Lincoln Pharmaceuticals (531633) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue reached INR 166.32 crore, up 13.49% year-over-year, with net profit rising 37.70% to INR 28.60 crore.

• EBITDA for Q3 FY26 was INR 38.74 crore, up 18.73% year-over-year.

• EPS for Q3 FY26 was 14.28, up 37.70% year-over-year.

• Management targets 12%-18% annual growth and aims for INR 1,000 crore revenue by FY28, expanding into regulated and niche markets.

• CRISIL reaffirmed its 'CRISIL A/Stable/CRISIL A1' ratings, reflecting strong industry experience and a healthy financial profile.

Financial highlights

• Nine-month EPS is 38.07, compared to 41.11 for the full previous year; 9MFY26 net profit increased 7.76% to INR 76.26 crore.

• Cephalosporin block revenue expected to reach INR 45 crore this year, with INR 32-34 crore already achieved.

• Other income includes forex gains and investment returns, contributing significantly to EBIT.

• R&D expenses currently 1.8%-2% of revenue, targeted to rise to 3%-3.25%.

• The company maintains a debt-free balance sheet.

Outlook and guidance

• Long-term revenue target of INR 1,000 crore by FY28, with a possible delay of up to six months.

• EBITDA margin guidance remains at 15%-18%, with potential for further expansion.

• Management expects continued growth from both domestic and export markets, with a future mix of 60/40 or 65/35 (exports/domestic).

• Focus remains on expanding presence in regulated and semi-regulated markets, with plans to increase export footprint from 60+ to 90 countries.

• R&D pipeline includes over 100 new development programs and 700 products in development.