Sun Pharma shares rally 4% as Q3 profit surges 16% YoY; co announces interim dividend

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February 01, 2026

Sun Pharma shares rally 4% as Q3 profit surges 16% YoY; co announces interim dividend

Shares of Sun Pharmaceutical Industries rallied as much as 3.78%, touching an intraday high of Rs 1,655.70 on the NSE during Sunday’s trading session. The surge followed the company's strong quarterly performance, which boosted investor confidence.Sun Pharma reported a consolidated net profit of Rs 3,369 crore for Q3 FY26, up 16% from Rs 2,903 crore in the same quarter last year. Revenue from operations also grew 13% YoY to Rs 15,520 crore, compared with Rs 13,675 crore in Q3 FY25. The company’s EBITDA rose 23.4% year-on-year to Rs 4,948.4 crore, with margins improving to 31.9% from 29.3% previously, signalling better profitability and operational efficiency.Sun Pharma dividend updateSun Pharma announced an interim dividend of Rs 11 per equity share of Re 1 each for FY26. The record date for determining eligible shareholders is February 5, 2026, and the payout will be made on or before February 16.Sun Pharma segment performanceUS Formulations: Sales in the US stood at US$ 477 million, showing a small growth of 0.6%. Growth in innovative medicines offset a decline in generics, with the US contributing 27.5% of total consolidated sales.India Formulations: Domestic sales rose 16.2% to Rs 49,986 million, contributing 32.3% to total sales. For the first nine months, India’s sales reached Rs 144,545 million, a 13.7% increase over the previous year.Valuation MetricsSun Pharma’s P/E ratio is 36.49, Price/Sales ratio is 7.92, and Price/Book ratio is 5.26, reflecting investor expectations of strong growth.Institutional HoldingsForeign Institutional Investors (FIIs) reduced their stake from 16.55% to 16.12%, while mutual funds trimmed holdings from 12.41% to 12.09% in Q3 FY26. This points to cautious sentiment among large investors despite strong earnings.Also read: MCX shares crash 15%, hit lower circuit amid deepening gold, silver routTechnical OutlookThe 14-day RSI is 29.6, below the oversold threshold of 30, suggesting a potential rebound. However, the stock trades below 7 out of 8 key moving averages, except the short-term 5-day SMA, indicating some short-term weakness.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)