markets.
What to watch next
Where it goes from here will be down to how well they can execute on these new therapies and get them to market. The 6.7% R&D spend is a clear signal of what’s in the pipeline. If you see a step-up in U.S. specialty or more of a foothold in India, the gains from this year could well carry over.
