Lupin (500257) Q3 25/26 earnings summary

Executive summary

• Achieved 14th consecutive quarter of year-over-year growth, with Q3 FY26 consolidated revenue reaching INR 71,675.2 million, up 24%-26% year-on-year, and net income of INR 11,805.1 million, up 37.5%-38% year-on-year.

• Growth was broad-based across U.S., India, Europe, LATAM, and emerging markets, with double-digit year-on-year growth in most regions; North America sales up 62% and LATAM up 70%.

• U.S. business recorded its highest sales ever, driven by new product launches, exclusivity on key generics, and biosimilar approvals.

• Key product launches, regulatory approvals, and strategic partnerships, including exclusive licensing for pegfilgrastim and alliances with Valorum and PolyPeptide, supported performance.

• Board approved unaudited results; statutory auditors found no material misstatements.

Financial highlights

• Q3 FY26 consolidated revenue from operations: INR 71,675.2 million, up from INR 57,677.1 million in Q3 FY25.

• EBITDA for Q3 FY26 was INR 22,095 million, up 61.8% year-on-year, with a margin of 31.1%.

• Net profit after tax for Q3 FY26 was INR 11,805.1 million, up from INR 8,588.6 million in Q3 FY25.

• Gross margin improved to 73.5% from 69.4% in Q3 last year.

• R&D spend was INR 5,430 million in Q3 FY26, representing 7.6% of sales, among the highest in the Indian pharma sector.

Outlook and guidance

• Full-year EBITDA margin expected at 27%-28%, higher than previous guidance of 25%-26%.

• Plans to file 10-15 ANDAs in FY26, including two 505(b)(2) applications, and target 100+ new product launches by FY31.

• U.S. business expected to sustain $1 billion+ revenue level, with multiple new launches in injectables, respiratory, and biosimilars planned.

• India Formulations business expected to outperform IPM by 1.2x-1.3x, supported by a strong pipeline and sales force.

• The company continues to monitor regulatory changes, including new Indian labour codes, and will account for any further impact as per applicable standards.