Sun Pharmaceutical Industries Limited plans to increase its research and development (R&D) spending to nearly 6–7% of sales for FY27, as the company continues to strengthen its pipeline of generic and innovative medicines. Dilip Shanghvi, Founder and Executive Chairman of Sun Pharmaceutical Industries Limited, said the company will continue investing aggressively in both generic formulations and innovative product development. He noted that nearly 36% of the company’s total R&D expenditure during the year was directed toward innovative products, reflecting Sun Pharma’s increasing focus on specialty and high-value therapies.
Q4 Profit Jumps 26.2% on Strong Sales Growth
The company reported a 26.2% year-on-year increase in consolidated net profit for the fourth quarter ended March 31, 2026. Net profit stood at ₹2,714 crore during the quarter. Meanwhile, fourth-quarter sales rose 13.6% to ₹14,559 crore, driven by strong domestic performance and continued momentum in innovative medicines. Sun Pharma’s global innovative medicines business, previously classified under specialty medicines, reported sales of $354 million during the quarter, marking a 20.1% growth. The segment contributed 22.2% of the company’s total sales during Q4 FY26.
R&D Investments Continue to Strengthen Product Pipeline
Sun Pharmaceutical Industries Limited continued to maintain strong investment in research and development activities. The company’s R&D spending during the fourth quarter stood at ₹975 crore, accounting for 6.7% of sales. For the full financial year FY26, total R&D expenditure reached ₹3,554 crore, representing 6.1% of annual sales. The company stated that these investments are aimed at strengthening both its generic product portfolio and innovative medicines pipeline across global markets.
Organon Acquisition Expected to Close in Q4 FY27
Commenting on the recently announced US$ 11.75 billion acquisition of Organon & Co., Dilip Shanghvi said the company has already established an integration management office and initiated activities to ensure operational readiness from day one. He added that regulatory filings across multiple markets are currently in progress, and the acquisition is expected to be completed during the fourth quarter of FY27.
Strong Performance Across India and Global Markets
Kirti Ganorkar, Managing Director of Sun Pharmaceutical Industries Limited, said the company delivered several significant milestones during FY26. He highlighted that Sun Pharma achieved a 0.3 percentage point gain in the Indian pharmaceutical market — the company’s highest market share gain since the acquisition of Ranbaxy Laboratories. Ganorkar also noted that Sun Pharma’s US innovative medicines business crossed the $1 billion revenue mark, while the ex-US innovative medicines business continued to witness strong growth momentum. The proposed Organon acquisition is expected to further accelerate Sun Pharma’s transformation into a leading global pharmaceutical company. As reported by thehindubusinessline.com, with continued investments in innovation, expanding global operations, and strategic acquisitions, Sun Pharmaceutical Industries Limited remains focused on strengthening its position in the global pharmaceutical industry.
