Lupin (500257) Q4 24/25 earnings summary

Executive summary

• Achieved $2.7 billion in revenue and $625 million in EBITDA for FY2025, ranking as the 12th largest generic company globally and 3rd in the US by prescriptions.

• Maintained leadership in key markets: #3 by prescriptions in the US, #8 in India, #4 in Australia, #8 in South Africa, with operations in over 100 countries and 15 manufacturing sites.

• Focused on complex generics, specialty products, and expansion in inhalation, injectables, and biosimilars, supported by enhanced R&D capabilities.

• Significant progress in ESG, compliance, operational efficiency, and shareholder value over the last five years.

• Audited standalone and consolidated financial results for FY25 were approved, with a recommended dividend of ₹12 per equity share pending AGM approval.

Financial highlights

• FY25 consolidated revenue was ₹227,079 million, up from ₹200,108 million; EBITDA at INR 52,775 million, up 38.9% year-over-year; EBITDA margin improved to 23.8%.

• Gross margin improved to 69.2% in FY25 from 66.2% in FY24; ROC/ROCE increased to 21.6% in FY25 from 9.9% in FY20.

• Net income for FY25 was INR 32,816 million, a 71.4% increase year-over-year; consolidated net profit was ₹33,062.6 million, up from ₹19,355.7 million.

• Free cash flow improved to INR 13.3 billion in FY25; net debt reduced to zero; cash and cash equivalents rose to ₹15,436.9 million.

• Standalone EPS for FY25 was ₹87.10 (basic), up from ₹51.10; consolidated EPS was ₹71.95, up from ₹42.05.

Outlook and guidance

• Targeting continued revenue and margin growth, driven by a robust pipeline, cost optimization, and 100+ new product launches by FY30.

• Margins projected to rise by at least 1 percentage point in the coming year; R&D spend to increase 10-15%, focused on complex generics, biosimilars, and specialty products.

• India business targeted to grow at double-digit rates, 1.2–1.3x the Indian Pharma Market, focusing on chronic therapies and innovation.

• Multiple business transfers and restructuring initiatives, including OTC and API R&D, expected by June 30, 2025.