Sun Pharma share price falls over 4% after Q4 results. Should you buy, hold or sell?

Sun Pharma share price declined more than 4% on Friday after the drug major reported its Q4 results. Sun Pharma shares fell as much as 4.86% to ₹1,636.30 apiece on the BSE.

Sun Pharmaceutical Industries reported a consolidated net profit of ₹2,154 crore in the fourth quarter of FY25, registering a decline of 19% from ₹2,659 crore in the year ago period.

The company’s revenue from operations in Q4FY25 increased 8% to ₹12,959 crore from ₹11,983 crore, year-on-year (YoY).

Sun Pharma's India formulation sales rose 13.6% YoY in Q4FY25 to ₹4,213 crore, while US formulation sales came at $464 million, down 2.5%YoY during the quarter.

Global speciality sales increased 8.6% to $295 million, accounting for 19.9% of Q4FY25 sales, Sun Pharma said.

Sun Pharmaceutical Industries' board of directors also announced a final dividend of ₹5.50 per equity share. Sun Pharma dividend record date has been fixed as July 7, 2025.

Should you buy Sun Pharma shares after Q4 results?

Sun Pharmaceutical Industries reported a mixed set to earnings druing the quarter ended March 2025, with strong performance in India business and a muted US generics business.

“We like Sun Pharmaceuticals’ gross margin performance; however, its commercialisation spend is set to increase by $100 million. Delay in Leqselvi launch, potential US policy changes related to brand name drugs and increase in the tax rate are the near-term overhangs on the stock,” Nuvama Institutional Equities said.

The brokerage firm cuts FY26E and FY27E EBITDA margin estimates by 30 bps and 40 bps and forecasts an 8% PAT CAGR over FY25–27E. Nuvama Equities thinks Sun Pharma’s improving product mix can partially offset the effects of higher operating costs and tax rate. However, the uncertainty on potential tariffs and pricing reset as per MFN pricing may lead to future earnings cuts.

It retained a ‘Hold’ rating on Sun Pharma shares with an unchanged target price of ₹1,830 apiece.

Shashank Krishnakumar, Senior Research Analyst at Emkay Global Financial Services said that Sun Pharmaceutical Industries’ Q4FY25 EBITDA was broadly in line with street estimates and ahead of the expectations on the back of higher gross margin (FY25 gross margin of 79.6% at a multi-year high) and lower R&D spend.

“We are not too perturbed by the company’s FY26 sales growth guidance (mid-to-high single digit) and believe that overall sales growth is likely to be closer to the higher end of the range. We cut FY26E / FY27E EPS by 4% / 2%,” said Krishnakumar.

The brokerage firm has retained a ‘Buy’ rating with Sun Pharma share price target of ₹2,250 for March 2026.

Choice Broking revised its earnings estimates downward by 13.0% and 11.8% for FY26E and FY27E, respectively. It maintained valuation at an unchanged PE multiple of 30x on FY27E EPS for Sun Pharma shares.

The brokerage firm downgraded its rating on Sun Pharma shares to ‘Add’ and cut the target price to 1,825 per share from ₹2,200 earlier.

Sun Pharma share price has fallen over 7% in one month and more than 12% YTD. However, over the past one year, Sun Pharma shares have rallied 11% and have jumped 80% in three years. The pharma stock has delivered multibagger returns of 254% in the past five years.

At 9:25 AM, Sun Pharma share price was trading 3.78% lower at ₹1,655.00 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.