WatchTalking point
Cash conversion trending down
Cash conversion (CFO ÷ profit) has averaged 1.21× over the last 3 profit-making years versus 1.98× before that.
Importance 64 / 95 · cash quality
Sun Pharmaceutical Industries · Research view
Sun Pharmaceutical Industries Ltd.
NSE: SUNPHARMABSE: 524715ISIN INE044A01036Face value ₹1consolidated
₹1,810
−2.69% · 2026-10-01 · 52-wk ₹1,589–₹2,001
Financials to FY2026 · 8 years of history · prices to 2026-10-01consolidatedstandalone
Section 02 · Synthesis
What stands out?
The strongest observations the engine found, ranked. Every line is generated from the filed numbers by a fixed rule — no opinion, no estimate.
StrengthConcernWatchContext
StrengthTalking point
Debt reduced
Total debt is down from ₹9,893 to ₹4,082 over 7 years (58.7% lower); debt-to-equity moved 0.22× → 0.05×.
Importance 63 / 95 · financial health
WatchTalking point
Profit lagging revenue
Revenue grew 11.2% but profit grew 5.0%, so the company kept less of each rupee of revenue as profit.
Importance 62 / 95 · growth
WatchTalking point
Volatile earnings
Profit has swung sharply over 7 years (from ₹2,272 to ₹11,509) — one year is a weak guide to the earnings power.
Importance 58 / 95 · growth
Section 03 · The company
Who is this company?
Classified by the exchange under Healthcare › Healthcare › Pharmaceuticals & Biotechnology › Pharmaceuticals.
- Market cap
- ₹4.34 L cr
- FY2026 revenue
- ₹58,462 cr
- FY2026 net profit
- ₹11,509 cr
- Net worth
- ₹83,880 cr
- Total debt
- ₹4,082 cr
- EPS (basic)
- ₹47.80
- Listed
- NSE · BSE
- Reporting
- Ind-ASApr–Mar
Peer set used on this page: 12 pharmaceuticals.
Section 04 · Business performance
Is the business growing?
RevenueNet profit
Watch
Revenue grew 11.2% but profit grew 5.0%, so the company kept less of each rupee of revenue as profit.
Rule PROFIT_SLOWER_THAN_REVENUE
- Revenue growth per year
- +10.5%over 7 years
- Revenue growth
- +11.2%vs last year
- Net profit growth
- +5.0%vs last year
- Change in net profit since FY19
- +259%
Profit has swung sharply over 7 years (from ₹2,272 to ₹11,509) — one year is a weak guide to the earnings power.
Over 7 years profit compounded at 20.0% a year while revenue compounded at 10.5% a year — though FY2023 saw a one-off step-change of 151% (a merger, restructuring or a recovery off a low base), so the compounding is uneven.
Revenue has compounded at 10.5% a year over 7 years (₹29,066 → ₹58,462) — steady rather than rapid.
Section 05 · Recent activity
What changed recently?
Quarterly results, the trailing-twelve-months snapshot, and verified corporate actions — kept separate from each other and from the annual story above. Every figure traces to a filed number; nothing here is external news or commentary.
Strength
Q1 FY27 net profit was ₹2,901 cr, up 26.5% from ₹2,293 cr a year earlier.
Rule QTR_PROFIT_GROWTH_YOY
Strength
Q1 FY27 revenue was ₹15,300 cr, up 10.5% from ₹13,851 cr in Q1 FY26 a year earlier.
Rule QTR_REVENUE_GROWTH_YOY
Strength
Q1 FY27 net profit grew 26.5% while revenue grew 10.5% vs the same quarter last year — a gap of 16.1 percentage points.
Rule QTR_PROFIT_VS_REVENUE_GROWTH
A. Quarterly results
RevenueNet profit
| Quarter | Revenue | YoY | Net profit | YoY | Net margin |
|---|---|---|---|---|---|
| Q2 FY25 | 13,291 | — | 3,037 | — | 22.9% |
| Q3 FY25 | 13,675 | +10.5% | 2,913 | +13.8% | 21.3% |
| Q4 FY25 | 12,959 | +8.1% | 2,154 | −19.0% | 16.6% |
| Q1 FY26 | 13,851 | +9.5% | 2,293 | −19.8% | 16.6% |
| Q2 FY26 | 14,478 | +8.9% | 3,125 | +2.9% | 21.6% |
| Q3 FY26 | 15,521 | +13.5% | 3,381 | +16.1% | 21.8% |
| Q4 FY26 | 14,612 | +12.8% | 2,710 | +25.8% | 18.5% |
| Q1 FY27 | 15,300 | +10.5% | 2,901 | +26.5% | 19.0% |
B. TTM snapshot
Trailing twelve months to 30 Jun 2026 · sum of the last 4 contiguous quarters
- Revenue
- ₹59,911 crTTM
- EBITDA
- ₹20,078 crTTM
- EBIT
- ₹17,102 crTTM
- PBT
- ₹16,045 crTTM
- Net profit
- ₹12,117 crTTM
C. Corporate actions
7 Jul 2026DividendFinal Dividend - Rs. - 5.0000 — ₹5.00/share
5 Feb 2026DividendInterim Dividend - Rs. - 11.0000 — ₹11.00/share
7 Jul 2025DividendFinal Dividend - Rs. - 5.5000 — ₹5.50/share
6 Feb 2025DividendInterim Dividend - Rs. - 10.5000 — ₹10.50/share
12 Jul 2024DividendFinal Dividend - Rs. - 5.0000 — ₹5.00/share
9 Feb 2024DividendInterim Dividend - Rs. - 8.5000 — ₹8.50/share
28 Jul 2023DividendFinal Dividend - Rs. - 4.0000 — ₹4.00/share
8 Feb 2023DividendInterim Dividend - Rs. - 7.5000 — ₹7.50/share
19 Aug 2022DividendFinal Dividend - Rs. - 3.0000 — ₹3.00/share
9 Feb 2022DividendInterim Dividend - Rs. - 7.0000 — ₹7.00/share
23 Aug 2021DividendFinal Dividend - Rs. - 2.0000 — ₹2.00/share
9 Feb 2021DividendInterim Dividend - Rs. - 5.5000 — ₹5.50/share
19 Aug 2020DividendFinal Dividend - Rs. - 1.0000 — ₹1.00/share
17 Feb 2020DividendInterim Dividend - Rs. - 3.0000 — ₹3.00/share
20 Aug 2019DividendDividend - Rs. - 2.7500 — ₹2.75/share
17 Sept 2018DividendDividend - Rs. - 2.0000 — ₹2.00/share
18 Sept 2017DividendDividend - Rs. - 3.5000 — ₹3.50/share
8 Sept 2016DividendDividend - Rs. - 1.0000 — ₹1.00/share
14 Jul 2016BuybackBuy Back of Shares
21 Oct 2015DividendDividend - Rs. - 3.0000 — ₹3.00/share
11 Sept 2014DividendDividend - Rs. - 1.5000 — ₹1.50/share
19 Sept 2013DividendDividend - Rs. - 2.5000 — ₹2.50/share
29 Jul 2013Bonus issueBonus issue 1:1 — 1:2
14 Aug 2012DividendInterim Dividend - Rs. - 4.2500 — ₹4.25/share
2 Sept 2011DividendDividend - Rs. - 3.5000 — ₹3.50/share
Section 06 · Business performance
Is it becoming more profitable?
EBITDA marginNet margin
Margin and return trends are shown above.
- EBITDA margin now
- 33.7%
- 8-year range
- 23.2–33.7%
- ROE FY2026
- 14.7%
- ROCE FY2026
- 20.7%
Section 07 · Financial health
Is financial health improving?
Net worth (shareholders' funds)
Watch
Cash conversion (CFO ÷ profit) has averaged 1.21× over the last 3 profit-making years versus 1.98× before that.
Rule CASH_CONVERSION_DETERIORATING
Operating cash flowNet profit
- Total debt
- ₹4,082 cr
- Operating cash flow ÷ net profit
- 1.08×FY2026
- Free cash flow
- ₹8,906 cr
- Current ratio
- 2.82×
Total debt is down from ₹9,893 to ₹4,082 over 7 years (58.7% lower); debt-to-equity moved 0.22× → 0.05×.
Operating cash flow has matched or exceeded reported profit in 5 of the last 6 profit-making years (latest 1.08×).
Free cash flow has been positive in 6 of the last 6 years.
Section 08 · Relative position
How does it compare with peers?
Ranked against 12 pharmaceuticals (FY2026, consolidated). No peer-relative rule fired for this company.
Revenue growth
SUNPHARMA · 8th of 12 · set median 14.8%
EBITDA margin
SUNPHARMA · 2nd of 12 · set median 28.7%
Return on equity
SUNPHARMA · 6th of 12 · set median 14.4%
P/E ratio
SUNPHARMA · 6th of 12 · set median 36.3×
- P / E
- 35.8×TTM to Jun 26
- P / B
- 5.2×latest book
- P / S
- 7.2×TTM sales
- Earnings yield
- 2.8%TTM to Jun 26
On the trailing twelve months. Last full year: P/E 37.7× · P/S 7.2× · ROE 14.7%.
Section 09 · The stock
How has the stock performed?
Context
Over 5 years profit compounded at 38.3% a year while the stock returned 17.0% a year — but FY2021 profit (₹2,272) was well below the through-cycle level (~₹6,342), so this rate is inflated by the recovery from a low base.
Rule STOCK_LAGGED_EARNINGS · recovery
- 1-year return
- +10.6%
- 3-year return
- +56.2%
- 5-year return
- +119.0%
- From 52-wk high
- −9.5%
Section 10 · Technical data
What does the technical data say?
Price-action indicators as of 2026-10-01. Secondary to the fundamentals above — included for timing context, not as a signal.
- vs 50-day avg
- Below₹1,909
- vs 200-day avg
- Above₹1,808
- RSI (14)
- 37.5neutral
- MACD histogram
- -1.5
- From 52-wk high
- −9.5%
- From 52-wk low
- +13.9%
- 30-day volatility
- 19.9%ann.
- 6-month return
- +0.9%
Section 11 · Open questions
What should I investigate further?
Observations the engine tagged watch or deteriorating — prompts for your own research, not conclusions.
- WatchCash conversion trending downCash conversion (CFO ÷ profit) has averaged 1.21× over the last 3 profit-making years versus 1.98× before that.CASH_CONVERSION_DETERIORATING · conviction 64
- WatchProfit lagging revenueRevenue grew 11.2% but profit grew 5.0%, so the company kept less of each rupee of revenue as profit.PROFIT_SLOWER_THAN_REVENUE · conviction 62
- WatchVolatile earningsProfit has swung sharply over 7 years (from ₹2,272 to ₹11,509) — one year is a weak guide to the earnings power.EARNINGS_VOLATILE · conviction 58
- WatchReported profit carries a one-offFY2026 pre-tax profit includes a ₹1,307 exceptional charge (8.6% of PBT) — the underlying trend differs from the reported number.PROFIT_INCLUDES_EXCEPTIONALS · conviction 39
- Cash-flow-statement facts are unavailable for FY2019, FY2020 — those filings predate SEBI's Cash Flow Statement disclosure requirement. All other loaded years carry full P&L, balance sheet and cash-flow data.
Section 12 · Reference
The numbers
The full statements, kept deliberately secondary. Every figure traces to a BSE Integrated Filing (inline XBRL); ratios are recomputed from the normalised facts.
| Metric | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 29,066 | 32,838 | 33,498 | 38,654 | 43,886 | 48,497 | 52,578 | 58,462 |
| Total income | 30,091 | 33,473 | 34,334 | 39,576 | 44,520 | 49,851 | 54,543 | 60,434 |
| EBITDA | 7,333 | 7,626 | 9,327 | 11,319 | 12,281 | 14,377 | 17,237 | 19,703 |
| Profit before tax | 3,810 | 5,010 | 2,799 | 4,481 | 9,408 | 11,088 | 13,752 | 15,119 |
| Net profit | 3,208 | 4,172 | 2,272 | 3,389 | 8,513 | 9,610 | 10,965 | 11,509 |
| EPS (₹) | 11.1 | 15.7 | 12.1 | 13.6 | 35.3 | 39.9 | 45.6 | 47.8 |
| Net worth | 44,723 | 49,125 | 49,480 | 51,066 | 59,315 | 67,106 | 72,486 | 83,880 |
| Total debt | 9,893 | 7,578 | 3,343 | 931 | 6,198 | 2,846 | 1,870 | 4,082 |
| Operating cash flow | — | — | 6,170 | 8,985 | 4,959 | 12,135 | 14,072 | 12,419 |
| Free cash flow | — | — | 5,000 | 7,550 | 2,895 | 9,964 | 12,005 | 8,906 |
| Ratio | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|
| Growth | ||||||||
| Revenue growth YoY | — | 13.0 | 2.0 | 15.4 | 13.5 | 10.5 | 8.4 | 11.2 |
| Profit growth YoY | — | 30.1 | -45.5 | 49.2 | 151.2 | 12.9 | 14.1 | 5.0 |
| Profitability | ||||||||
| EBITDA margin % | 25.2 | 23.2 | 27.8 | 29.3 | 28.0 | 29.6 | 32.8 | 33.7 |
| Net margin % | 10.7 | 12.5 | 6.6 | 8.6 | 19.1 | 19.3 | 20.1 | 19.0 |
| Return on equity % | 7.2 | 8.9 | 4.6 | 6.7 | 15.4 | 15.2 | 15.7 | 14.7 |
| Return on capital % | 10.2 | 10.0 | 13.2 | 17.5 | 16.6 | 17.5 | 20.3 | 20.7 |
| Leverage & cash | ||||||||
| Debt to equity | 0.22 | 0.15 | 0.07 | 0.02 | 0.10 | 0.04 | 0.03 | 0.05 |
| Cash flow ÷ profit | — | — | 2.72 | 2.65 | 0.58 | 1.26 | 1.28 | 1.08 |
| Current ratio | 1.79 | 2.02 | 1.89 | 2.04 | 2.00 | 2.56 | 2.89 | 2.82 |