Last Updated2026-06-02

Market View

₹204.24(▲4.01%)

Reporting PeriodQ4 FY26

SPARCSun Pharma Advanced Research Company Limited Forensic Risk Analysis

Name: Sun Pharma Advanced Research Company Limited Structural Risk Analysis
Creator: Flagium AI
License: https://creativecommons.org/licenses/by-nc-nd/4.0/

Pharmaceuticals

Risk ClassWatch

Market Cap₹4,109 Cr

Primary DriverGovernance

Flagium AI Risk Score

20 / 100

-5 QoQ

Improving

Sentinel Insight

Financial profile remains stable for now. Pressure is receding in governance. This suggests the risk profile is currently stabilizing. Risk levels are improving.

54.5th %ile (Sector)Accel: +0 Qtrs

Updated2026-06-02

Market View

₹204.24▲4.01%

PeriodQ4 FY26

Score Waterfall
Absolute contribution points of each forensic pillar to the final risk score. Derived from: Sector Baseline + Active Penalties - Mitigation Buffers.

Stability Adjustment

+20.0 pts

Final Composite Risk20 / 100

Investment Risk Thesis

Historical Trend

Current risk score has risen from 17 → 20 over 13 quarters.

Expected Direction

🟢 Improving

Primary Deterioration Drivers

Industrial Margin Stress
Working Capital Expansion
Capex Efficiency Stress

What to Watch Next Quarter

Operating profit margins
Operating cash flow
Debt growth

Active Risk Objects (8)

CriticalHigh

Industrial Margin Stress

📊 Earnings QualityAnnualActive for 4 Years

More Detail

Impact Weight12/15

MomentumPersistent

Last SignalQ3 FY2026

SPARC: EBITDA margin compressed by 159.4 bps YoY and Raw material costs consumed an additional 20.0% of revenue YoY.

"Early signs of margin erosion. Input costs are beginning to eat into core profits."

Capex Efficiency Stress

📊 Earnings QualityAnnualActive for 3 Years

More Detail

Impact Weight8/15

MomentumPersistent

Last SignalQ2 FY2026

Aggressive Capex (294.0%) amidst slow revenue growth (-39.0%).

"Early signs of earnings quality decay. Profitability is being driven by non-core items."

Low Interest Coverage

💧 Liquidity & CoverageQuarterlyActive for 11 Qtrs

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Impact Weight8/15

MomentumDecaying

Last SignalQ3 FY2026

SPARC: Low Interest Coverage Ratio of -8.15x in FY2026 Q3 (Threshold: 2.5x).

"The ability to cover interest is strengthening as earnings improve or debt is retired."

Cash Conversion Deficit

📊 Earnings QualityAnnualActive for 3 Years

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Impact Weight6/15

MomentumPersistent

Last SignalFY2026

SPARC: OCF below Net Profit in 3/3 recent years.

"Cash conversion is dangerously low. Operational cash flow is significantly trailing reported PAT."

Negative FCF Streak

⚖️ Governance SignalsAnnualActive for 3 Years

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Impact Weight6/15

MomentumPersistent

Last SignalFY2026

SPARC: Negative Free Cash Flow for last 3 consecutive years.

"High capital expenditure and low OCF are draining cash. Debt levels may rise sharply."

Profit Collapse

📊 Earnings QualityQuarterlyActive for 1 Qtrs

More Detail

Impact Weight8/15

MomentumDecaying

Last SignalQ3 FY2024

SPARC: Net Profit collapsed by 1081.8% from FY2023 Q3 to FY2024 Q3.

"Earnings quality is stabilizing. The reliance on non-operational items is receding."

Revenue-Debt Divergence

🏛️ Solvency & LeverageAnnualActive for 2 Years

More Detail

Impact Weight6/15

MomentumDecaying

Last SignalFY2025

SPARC: Revenue fell 30.0% while Debt rose 449.3% in 2025 vs 2024.

"Debt servicing metrics have improved recently. The company is actively deleveraging."

Working Capital Expansion

💧 Liquidity & CoverageAnnualActive for 1 Years

More Detail

Impact Weight10/15

MomentumDecaying

Last SignalQ4 FY2024

Working capital expansion detected: Receivable days increased by 32.3%.

"Working capital pressure is receding. Cash previously locked in operations is being released."

Risk Trajectory

Loading Chart

Resilience Matrix

Metric	Value	vs Sector	Signal
Volatility (σ)	6.75	7.70	✅ RESILIENT
Sensitivity (ε_s)	1	1.00	✅ RESILIENT
Escalation Prob.	5%	5%	✅ NEUTRAL
Safety Buffer	+46.0	+47.0	📈 CRITICAL

Forensic Benchmark Context: Pharmaceuticals (n=99 peers)

Correlation Analysis
Visualizing the relationship between stock price movement and structural risk objects.

Loading Chart

Share Price

Risk Score (0-100)

Market Performance

₹204.24(+4.01%)

1M Divergence+40.52%

1 Week-13.3%

1 Month+42.79%

6 Months+34.28%

1 Year+2.87%

2 Year-0.78%

3 Year+8.9%

Sector Average (1M)+2.27%

Sentinel Forensic Assessment

ALGORITHMIC RISK PROFILE • NON-ADVISORY

The risk profile is Early Signals and currently improving. Recent structural triggers in governance suggest a building pressure on the underlying framework. Material forensic traces are visible in structural transparency and audit trails, indicating a progressive erosion of structural stability. Initial structural recovery is visible; monitor for a sustained return to resilience.

SPARC • MARKET STRUCTURE

Stage 2 — Advancing

The company is in a growth phase. Institutional sentiment is highly positive, supported by strong fundamentals and sustained risk reduction.

Stage Transition Prob.99%

Trend QualityStrong

Phase Progression

Phase Progression Score85%

Readiness LabelHigh (Phase Transition Imminent)

Probability of Advancing99%

CoinTree Momentum

Composite Z-Score+1.8694σ

Strong positive momentum leadership

Universe Rank#103 of 2716

Top 3.79% in momentum strength

Timeframe Sparklines

1W-13.3%

1M+42.8%

6M+34.3%

Weinstein Indicators

150 DMA₹140.44

200 DMA₹140.03

150 DMA Slope+5.2701%Rising

Relative Strength+39.77%Leading

Relative Turnover (RTR)3.3520

ParticipationHealthy

PEER COMPARISON

Ranked comparison against sector peers

Risk profile is broadly in line with the Sector Mean (19).

Ticker	Risk Score	Sector %ile	Delta	Flags	Accel	Primary Driver
SPARCSun Pharma Advanced Research Company Limited	20	55th	-5	8	+0	GovernanceWatch
AAREYDRUGSAarey Drugs & Pharmaceuticals Limited	23	63th	-5	20	+0	Balance Sheet StressWatch
AARTIPHARMAarti Pharmalabs Limited	35	81th	0	18	+0	Earnings QualityWatch
ALBERTDAVDAlbert David Limited	37	90th	-8	27	+0	Balance Sheet StressWatch