Mumbai, India – Sun Pharmaceutical Industries Ltd (Sun Pharma), India’s largest drugmaker by revenue, surpassed analysts’ expectations with its latest quarterly earnings, driven by robust demand in the domestic market.

The Mumbai-based firm reported a consolidated net profit of 31.18 billion rupees ($354.7 million) for the quarter ended September 30, up from 30.4 billion rupees in the same period last year. This exceeded the analysts’ average forecast of 29.97 billion rupees, according to LSEG data.

Revenue Growth Driven by India Sales

Total revenue climbed 8.6% to 144.05 billion rupees, above the expected 141.94 billion rupees, thanks to an 11% increase in domestic sales, Sun Pharma’s largest revenue segment.

The company continues to strengthen its portfolio of innovative drugs in dermatology, oncology, and obesity therapy, targeting mid-to-high single-digit revenue growth for the current fiscal year. Sales of high-margin global innovative drugs, including treatments for alopecia and psoriasis, rose 16.4% to $333 million.

U.S. Market Dynamics

For the first time, U.S. sales of innovative medicines surpassed generics, according to Managing Director Kirti Ganorkar. However, overall U.S. revenue, Sun Pharma’s second-largest market, fell 4.1% to $496 million due to pricing pressures from intense competition.

Other Indian pharma companies showed mixed results: Dr Reddy’s Laboratories missed profit expectations, while Cipla exceeded them, although both reported lower U.S. sales during the quarter.

Sun Pharma’s strong performance underscores its focus on domestic market growth and high-margin innovative drugs, helping it navigate challenges in global markets while maintaining profitability.