Sun Pharma Share Price Slides Over 4% Post Q4 Results

Market Performance

Sun Pharma's share price experienced a sharp decline of over 4% following its Q4 FY25 earnings release. On Friday, the stock dropped as much as 4.86% to ₹1,636.30 on the BSE.

• As of 9:25 AM, the share was trading at ₹1,655.00, down 3.78%.
• Sun Pharma's share price has fallen over 7% in the past month.
• Year-to-date, the stock has declined more than 12%.
• However, on a longer-term basis, it has surged:
  • 11% in the past year
  • 80% over three years
  • A strong 254% return in the last five years

Main News

Sun Pharmaceutical Industries Ltd. released its financial results for the fourth quarter of FY25, showing a mixed performance across key markets.

Despite a robust performance in India, the Sun Pharma share price took a hit due to subdued numbers in the US generics segment and a notable dip in profitability.

Company Financials at a Glance

Revenue

• Q4 FY25 revenue rose 8% YoY to ₹12,959 Crore from ₹11,983 Crore.

Net Profit

• Net profit for the quarter fell 19% to ₹2,154 Crore, down from ₹2,659 Crore a year ago.

Segment-Wise Sales

• India Formulation Sales: ₹4,213 Crore, up 13.6% YoY
• US Formulation Sales: $464 million, down 2.5% YoY
• Global Specialty Sales: $295 million, up 8.6%, contributing 19.9% to total Q4FY25 sales

Dividend Announcement

• Final dividend declared: ₹5.50 per share
• Record date for dividend: July 7, 2025

Company Overview

Sun Pharmaceutical Industries remains a significant player in the global pharmaceutical sector, with consistent performance across multiple markets.

The company's strong India business helped offset weaker trends in the US, where generic price erosion continues to be a challenge.

Key highlights:

• Gross Margin for FY25 stood at a multi-year high of 79.6%
• Increased commercialization spend projected: $100 million
• Delays in the launch of Leqselvi and rising tax rates could act as near-term hurdles

Summary

The recent Sun Pharma share price drop reflects investor concerns following its Q4 FY25 earnings. While revenue showed steady growth, the decline in net profit and sluggish US market performance weighed heavily on the stock.

Sun Pharma demonstrates long-term resilience despite short-term pressures, backed by strong India sales and consistent global operations.

With market dynamics constantly shifting, investors will closely watch how the company navigates upcoming policy changes, cost pressures, and new product launches.