📈 Price History

Ratio Health

— Excellent

— Good

— Average

— Poor

By Category

Shareholding

About

Sun Pharma Advanced Research Company Ltd is engaged in the business of research and development (R&D) of pharmaceutical products.

✓ Strengths 1

Company has delivered good profit growth of 65.3% CAGR over last 5 years

! Concerns 2

Stock is trading at 5.10 times its book value
Working capital days have increased from -770 days to 214 days

Key Ratios Snapshot

📊 Sector Averages

📈 Growth Pattern

⚡ Latest Quarter —

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📊 Quick Scorecard

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📈 STRONG Record revenue & profit on likely milestone; sustainability uncertain.

Revenue

Revenue surged to ₹1,853 Cr from ₹27 Cr a year ago, an extraordinary 6,763% YoY jump, and 23,063% QoQ. This spike is almost certainly driven by a one-time milestone payment or licensing deal.

Profitability

Net profit came in at ₹1,761 Cr, up 2,987% YoY, with EPS at ₹54.26 (versus -₹1.88 a year ago). The zero tax rate suggests this profit may be from tax-exempt milestone income, boosting bottom-line margins.

Margins

Operating profit margin hit 96%, implying almost all revenue flowed to the bottom line. This is far above normal R&D-driven pharma margins and confirms a high-value, low-cost income event.

Cash Flow

Cash flow data was not disclosed. However, given the scale of profit and zero tax, it is likely that operating cash flow was strongly positive if the milestone was received in cash.

Balance Sheet

Borrowings stand at ₹559 Cr against reserves of ₹1,301 Cr, resulting in a debt-to-equity ratio of 0.42. Total assets of ₹2,168 Cr have been strengthened by the large profit addition.

Key Risks

1) The revenue spike is likely non-recurring, making future quarters unpredictable. 2) Zero effective tax rate may reverse as deferred tax or normal tax provisions apply later. 3) High margins are unsustainable without consistent milestone income.

Outlook

Future performance hinges on new milestones or progress in the pipeline. Absent further licensing income, revenue and profit will revert to R&D-driven levels, likely causing a sharp correction in reported numbers.

Generated by AI · Mar 2026 results · Not investment advice

📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Investment Risk:
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