SPARC Reports Q3 FY26 Net Loss of ₹80.57 Crores, Revenue Drops to ₹8.45 Crores
Sun Pharma Advanced Research Company Limited reported a consolidated net loss of ₹80.42 crores for Q3 FY26, with revenue declining 43.30% to ₹8.45 crores compared to the previous year. The company recognized exceptional costs of ₹12.36 crores related to new Indian labour codes. For nine months FY26, losses reduced to ₹208.14 crores from ₹282.74 crores, though revenue dropped significantly. The company received a US FDA Priority Review Voucher for Sezaby® and maintains going concern status with promoter support.
*this image is generated using AI for illustrative purposes only.
Sun Pharma Advanced Research Company Limited (SPARC) announced its unaudited standalone and consolidated financial results for the third quarter ended December 31, 2025, showing continued losses amid declining revenue. The Board of Directors approved these results at their meeting held on February 09, 2026.
Financial Performance Overview
The company reported significant financial challenges during the quarter, with both standalone and consolidated operations showing substantial losses.
| Metric (₹ Crores): | Q3 FY26 | Q3 FY25 | Change |
|---|---|---|---|
| Revenue from Operations: | 8.45 | 14.91 | -43.30% |
| Total Income: | 8.45 | 15.10 | -44.04% |
| Net Loss (Standalone): | 80.57 | 79.71 | -1.08% |
| Net Loss (Consolidated): | 80.42 | 79.51 | -1.15% |
| Loss Per Share (₹): | 2.48 | 2.46 | -0.81% |
Nine-Month Performance Analysis
For the nine months ended December 31, 2025, SPARC's financial performance showed mixed results with reduced losses but lower revenue.
| Parameter (₹ Crores): | 9M FY26 | 9M FY25 | Variance |
|---|---|---|---|
| Revenue from Operations: | 25.95 | 44.56 | -41.77% |
| Total Income: | 35.10 | 46.37 | -24.31% |
| Net Loss (Consolidated): | 208.14 | 282.74 | +26.38% |
| Loss Per Share (₹): | 6.41 | 8.71 | +26.41% |
Exceptional Items and Regulatory Impact
The company recognized an exceptional item of ₹12.36 crores during Q3 FY26 related to India's new labour codes. The Government of India consolidated 29 existing labour legislations into four unified codes: Code on Wages 2019, Code on Social Security 2020, Industrial Relations Code 2020, and Occupational Safety, Health and Working Conditions Code 2020. These codes became effective from November 21, 2025, introducing changes including uniform wage definitions and impacting employee benefits such as gratuity and leave encashment.
Expense Structure
The company's major expense categories for Q3 FY26 included:
- Employee benefits expense: ₹26.90 crores (standalone)
- Professional charges: ₹15.95 crores (standalone)
- Cost of materials consumed: ₹7.21 crores
- Clinical trial expenses: ₹6.27 crores
- Finance costs: ₹6.78 crores
Recent Regulatory Approval
On February 03, 2026, the United States Food and Drug Administration granted a Rare Pediatric Disease Priority Review Voucher (PRV) associated with the approval of Sezaby®. The PRV is a tradeable voucher that can be redeemed for priority review of subsequent drug applications.
Going Concern Status
Despite incurring cash losses in current and past quarters, the company maintains its going concern status based on a support letter from its promoter group entity. SPARC operates in a single reportable business segment of pharmaceutical research and development.
Historical Stock Returns for Sun Pharma Advanced Research Co
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.87% | +9.41% | +1.50% | -1.81% | -13.48% | -27.39% |
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