Sun Pharmaceutical Industries continues to prioritise organic growth, disciplined capital allocation and innovation-led expansion, even as it selectively evaluates acquisition opportunities to strengthen its long-term strategic capabilities, Chairman Dilip Shanghvi said during the company’s latest earnings call.
The US remains a core market for Sun Pharma, particularly for its innovative medicines portfolio, while the company is also exploring opportunities to commercialise innovative therapies globally. In emerging markets, the company is evaluating small, bolt-on acquisitions that can be integrated into existing operations to build scale without disrupting strategic focus.
“Our emphasis remains on growing the business organically at a pace that keeps us an attractive long-term investment opportunity. Acquisitions will be pursued only if they clearly enhance our strategic capabilities,” Shanghvi said, reiterating the company’s disciplined stance on M&A.
Sun Pharma said it remains cautious about the size and complexity of acquisitions, ensuring that any transaction can be managed effectively without diverting attention from internal growth priorities. The company also indicated that it remains comfortable with raising debt, if required, to fund acquisitions that align with its long-term vision.
The company continues to make sustained investments in strengthening its R&D pipeline across global generics and innovative medicines. During Q3 FY26, consolidated R&D expenditure stood at ₹892 crore, accounting for 5.8% of sales. Innovative R&D represented 30.5% of total R&D spending and stood at 7.2% of global innovative medicines sales for the quarter, underscoring Sun Pharma’s increasing focus on proprietary products. During the quarter, the company filed an sBLA for Ilumya with the US FDA for Psoriatic Arthritis, received FDA approval for label updates on Unloxcyt, based on long-term data showing improved outcomes in advanced cutaneous squamous cell carcinoma, initiated global Phase-II trials of GL0034 for Type-2 diabetes and secured additional Ilumya label updates in the US with enhanced efficacy data for nail psoriasis.
Performance in the Innovative Medicines business was driven by a combination of growth in both US and ex-US markets. Sun Pharma recently launched Unloxcyt in the US and Ilumya in India, with early market feedback described as encouraging for both products.
Sun Pharma’s India formulations business posted a robust performance in Q3 FY26, with sales rising 16.2% year-on-year to ₹4,998 crore. India formulations accounted for 32.3% of consolidated sales during the quarter. The company continues to strengthen its leadership position in the domestic market. As per Pharmarack MAT December 2025, Sun Pharma ranked No. 1 in India, with a market share of 8.4%, up from 8.1% in the previous period.
Management reiterated that Sun Pharma’s strategy remains anchored around innovation, selective expansion, and capital discipline, with a clear focus on sustaining growth across key global markets while strengthening its leadership position in India.