Sun Pharma Advanced Research Company's Q2 FY 2025-26 Quarterly Results

Result Summary

• Sun Pharma Advanced Research Company Ltd reported a 58.1% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 39.0%.
• Its expenses for the quarter were up by 18.5% QoQ and down 30.3% YoY.
• The net profit increased 46.2% QoQ and decreased 29.3% YoY.
• The earnings per share (EPS) of Sun Pharma Advanced Research Company Ltd declined at 2.34 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Sun Pharma Advanced Research Company Ltd (SPARC) is primarily engaged in the pharmaceutical industry, focusing on the research and development of new drugs and formulations. As a spin-off from Sun Pharmaceutical Industries, SPARC operates with a strategic emphasis on innovation in drug delivery systems and novel therapeutics. The company is renowned for its advanced research capabilities, aiming to address unmet medical needs across various therapeutic areas. SPARC's business model is heavily reliant on its research pipeline and partnerships for commercialization, which significantly impacts its financial performance. Recent developments within SPARC or the wider industry are not available, as this analysis is based solely on the provided financial data without external context.

Revenue

During the second quarter of FY26, Sun Pharma Advanced Research Company Ltd reported a total income of ₹7.87 crores. This represents a significant quarter-over-quarter (QoQ) decrease of 58.1% from ₹18.78 crores in the first quarter of FY26. Additionally, there was a year-over-year (YoY) decline of 39.0% compared to ₹12.90 crores recorded in the second quarter of FY25. Such fluctuations in revenue are critical as they reflect the company's ability to generate sales and other income over the periods. It is essential to note the underlying factors contributing to these changes, though specific reasons are not provided within the data.

Profitability

In the second quarter of FY26, the company's profit before tax (PBT) stood at a loss of ₹75.79 crores, compared to a loss of ₹51.81 crores in the previous quarter, indicating a QoQ increase in losses by 46.3%. On a YoY basis, the loss narrowed by 29.3% from ₹107.17 crores in the second quarter of FY25. After accounting for taxes, the profit after tax (PAT) remained a loss of ₹75.85 crores for Q2FY26, with similar percentage changes as PBT in both QoQ and YoY comparisons. Earnings per share (EPS) were reported at a negative ₹2.34, reflecting the company's current earnings performance amidst its operational challenges.

Operating Metrics

Total expenses for Sun Pharma Advanced Research Company Ltd in Q2FY26 amounted to ₹83.66 crores, representing an 18.5% increase from ₹70.59 crores in Q1FY26. However, there was a YoY decrease of 30.3% compared to ₹120.07 crores in Q2FY25. These figures indicate the company's cost structure and how it has evolved over time. The tax expense remained consistent at ₹0.06 crores between Q1FY26 and Q2FY26, showing no QoQ change, while YoY it decreased by 62.5% from ₹0.16 crores in Q2FY25. These operating metrics are crucial for understanding SPARC's cost management and operational efficiency within the given periods.