The Indian pharmaceutical industry experienced a significant development recently, as Sun Pharma's share price fell over 3% to ₹1,738 apiece on the National Stock Exchange (NSE) after the US Food and Drug Administration (US FDA) designated the company's Baska manufacturing facility as Official Action Indicated (OAI). This move has left investors wondering about the future of Sun Pharma.
The US FDA inspected Sun Pharma's Baska facility from September 8 to September 19, 2025, and subsequently classified it under OAI status. The company has stated that it will continue to manufacture and supply approved products from the facility to the US market and will work with the regulator to achieve a fully compliant status.
Sun Pharma reported a 2.5% year-on-year increase in consolidated net profit to ₹3,118 crore for Q2 FY26, compared with ₹3,040 crore in the same quarter last year. Revenue from operations climbed 9% YoY to ₹14,478 crore during the July–September period, up from ₹13,291 crore in Q2 FY25. Operating profit (EBITDA) rose sharply by 15% to ₹4,527 crore, versus ₹3,939 crore a year earlier, while the EBITDA margin improved to 31.2% from 29.6% in the corresponding quarter.
Brokerage firms have weighed in on the situation, with InCred Equities upgrading the Sun Pharma stock to 'add', with a target price of ₹2,000. The firm cited concerns about growth beyond January 2026 and potential margin contraction but noted bright spots in India revenue, which grew strongly by 10% YoY. Meanwhile, Choice Institutional Equities has maintained an 'add' rating on the pharma stock, with a target price of ₹1,825, citing the company's potential to maintain momentum and enter the GLP-1 market in India and Canada.
Some key points to consider about Sun Pharma's stock include:
Remember, this is a perspective, not a prediction. It's essential to do your own research and consult with an investment advisor before making any investment decisions.
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