Highlights

• Multiple analysts have assigned buy ratings on Sun Pharma with target prices extending into early 2026.
• The company reported year-on-year growth in sales, EBITDA, and net profit for Q3FY26.
• The Board declared an interim dividend of ₹11.00 per share for FY26.

Sun Pharmaceutical Industries Ltd (NSE:SUNPHARMA) remained in focus on Monday as several brokerage firms maintained or reiterated buy ratings on the stock, supported by the company’s latest quarterly earnings and outlook. The renewed analyst interest followed Sun Pharma’s Q3FY26 financial results, which showed year-on-year growth across revenue, profit, and operating metrics, alongside an interim dividend announcement.

Buy Ratings From Several Brokerages

According to analyst estimates and brokerage reports, Sun Pharmaceutical Industries has received buy recommendations from several domestic and global research firms. The current consensus recommendation stands near the buy category (as per Refinitiv data), with target prices ranging from approximately ₹1,850 to above ₹2,100 over the next 12 months.

Brokerage firms including Jefferies, Prabhudas Lilladher, DAM Capital Advisors, JM Financial Institutional Securities, and BOB Capital Markets have issued buy calls, while a few houses have maintained add or reduce ratings. Most target prices indicate upside from the current market level, despite recent short-term movement in the stock.

Sun Pharma shares were trading at ₹1,612.00 on the NSE at 10:49 am on 2 February, up 0.12 percent on the day. The stock has declined 1.56% over the past five trading sessions.

Q3FY26 Earnings Support Analyst Outlook

Sun Pharma reported its Q3FY26 results on 31 January. Consolidated sales for the quarter stood at ₹154,691 million, marking a year-on-year increase of 15.1 percent. Net profit for the quarter came in at ₹33,688 million, up 16.0 percent compared with the same period last year.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 23.4 percent year-on-year to ₹49,485 million, with an EBITDA margin of 31.9 percent. Profit before exceptional items and tax stood at ₹47,166 million, an increase of 24.4 percent year-on-year.

The company’s global innovative medicines business recorded sales of USD 423 million during the quarter, including a USD 55 million milestone payment. Excluding milestones, innovative medicines sales rose 13.2 percent and accounted for 21.2 percent of consolidated revenue.

Performance Over Nine Months and Dividend Announcement

For the nine-month period ended December 31, 2025, Sun Pharma reported consolidated sales of ₹436,604 million, reflecting growth of 11.3 percent year-on-year. Net profit for the period stood at ₹87,654 million, while EBITDA rose 19.2 percent to ₹137,772 million, with a margin of 31.4 percent.

Research and development expenditure during the nine-month period amounted to ₹25,783 million, representing 5.9 percent of sales. The company operates across innovative medicines, generics, and consumer healthcare products, with a global presence.

The Board of Directors, at its meeting held on 31 January 2026, approved an interim dividend of ₹11.00 per share for FY26, compared with ₹10.50 per share declared in the previous year.

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