Sun Pharma books Rs 346 crore Organon deal costs in Q2; profit falls 36%

Sun Pharmaceutical Industries incurred acquisition-related costs of Rs 346.16 crore in the September quarter as it continued preparations for its proposed acquisition of Organon & Co. The company reported a 36.2% year-on-year decline in consolidated net profit for the second quarter of FY27.

The acquisition-related charge includes diligence, legal, filing, commitment and syndication fees, along with other transaction costs associated with the proposed deal. Sun Pharma said additional acquisition-related costs are expected in subsequent periods.

The company reported consolidated net profit of Rs 1,988.53 crore in Q2 FY27, compared with Rs 3,117.95 crore in the corresponding quarter last year. Revenue from operations rose 11.9% to Rs 16,198.71 crore from Rs 14,478.31 crore a year earlier.


The quarter’s exceptional items also included a Rs 922.67 crore settlement with a plaintiff in the Generic Pharmaceuticals Pricing Antitrust Litigation in the US District Court for the Eastern District of Pennsylvania. The settlement was accompanied by a tax benefit of Rs 95.34 crore.

Sun Pharma’s profit before exceptional items and tax increased 6.3% year-on-year to Rs 4,428.2 crore. EBITDA rose 4.8% to Rs 4,743.9 crore, with an EBITDA margin of 29.3%.

Organon acquisition update

Sun Pharma signed definitive documents to acquire all outstanding shares of Organon & Co. on April 27, 2026. Organon received shareholders’ approval for the transaction on July 23, 2026.

The company said approvals had been received for the majority of filings, while a few remained pending. Sun Pharma and Organon continue to operate as independent entities until the transaction closes.

An Integration Management Office is working on Day 1 preparedness, with the proposed transaction closure indicated for Q4 FY27.

The acquisition-related costs were recorded during the quarter as Sun Pharma continued work on the proposed transaction.