Profit before exceptional items and tax rose 7.82% to Rs 4,302.90 crore from Rs 3,990.77 crore a year earlier. The company reported exceptional items of Rs 204.09 crore during the quarter, including a charge of Rs 167 crore towards due diligence, legal, filing and other transaction-related expenses incurred for the proposed acquisition of Organon & Co. Sun Pharma said additional acquisition-related costs are expected in the coming quarters.

EBITDA increased 2.7% year-on-year to Rs 4,417.7 crore in Q1 FY27. However, the EBITDA margin contracted to 28.9% in Q1 FY27 from 31.1% in the year-ago period.

India continued to be the company's strongest market, with formulation sales rising 16% to Rs 5,474.9 crore, contributing 36.1% of consolidated sales.

In the United States, formulation sales declined 9.7% year-on-year to $427 million, as growth in the Innovative Medicines portfolio was partly offset by weakness in the generics business. The US business accounted for around 26.6% of consolidated sales.

Emerging Markets formulation sales rose 4.2% to $311 million, contributing 19.4% of total consolidated sales, while formulation sales in the Rest of the World stood at $218 million, accounting for 13.6% of consolidated sales.

Global Innovative Medicines sales climbed 12.8% YoY to $351 million during the quarter and contributed 21.9% of consolidated sales.

Research and development expenditure stood at Rs 826.4 crore, representing 5.4% of sales.

Kirti Ganorkar, managing director, said, “Our performance during the quarter was driven by strong momentum in India as well as Innovative Medicines, which delivered robust growth across the U.S. and international regions. Recent semaglutide approvals in India, Brazil and South Africa underscore our capabilities in developing complex peptide products for patients globally. Organon shareholders have approved the proposed acquisition by Sun, which is on track to close in early 2027.”

Sun Pharmaceutical Industries is engaged in the business of manufacturing, developing and marketing a wide range of branded and generic formulations and active pharmaceutical ingredients (APIs). The company and its subsidiaries has various manufacturing facilities spread across the world, with trading and other incidental and related activities extending to the global market. It is the largest pharmaceutical company in India.

The counter declined 0.62% to close at Rs 1,988.25 on the BSE.