Hello Rohit Kulkarni,
To move data from an SFTP server to Azure SQL Database via Azure Data Factory pipeline, you can use the Copy Activity in Azure Data Factory.
You can find the detailed steps in this document: https://learn.microsoft.com/en-us/azure/data-factory/connector-sftp?tabs=data-factory
For your specific file format, pn_hosp.txt.gz, you can use the GZip compression codec
You can find more details here: https://learn.microsoft.com/en-us/azure/data-factory/supported-file-formats-and-compression-codecs
I hope this helps. Please let me know if you have any further questions.