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 ₹1standalone
₹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
- ₹20,755 cr
- FY2026 net profit
- ₹2,623 cr
- Net worth
- ₹22,371 cr
- Total debt
- ₹13,420 cr
- EPS (basic)
- ₹10.90
- 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
- −9.8%vs last year
- Net profit growth
- −38.7%vs last year
- Change in net profit since FY19
- +221%
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
- 31.8%
- 8-year range
- 24.1–33.7%
- ROE FY2026
- 11.2%
- ROCE FY2026
- 14.9%
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
- ₹13,420 cr
- Operating cash flow ÷ net profit
- 2.48×FY2026
- Free cash flow
- ₹4,987 cr
- Current ratio
- 2.56×
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 | 10,303 | 12,532 | 12,803 | 15,586 | 20,812 | 20,275 | 23,003 | 20,755 |
| Total income | 11,575 | 14,043 | 12,953 | 16,544 | 21,091 | 20,741 | 23,373 | 21,174 |
| EBITDA | 3,028 | 4,223 | 3,086 | 3,865 | 6,752 | 6,053 | 7,162 | 6,600 |
| Profit before tax | 719 | 3,253 | 2,153 | 307 | 1,741 | 3,450 | 5,031 | 3,794 |
| Net profit | 817 | 3,211 | 2,140 | −100 | 1,691 | 2,858 | 4,283 | 2,623 |
| EPS (₹) | 3.4 | 13.4 | 8.9 | −0.4 | 7.0 | 11.9 | 17.8 | 10.9 |
| Net worth | 22,844 | 24,396 | 25,040 | 24,588 | 23,748 | 23,694 | 24,340 | 22,371 |
| Total debt | 5,851 | 5,762 | 6,486 | 4,869 | 7,593 | 11,047 | 10,954 | 13,420 |
| Operating cash flow | — | — | 1,737 | 7,636 | 507 | −292 | 4,199 | 6,501 |
| Free cash flow | — | — | 986 | 6,833 | −447 | −1,027 | 3,545 | 4,987 |
| Ratio | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|
| Growth | ||||||||
| Revenue growth YoY | — | 21.6 | 2.2 | 21.7 | 33.5 | -2.6 | 13.5 | -9.8 |
| Profit growth YoY | — | 293.2 | -33.4 | — | — | 69.1 | 49.8 | -38.7 |
| Profitability | ||||||||
| EBITDA margin % | 29.4 | 33.7 | 24.1 | 24.8 | 32.4 | 29.9 | 31.1 | 31.8 |
| Net margin % | 7.1 | 22.9 | 16.5 | -0.6 | 8.0 | 13.8 | 18.3 | 12.4 |
| Return on equity % | 3.6 | 13.6 | 8.7 | -0.4 | 7.0 | 12.0 | 17.8 | 11.2 |
| Return on capital % | 8.6 | 12.4 | 8.1 | 8.2 | 16.9 | 13.5 | 16.9 | 14.9 |
| Leverage & cash | ||||||||
| Debt to equity | 0.26 | 0.24 | 0.26 | 0.20 | 0.32 | 0.47 | 0.45 | 0.60 |
| Cash flow ÷ profit | — | — | 0.81 | — | 0.30 | -0.10 | 0.98 | 2.48 |
| Current ratio | 0.84 | 1.07 | 1.45 | 0.96 | 1.97 | 3.36 | 1.03 | 2.56 |