Sun Pharmaceutical Industries is sharpening its focus on research and development, regulatory compliance, and manufacturing capabilities as it targets high single-digit consolidated revenue growth in FY27, Chairman Dilip Shanghvi said during the company’s latest earnings call.
The pharmaceutical major continues to invest heavily in strengthening both its global generics and innovative medicines businesses, with R&D remaining a key pillar of its long-term growth strategy.
R&D remains a strategic priority
Sun Pharma reported consolidated R&D investments of ₹975 crore during the fourth quarter of FY26, representing 6.7% of sales. The company noted that innovative R&D accounted for 36.9% of its total research expenditure during the quarter.
The company expects R&D spending to remain elevated in FY27, guiding for investments in the range of 6% to 7% of sales.
Shanghvi said :“We continue to invest in building an R&D pipeline for both the global generics and the Innovative Medicines business. Consolidated investments towards R&D for quarter 4 FY26 stands at ₹975 crore or 6.7% of sales. Innovative R&D accounted for 36.9% of our total R&D spend.”
FY27 growth outlook remains positive
Despite regulatory and macroeconomic uncertainties, Sun Pharma remains optimistic about its growth trajectory.
The company has projected high single-digit consolidated top-line growth for FY27, supported by its diversified portfolio, strong domestic presence, expanding emerging markets business, and investments in specialty and innovative products.
Generic business impacted by regulatory challenges
Addressing the performance of the generics business, Shanghvi acknowledged that compliance-related issues have affected the company’s ability to secure new product approvals, limiting growth opportunities in recent periods.
He noted that pricing pressure remains a structural challenge in the generics industry, making a steady flow of new launches critical to sustaining revenue growth.
Shanghvi said: “Because of the compliance issue, we haven’t been getting approval. And as all of you are aware, generic business is a business where pricing pressure will mean existing product will lose top line every year. So, I think as we start getting new approval, hopefully, we will start seeing some improvement.”
Shanghvi highlighted that the same R&D capabilities supporting the generics business are also driving growth across India, emerging markets, and other international geographies.
Focus on lifecycle management of innovative products
Sun Pharma is also intensifying efforts to maximise the value of its innovative medicines portfolio through a proactive lifecycle management strategy.
The company said investment decisions are carefully balanced against the remaining intellectual property protection available for products, making speed and efficiency critical in identifying new growth opportunities.
Shanghvi said :“We have an active life cycle management approach for all our innovative products. Sometimes the investment versus return, looking at the residual IP rights on the product, makes it difficult for us to commit large sums because we would have relatively low residual IP period. The idea for us is to accelerate our capability to identify and initiate the life cycle management programs faster.”
Strengthening compliance and manufacturing readiness
Alongside product development, Sun Pharma continues to invest in workforce training and quality systems to strengthen compliance standards across its operations.
The company said ongoing efforts are focused on ensuring that facilities consistently meet or exceed current Good Manufacturing Practice (cGMP) requirements. It is also developing new manufacturing capacity through a greenfield facility to support future global demand.