CRISIL and ICRA assign AAA ratings to Sun Pharma’s proposed NCDs, factoring in the planned Organon acquisition

Sun Pharmaceutical Industries Limited has told the exchanges that CRISIL Ratings and ICRA have assigned ratings to its proposed non-convertible debenture (NCD) programme and reaffirmed the ratings on its existing facilities. CRISIL has assigned Crisil AAA/Stable to ₹15,000 crore of proposed NCDs and reaffirmed Crisil A1+ on ₹4,000 crore of commercial paper and Crisil AAA/Stable/Crisil A1+ on ₹176 crore of bank facilities. ICRA has assigned [ICRA]AAA (Stable) to the proposed NCDs and reaffirmed [ICRA]A1+ on commercial paper and [ICRA]AAA (Stable)/[ICRA]A1+ on its long-term and short-term limits.

ICRA has also reaffirmed [ICRA]A1+ on short-term facilities of ₹150 crore of Sun Pharma Laboratories Limited, a wholly owned subsidiary. The filing, dated 13 Oct 2026, says the ratings reflect the company's strong business and financial profile and also take into account its proposed acquisition of Organon & Co.

According to CRISIL's rationale, Sun Pharma announced the acquisition of the US-based Organon on 27 Apr 2026 at an enterprise value of $11.75 billion, with completion expected over late 2026 and early 2027 subject to regulatory approvals. CRISIL expects leverage to rise after the deal, which includes taking over Organon's existing debt of about $8.5 billion.

CRISIL also notes that in the first quarter of FY2027 Sun Pharma's operating income rose about 10% to ₹15,300 crore, with India formulations sales up 16% to ₹5,475 crore and US formulations sales down 10%. Operating margin moderated to 29% from 31.1%.

Inference

The ratings are for debentures that are proposed, not yet issued, so the filing does not mean the company has raised the money. A rating on a proposed programme lets the company issue debt within the rated amount when it decides to.

AAA is the highest long-term rating on both agencies' scales. For shareholders, the filing shows both agencies keeping their top ratings while taking the planned acquisition into account, and CRISIL states that leverage is expected to rise. The deal's completion, financing and integration are the points the agencies themselves flag, and investors may want to follow them in later announcements.