Lupin (500257) Q2 24/25 earnings summary

Executive summary

• Achieved double-digit revenue growth year-over-year in Q2 FY25, reaching INR 54,970 million, driven by strong commercial execution, new product launches, and robust profitability improvements.

• Net income surged 74% year-over-year to INR 8,526 million, with a margin of 15.5%.

• EBITDA grew 42% year-over-year to INR 13,083 million, with a margin of 23.8%, supported by margin expansion and improved operational efficiency.

• U.S. and India businesses saw strong volume-led growth, with India formulations up 10.9% and outperforming the market.

• Consistent profitability trajectory supported by new launches, regulatory milestones, and global expansion.

Financial highlights

• Q2 FY25 sales reached INR 54,970 million (up 11.3% YoY); H1 sales at INR 110,113 million (up 13.7% YoY).

• Net income for Q2 FY25 was INR 8,526 million (up 74% YoY); EBITDA for Q2 FY25 was INR 13,083 million (up 42% YoY), with margins at 23.8%.

• Gross margin for Q2 FY25 was 69.3%, up from 65.5% in Q2 last year.

• Basic EPS for Q2 FY25 was INR 18.70, up from INR 10.76 in Q2 FY24.

• Employee benefit expenses rose 17% year-over-year, mainly due to increments and ESOP charges.

Outlook and guidance

• Confident of maintaining EBITDA margins in the 22%-23% range for the fiscal year, with medium-term target at 23%-25%.

• Focus on expanding complex generics and biosimilars, with 20 complex product launches in regulated markets by 2028.

• Gross margins expected to sustain in the 68%-69% range.

• R&D spend projected at INR 1,800 crores for FY25, with continued investments in pipeline expansion and chronic therapies.

• Targeting best-in-class global quality and regulatory compliance across all sites by FY25.