Sun Pharma Advanced Research Co. Ltd. (SPARC) AI Stock Analysis

• Market Cap: ₹40.08B
• Dividend Yield: N/A
• Average Volume (3M): 24.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.78
• Revenue Growth: -0.82%
• EPS Growth: 34.67%
• Country: IN
• Employees: 409
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -2.48
• Shares Outstanding: 324,521,580
• 10 Day Avg. Volume: 27,089
• 30 Day Avg. Volume: 24,005
• PEG Ratio: 1.20
• Price to Book (P/B): -21.89
• Price to Sales (P/S): 66.17
• P/FCF Ratio: -12.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: ₹120.00 ▼(-11.57% Downside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

Sun Pharma Advanced Research Co. Ltd. faces significant financial challenges, with persistent profitability and cash flow issues, compounded by a weak balance sheet. The technical analysis indicates bullish momentum, but the high RSI suggests potential for a pullback. Valuation metrics are weak due to negative profitability and lack of dividends. Overall, the stock score reflects substantial financial risks and valuation concerns, with technical momentum providing some positive offset.

Positive Factors

Focused R&D pipeline

SPARC's core business is novel and specialty drug R&D, a durable strategic asset. A focus on new chemical entities and differentiated formulations creates high-value, scalable assets that can generate milestone and royalty streams over years, supporting long-term upside if clinical progress continues.

Partnership / out-licensing model

A partnership-led commercial model reduces capital intensity and shifts late-stage development and commercialization risk to partners. Milestones and royalties provide scalable, non-dilutive revenue potential over time and allow SPARC to monetize successful assets without large marketing investments.

Improving EPS trend

A positive EPS growth rate indicates recent operational leverage or one-time improvements that reduced losses. If sustained, rising EPS can reflect improving cost structure or higher-margin activities, which supports future profitability and strengthens negotiating leverage with partners.

Negative Factors

Weak balance sheet

Negative equity and high leverage are structural constraints: they limit borrowing capacity, raise refinancing risk, and can deter partners or investors. For an R&D firm that needs capital for trials, this weak capital structure materially increases insolvency and funding risk over months.

Persistent negative cash flow

Sustained negative operating and free cash flows mean the company cannot self-fund development. This forces recurring external financing or asset sales, diluting shareholders or delaying programs. Over the medium term, it constrains runway and the ability to progress clinical programs reliably.

Ongoing losses and declining revenue

Recurrent negative EBIT/net income and recent revenue decline signal structural operational issues and inconsistent commercialization. Continued losses increase cash burn and make it harder to attract favorable licensing terms, hampering long-term sustainability and growth prospects.

Sun Pharma Advanced Research Co. Ltd. Business Overview & Revenue Model

Company Description

Sun Pharma Advanced Research Company Limited, a biopharmaceutical company, engages in the research and development of pharmaceutical products in India and internationally. It develops new chemical and biological entities, and reformulated products with a therapeutic focus on oncology, neurodegeneration, ophthalmology, and dermatology. The company offers Elepsia, a formulation of levetiracetam that is an anti-epileptic agent to treat epilepsy disorder; and Xelpros, a latanoprost ophthalmic emulsion for the treatment of open-angle glaucoma or ocular hypertension. In addition, it is developing SDN-037, a formulation of difluprednate for the treatment of inflammation and pain associated with ocular surgery that is in phase 3 clinical trial; PDP-716 to treat glaucoma, which is in phase 3 clinical trial; phenobarbital sodium for the treatment of neonatal seizures; Vodobatinib (SCO-088) for the treatment of resistant chronic myelogenous leukemia that has completed a part A of the Phase 1 study; Vodobatinib (SCC-138), which is in phase 2 clinical trial to treat Parkinson's disease; SCD-044 for the treatment of psoriasis and atopic dermatitis that is in phase 2 clinical trial; and SCO-120 for the treatment of hormone receptor-positive, human epidermal receptor 2 negative, and metastatic breast cancer, which is in phase 1 clinical trial. Sun Pharma Advanced Research Company Limited has a collaboration agreement with Bioprojet SCR to develop an S1P receptor 1 agonist for autoimmune disorders; and HitGen Ltd. to identify small molecule leads for targets of interest. The company was incorporated in 2006 and is based in Mumbai, India. Sun Pharma Advanced Research Company Limited is a subsidiary of Shanghvi Finance Private Limited

How the Company Makes Money

SPARC generates revenue through several key streams, primarily from the sale of proprietary pharmaceutical products developed through its extensive research initiatives. The company earns income from licensing agreements and collaborations with larger pharmaceutical firms for the commercialization of its innovative products. Additionally, SPARC engages in research partnerships and contract development services, providing its expertise and resources to support other companies in their drug development processes. The strategic partnerships with global pharmaceutical companies also contribute to its revenue, as they often involve milestone payments and royalties on product sales. Overall, SPARC's revenue model is built on its capacity to innovate, develop, and monetize its research outcomes effectively.

Sun Pharma Advanced Research Co. Ltd. Financial Statement Overview

Summary

Sun Pharma Advanced Research Co. Ltd. exhibits significant financial challenges, with persistent profitability and cash flow issues, compounded by a weak balance sheet. Negative equity and high leverage highlight financial risks, while inconsistent revenue and profitability metrics reflect operational volatility. The overall financial health of the company is concerning, with substantial improvements needed to address ongoing issues in profitability, liquidity, and financial stability.

Income Statement

Sun Pharma Advanced Research Co. Ltd. has experienced persistently negative EBIT and net income over the years, indicating significant profitability challenges. The gross profit margin is also volatile, with recent improvements not sufficient to offset historical losses. Revenue growth has been inconsistent, with declines in recent periods highlighting operational difficulties. Overall, the income statement reflects substantial profitability issues and inconsistent revenue performance.

Balance Sheet

The company's balance sheet shows a concerning financial structure with negative stockholders' equity, indicating potential insolvency risks. The debt-to-equity ratio cannot be calculated due to negative equity, but high levels of total debt relative to assets demonstrate significant leverage. Assets have decreased over time, suggesting potential liquidity constraints. Overall, the balance sheet highlights critical leverage and equity challenges, posing risks to financial stability.

Cash Flow

Sun Pharma Advanced Research Co. Ltd. has faced negative operating and free cash flows consistently, indicating cash constraints and operational inefficiencies. There is a lack of positive cash flow from operations, leading to reliance on external financing. Despite some improvements in cash management, the persistent negative free cash flow underscores ongoing cash flow challenges, affecting the company's ability to sustain operations without additional funding.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	646.00M	717.70M	755.45M	2.39B	1.37B	2.53B
Gross Profit	927.40M	486.50M	-1.24B	821.21M	105.52M	465.55M
EBITDA	-2.72B	-3.23B	-3.73B	-2.03B	-1.80B	-1.30B
Net Income	-2.98B	-3.43B	-3.87B	-2.23B	-2.03B	-1.51B
Balance Sheet
Total Assets	0.00	3.36B	5.15B	8.30B	2.80B	2.30B
Cash, Cash Equivalents and Short-Term Investments	19.64M	19.60M	1.57B	4.07B	128.89M	157.30M
Total Debt	0.00	2.69B	611.51M	156.70M	792.14M	2.36B
Total Liabilities	2.17B	5.52B	3.89B	3.17B	2.49B	3.98B
Stockholders Equity	-2.17B	-2.17B	1.26B	5.13B	312.26M	-1.68B
Cash Flow
Free Cash Flow	0.00	-3.71B	-4.56B	-845.10M	-2.41B	-1.58B
Operating Cash Flow	0.00	-3.60B	-4.29B	-691.20M	-2.08B	-1.52B
Investing Cash Flow	0.00	1.58B	3.92B	-5.48B	-291.67M	15.62M
Financing Cash Flow	0.00	1.99B	424.05M	6.17B	2.29B	1.59B

Sun Pharma Advanced Research Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 135.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SPARC, the sentiment is Negative. The current price of 135.7 is above the 20-day moving average (MA) of 131.83, above the 50-day MA of 132.50, and below the 200-day MA of 143.31, indicating a bearish trend. The MACD of -2.34 indicates Positive momentum. The RSI at 36.80 is Neutral, neither overbought nor oversold. The STOCH value of 24.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SPARC.

Sun Pharma Advanced Research Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPGLIFE	76 Outperform	₹29.94B	43.39	―	0.85%	―	―
SUPRIYA	75 Outperform	₹49.85B	30.45	―	0.13%	14.35%	15.79%
THYROCARE	69 Neutral	₹61.32B	61.22	―	0.68%	22.36%	52.00%
AARTIDRUGS	57 Neutral	₹32.82B	23.17	―	0.24%	4.08%	31.52%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SPARC	44 Neutral	₹40.08B	-13.56	―	―	-0.82%	34.67%
SUVEN	43 Neutral	₹33.02B	-9.14	―	―	―	―

Sun Pharma Advanced Research Co. Ltd. Corporate Events

SPARC EGM Clears Path for Promoter-Backed Preferential Issue

Sun Pharma Advanced Research Company Ltd. informed exchanges about the conduct of its Extraordinary General Meeting on 9 February 2026, held via video conferencing with full board attendance and requisite quorum. Shareholders were provided remote and electronic voting facilities, relevant documentation for inspection, and an opportunity to question management on the meeting’s agenda.

The key business item placed before shareholders was a special resolution to approve the issue of convertible warrants on a preferential basis to a member of the company’s promoter group. This proposed capital raise, backed by valuation and compliance certifications and in-principle approval applications to NSE and BSE, signals a move to strengthen the company’s funding and promoter support, with implications for ownership structure and future growth plans.

SPARC Board Clears Q3 and Nine-Month FY26 Results After Clean Auditor Review

Sun Pharma Advanced Research Company Limited announced that its board has approved the unaudited standalone and consolidated financial results for the third quarter and nine months ended December 31, 2025, at a meeting held on February 9, 2026. The results, reviewed by the statutory auditors with no material misstatements noted, have been filed with the stock exchanges and published on the company’s website, reinforcing regulatory compliance and financial disclosure transparency.

An independent limited review by S R B C & CO LLP confirmed that the interim financial statements comply with Indian Accounting Standards and SEBI listing requirements, without raising any qualifications. The timely completion of the board meeting and clean review report support SPARC’s governance standards and provide investors and other stakeholders with moderated assurance on the company’s interim financial performance and reporting quality.

Exchange Seeks Clarification After Surge in Sun Pharma Advanced Research Trading Volume

Trading in Sun Pharma Advanced Research Company Limited shares has seen a significant increase in volume, prompting the stock exchange to seek clarification from the company. The exchange has requested updated, relevant information to ensure market transparency and protect investor interests, and the market is awaiting the company’s response, which could clarify the reasons behind the unusual trading activity and its implications for shareholders.

Sun Pharma Advanced Research Publishes EGM Notice in Line with SEBI Disclosure Norms

Sun Pharma Advanced Research Company Limited has notified stock exchanges that it has published public notices convening an Extra Ordinary General Meeting (EGM) of shareholders through advertisements in multiple editions of the Financial Express in English and Gujarati. The company states that the advertisements follow the emailing of the EGM notice to shareholders whose email addresses are on record, and that these steps are in line with disclosure and publication requirements under SEBI’s Listing Obligations and Disclosure Requirements Regulations, underscoring SPARC’s adherence to regulatory norms and transparency in shareholder communication.

SPARC Calls February EGM to Approve Preferential Issue of Convertible Warrants

Sun Pharma Advanced Research Company Limited has called an extraordinary general meeting (EGM) of its shareholders on 9 February 2026, to be held via video conferencing, with remote e-voting scheduled between 5 and 8 February 2026. The key agenda item is a special resolution to approve the issue of convertible warrants on a preferential basis to a member of the company’s promoter group, a move that, if approved, would strengthen the company’s capital base, potentially increase promoter stake, and support future funding needs for its research-driven growth strategy, while also requiring compliance with a range of Indian corporate, securities, and foreign exchange regulations.