Introduction:
Sun Pharmaceutical Industries Ltd., India’s largest pharmaceutical company by market capitalization, saw its share price close at ₹1,580.10 on the NSE on September 26, 2025, down 2.71% from ₹1,628.00, driven by market reactions to a US announcement of a 100% tariff on imported branded and patented pharmaceuticals. The stock hit a 52-week low of ₹1,547.00 during intraday trading, reflecting a broader 5% decline in Indian pharma stocks like Biocon and Zydus Lifesciences, as reported by Economic Times. Sun Pharma, with a market cap of ₹378,747 crore, has underperformed the market, dropping 13.73% in 2025 against a 2% BSE Sensex rise, per Business Standard.Link
Despite the downturn, Sun Pharma’s financials remain strong, with FY25 revenue at ₹52,578.44 crore (up 8.3% YoY) and net profit at ₹10,980.10 crore (up 13.8% YoY). The company’s focus on specialty drugs like Leqselvi and Ilumya, coupled with a 54.48% promoter holding, supports its long-term outlook. The tariff, announced by US President Donald Trump, targets patented drugs but offers exemptions for companies building US manufacturing facilities, which Sun Pharma has not yet committed to. Why does this matter? As India’s top pharma exporter to the US, Sun Pharma’s stock volatility highlights global trade risks, yet its diversified portfolio and domestic growth offer resilience. This article details the latest share price, tariff impact, financial performance, analyst views, and investment considerations as of September 26, 2025.
Share Price Update: September 26, 2025
- Closing Price: ₹1,580.10 (NSE), ₹1,581.65 (BSE). Link
- Daily Change: Down 2.71% from ₹1,628.00.
- Intraday Range: ₹1,547.00 (52-week low) to ₹1,602.90. Link
- 52-Week Range: ₹1,548.00 (low) to ₹1,960.35 (high). Link
- Market Cap: ₹378,747 crore.
- Trading Volume: 8.99 lakh shares (vs. 27.31 lakh monthly average). Link
- P/E Ratio: 36.52 (sector median: 33.39).
- P/B Ratio: 5.08 (vs. historical 5.48).
- Dividend Yield: 0.98% (last dividend ₹5.50, July 7, 2025). Link
The stock’s decline aligns with a 5% sector drop, triggered by tariff news impacting US-focused exporters.Link
Why the Drop? US Tariff Announcement
On September 26, 2025, US President Donald Trump announced a 100% tariff on imported branded and patented pharmaceuticals, targeting companies like Sun Pharma, Cipla, and Zydus Lifesciences, which rely heavily on the US market (29.3% of Sun Pharma’s Q1 FY26 sales). The tariff, aimed at boosting domestic manufacturing, exempts firms with US facilities under construction, a condition Sun Pharma does not currently meet. This follows earlier August 2025 reports of potential “Most Favoured Nation” pricing pressures, which Sun Pharma clarified it was not directly affected by.
The tariff news led to a 5% intraday slide to ₹1,547.00, nearing the 52-week low of ₹1,548.00 set on March 3, 2025. The Nifty Pharma index fell 2.11% in the last month, reflecting sector-wide pressure.
Financial Performance: Robust Growth Despite Volatility
Sun Pharma’s FY25 financials showcase resilience:
- Revenue: ₹52,578.44 crore (+8.3% YoY).
- Net Profit: ₹10,980.10 crore (+13.8% YoY).
- EPS: ₹45.60 (vs. ₹39.90 FY24).
- ROE: 15.13% (5-year avg: 12.28%).
- Debt-to-Equity: 0.03 (near debt-free).
For Q1 FY26 (April-June 2025):
- Total Income: ₹14,315.86 crore (+8.57% YoY).
- Net Profit: ₹2,278.63 crore (-19.64% YoY, but +5.99% QoQ).
- US Business: $473 million (+1.4% YoY), driven by specialty drugs like Ilumya and Leqselvi, offset by generic competition.
The company’s focus on dermatology, ophthalmology, and onco-dermatology, along with a ₹100 million specialty product launch budget, supports margin expansion (250 bps YoY in Q1 FY26), per BNP Paribas.
Analyst Views: Cautious Optimism
- Nuvama Institutional Equities: “Hold” with ₹1,830 target (15.8% upside), citing domestic growth and Leqselvi’s US traction.
- BNP Paribas India: Expects 300 bps EBITDA margin growth by FY28 but cut FY26-28 EPS estimates by 6-7% due to higher taxes.
- ICICI Securities: “Buy” with ₹1,800 target (13.9% upside), highlighting specialty pipeline.
- Dilip Davda (Chittorgarh): “Long-term investment; tariff risks overblown for diversified players like Sun Pharma.”
Risks: Tariff implementation, generic pricing pressure. Opportunities: Specialty drug launches, domestic market growth (8-10% projected).
Historical Price Trends: 2025 Underperformance
The stock’s 2025 decline contrasts with its long-term strength, driven by specialty portfolio growth.
Potential Impacts: Investors and Pharma Sector
For investors, the tariff news introduces short-term volatility, but Sun Pharma’s diversified revenue (70% non-US) and specialty focus mitigate risks. The stock’s 0.98% dividend yield and near debt-free status appeal to long-term holders. The sector faces a potential 5-7% export revenue hit if tariffs persist, but US facility investments could offset this, per Economic Times. Sun Pharma’s 6-8% R&D spend in FY26 supports future growth.
Conclusion: Sun Pharma’s Resilience Amid Tariff Storm
Sun Pharma’s share price of ₹1,580.10 on September 26, 2025, reflects a 2.71% drop due to US tariff concerns, hitting a 52-week low. Yet, its ₹52,578 crore revenue, ₹378,747 crore market cap, and specialty drug pipeline signal long-term strength. Investors should monitor tariff developments but consider holding for growth. Track live updates on Moneycontrol or NSE India—more market insights on nuvexic.com.
FAQ
1.What is Sun Pharma’s share price today?
₹1,580.10 (NSE, September 26, 2025).
2.Why did the stock fall?
US 100% tariff on patented drugs announced September 26.
3.52-week high/low?
₹1,960.35 / ₹1,548.00.
4.Is it a good time to buy?
Analysts suggest “Hold” or “Buy” for long-term, monitor tariff impact.