SPARC Swings to Massive Profit in FY26 on Back of USD 195 Million Priority Review Voucher Sale

Sun Pharma Advanced Research Company Limited reported a landmark financial turnaround for the year ended March 31, 2026, swinging from a deep loss to a substantial profit on both standalone and consolidated bases. The Board of Directors, at its meeting held on May 18, 2026, approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The statutory auditors, S R B C & C O L L P, issued an unmodified opinion on the financial results.

Priority Review Voucher Drives Extraordinary Revenue

The defining event of FY26 was the recognition of income of ₹1,84,002 lakhs as other operating revenue in respect of a Priority Review Voucher (PRV) granted by the United States Food and Drug Administration (USFDA) on February 03, 2026, for Sezaby®. The PRV, being a transferable instrument, was subsequently sold on April 30, 2026, for USD 195 million. The PRV has been accounted as a non-monetary government grant under Ind AS 20, and its fair value has been recognised in the Statement of Profit and Loss. This single item was instrumental in transforming the company's financial profile for the year.

Standalone Financial Performance

The standalone financial results reflect a sharp reversal from the prior year's losses. The following table summarises the key standalone income statement metrics:

Metric: Q4 FY26 (31.03.2026) Audited Q3 FY26 (31.12.2025) Unaudited Q4 FY25 (31.03.2025) Audited FY26 (Year Ended 31.03.2026) Audited FY25 (Year Ended 31.03.2025) Audited Revenue from Contracts with Customers (₹ Lakhs): 1,320 845 2,719 3,915 7,177 Other Operating Revenue (₹ Lakhs): 1,84,002 — — 1,84,002 — Total Revenue from Operations (₹ Lakhs): 1,85,322 845 2,719 1,87,917 7,177 Other Income (₹ Lakhs): 180 — — 1,083 179 Total Income (₹ Lakhs): 1,85,502 845 2,719 1,89,000 7,356 Total Expenses (₹ Lakhs): 9,432 7,666 8,817 32,551 41,878 Profit/(Loss) Before Exceptional Item and Tax (₹ Lakhs): 1,76,070 (6,821) (6,098) 1,56,449 (34,522) Exceptional Item (₹ Lakhs): — 1,236 — 1,236 — Profit/(Loss) Before Tax (₹ Lakhs): 1,76,070 (8,057) (6,098) 1,55,213 (34,522) Profit/(Loss) for the Period (₹ Lakhs): 1,76,070 (8,057) (6,098) 1,55,213 (34,522) Total Comprehensive Profit/(Loss) (₹ Lakhs): 1,76,177 (7,944) (6,137) 1,55,420 (34,547) Basic & Diluted EPS (₹): 54.26 (2.48) (1.88) 47.83 (10.64)

Total standalone expenses for FY26 declined to ₹32,551 lakhs from ₹41,878 lakhs in FY25, reflecting lower clinical trial expenses (₹2,266 lakhs vs ₹8,133 lakhs) and professional charges (₹8,753 lakhs vs ₹14,126 lakhs). An exceptional item of ₹1,236 lakhs was recognised during the quarter ended December 31, 2025, relating to incremental costs arising from the implementation of the New Labour Codes effective November 21, 2025.

Standalone Balance Sheet Highlights

The standalone balance sheet as at March 31, 2026 reflects a significant improvement in the equity position, driven by the year's profitability.

Parameter: As at 31.03.2026 (₹ Lakhs) As at 31.03.2025 (₹ Lakhs) Total Assets: 2,16,798 32,929 Total Non-Current Assets: 30,660 30,402 Total Current Assets: 1,86,138 2,527 Equity Share Capital: 3,245 3,245 Other Equity: 1,30,113 (25,307) Total Equity: 1,33,358 (22,062) Total Non-Current Liabilities: 7,758 17,618 Total Current Liabilities: 75,682 37,373 Total Liabilities: 83,440 54,991

Other current assets surged to ₹1,84,575 lakhs as at March 31, 2026 from ₹550 lakhs a year earlier, primarily reflecting the PRV-related receivable. Total equity turned strongly positive at ₹1,33,358 lakhs compared to a negative ₹22,062 lakhs as at March 31, 2025.

Consolidated Financial Performance

The consolidated results encompass Sun Pharma Advanced Research Company Limited and its wholly owned subsidiaries, SPARCLIFE, Inc. and Genokine Biotech Limited. The consolidated performance closely mirrors the standalone results given the minimal contribution from subsidiaries.

Metric: Q4 FY26 (31.03.2026) Audited Q3 FY26 (31.12.2025) Unaudited Q4 FY25 (31.03.2025) Audited FY26 (Year Ended 31.03.2026) Audited FY25 (Year Ended 31.03.2025) Audited Total Revenue from Operations (₹ Lakhs): 1,85,322 845 2,719 1,87,917 7,177 Total Income (₹ Lakhs): 1,85,502 845 2,719 1,89,012 7,356 Total Expenses (₹ Lakhs): 9,406 7,644 8,786 32,475 41,634 Profit/(Loss) Before Exceptional Item and Tax (₹ Lakhs): 1,76,096 (6,799) (6,067) 1,56,537 (34,278) Profit/(Loss) for the Period (₹ Lakhs): 1,76,134 (8,042) (5,977) 1,55,320 (34,251) Total Comprehensive Profit/(Loss) (₹ Lakhs): 1,76,269 (7,923) (6,016) 1,55,577 (34,270) Basic & Diluted EPS (₹): 54.27 (2.48) (1.84) 47.86 (10.55)

Consolidated total assets stood at ₹2,17,086 lakhs as at March 31, 2026, compared to ₹33,553 lakhs a year earlier. Total consolidated equity improved to ₹1,33,882 lakhs from a negative ₹21,695 lakhs. The Group's only reportable business segment is 'Pharmaceutical Research and Development'.

Cash Flow Overview

On a standalone basis, net cash used in operating activities was ₹23,889 lakhs for FY26, compared to ₹36,241 lakhs in FY25. Net cash used in investing activities was ₹2,351 lakhs, while net cash generated from financing activities was ₹26,153 lakhs, with proceeds from borrowings of ₹2,11,581 lakhs and repayments of ₹1,81,785 lakhs. Standalone cash and cash equivalents at the end of the year stood at ₹32 lakhs. On a consolidated basis, cash and cash equivalents at the end of the year were ₹116 lakhs, compared to ₹196 lakhs at the beginning of the year.

Sun Pharma Advanced Research Company Ltd. (SPARC) announced that it has entered into a definitive asset purchase agreement to sell its Rare Paediatric Disease Priority Review Voucher (PRV) for US $195 million upon the closing of the transaction. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Official Regulatory Filing

The company filed the official disclosure with the National Stock Exchange of India Ltd. and BSE Limited through a formal communication dated April 30, 2026. The filing reference SPARC/Sec/SE/2026-27/05 was signed by Kajal Damania, Company Secretary and Compliance Officer.

Filing Details: Information Reference Number: SPARC/Sec/SE/2026-27/05 Filing Date: April 30, 2026 NSE Symbol: SPARC BSE Code: 532872 Regulation: SEBI LODR Regulation 30

Transaction Overview

The PRV was granted by the U.S. Food and Drug Administration (FDA) for the approval of Sezaby®, which is indicated for the treatment of neonatal seizures. SEZABY® is a benzyl alcohol and propylene glycol free formulation of phenobarbital sodium powder for injection.

Parameter: Details Transaction Value: US $195 million Asset Type: Rare Paediatric Disease Priority Review Voucher Related Product: Sezaby® (phenobarbital sodium) Indication: Neonatal seizures treatment Regulatory Authority: U.S. Food and Drug Administration

Strategic Impact

Anil Raghavan, CEO of SPARC, stated that the sale of the PRV will enable the company to accelerate the development of its pipeline assets and strengthen its external innovation strategy, which has already delivered multiple additions to its portfolio.

The transaction is subject to customary closing conditions, including the expiration of the applicable waiting period under the Hart-Scott Rodino (HSR) Antitrust Improvements Act. Stifel acted as the exclusive financial advisor to SPARC with respect to this transaction.

Regulatory Compliance Details

As per the SEBI disclosure requirements, the transaction details confirm this is not a related party transaction and the company holds no shareholding in the counterparty.

Compliance Particulars: Details Purpose: Sale of Priority Review Voucher (PRV) Agreement Size: US $195 million Shareholding in counterparty: Nil Related party transaction: No Promoter group connection: No

About Sun Pharma Advanced Research

Sun Pharma Advanced Research Company Ltd. is a pharmaceutical company focused on continuously improving standards of care for patients globally through innovation in therapeutics and delivery. The company consistently aims to lower costs and improve operational efficiencies to advance availability and affordability of cures for patients across the world.

Source: None/Company/INE232I01014/9dee41b62db44ca0.pdf

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