Sun Pharma's US innovation revenue overtakes its generics business

Sun Pharma reached a structural pivot in its US operations during FY26, as innovative medicines generated $1.1 billion in revenue, outstripping the firm's legacy generics business for the first time. This transition carries significant weight for long-term margins, though the Q4 results show the friction involved in that change. EBITDA margin slipped to 27.1% this quarter, pressured by increased operational spending and a drop in milestone income. Revenue grew 13.6% to ₹145.6 billion, keeping the company on a growth trajectory despite the bottom-line compression. Looking ahead, the US FDA has set an October 2026 action date for Leqselvi, Sun's treatment for alopecia areata. Management is sticking to a forecast of high single-digit top-line growth for FY27. What remains to be proven is whether margins can normalize sequentially as management anticipates, or if the cost of running a global innovative portfolio will remain a permanent fixture on the income statement.