Lupin (500257) Q1 24/25 earnings summary

Executive summary

• Achieved strong double-digit revenue and margin growth in Q1 FY25, with consolidated revenue at ₹56,003.3 million, up 16% year-over-year and 12.6% sequentially, and EBITDA margin at 23.3%, driven by new launches, operational improvements, and lower R&D spend.

• Net profit after tax surged to ₹8,013.1 million, a 14.5% margin, up 77% year-over-year and 123% sequentially.

• Consistent improvement in profitability, supported by strong execution across geographies and segments.

• Positive regulatory outcomes and successful inspections at multiple manufacturing sites.

Financial highlights

• Q1 FY25 sales reached ₹56,003.3 million, up 16% year-over-year; gross margin improved to 68.4% from 63.8% (ex-NCE) last year, driven by better product mix and cost efficiencies.

• EBITDA at ₹12,864 million (23.3% margin), up 50% year-over-year and 29% sequentially.

• Net income at ₹8,013 million (14.5% margin), up 77% year-over-year and 123% sequentially.

• R&D spend at ₹3,567 million (6.3% of sales); employee expenses rose 15% year-over-year, now 17.6% of sales.

• US business sales at $227 million, up 25% year-over-year and 8% sequentially (constant currency).

Outlook and guidance

• US business expected to grow at high single digits in FY25, with further ramp-up from new launches and complex generics.

• R&D spend projected at ₹1,800 crore for FY25, focusing on complex generics, respiratory, and injectables.

• Poised to launch ~20 new products in India in FY25 and targeting 20 complex launches and 3 biosimilar filings in regulated markets by 2028.

• Confident in maintaining gross margins around current levels barring unforeseen events.

• Strategic growth drivers and robust pipeline expected to sustain top-line and EBITDA growth beyond FY25.