India’s largest drug maker Sun Pharmaceutical Industries, posted a 15 percent year-on-year (Y-o-Y) growth in its consolidated net profit at Rs 2,903.3 crore for the third quarter of the current financial year (Q3FY25), while revenue from operations grew by 10.5 percent to Rs 13,675.4 crore. The increase in net profit can be attributed to strong performance in domestic and emerging markets.
Sequentially, revenue from operations grew by 2.9 percent, whereas profit after tax (PAT) fell by 4.5 percent. Both profit and revenue were in line with Bloomberg estimates.
Dilip Shanghvi, chairman and managing director (CMD) of the company, said: “Our performance in the quarter showed all-round improvement. Product sales in Global Specialty crossed 1/5th of overall sales.
Our market share gain in India has been driven by industry-leading volume growth. Emerging markets demonstrated strong performance in spite of currency challenges across geographies. All our businesses remain well-positioned for the future.”
US formulation sales, constituting 30 percent of total revenue, experienced a slight decline of 0.7 percent, reaching $474 million. The decline in generic Revlimid sales impacted overall growth. Despite this, year-to-date US sales have grown by 5.7 percent, with specialty drugs like Ilumya (an injection that treats moderate-to-severe plaque psoriasis) and Domizol (to treat gastroesophageal reflux disease) showing strong momentum.
Sun Pharma also launched four new generic products in the US during the quarter.
The company’s branded consumer health business across geographies, particularly its $200 million OTC (over-the-counter) business in emerging markets, continues to be a key growth driver, though not reported separately.
Sun Pharma’s consolidated R&D investment for the quarter stood at Rs 845 crore, accounting for 6.3 percent of total sales, compared to Rs 824.5 crore in Q3FY24. Specialty R&D accounted for 41 percent of total R&D spend. Owing to delays in clinical trials, FY25 R&D spending has been revised downward to below 7 percent of sales.
Segment Performance
A closer look at Sun Pharma’s segment performance reveals that domestic formulation sales rose by 13.8% year-on-year to ₹4,300.4 crore, contributing approximately 32% to the company’s total revenue.
The growth in this segment was driven by new product launches and increased volume sales rather than price hikes, highlighting the company’s commitment to innovation and market expansion.