Lupin (500257) Q4 25/26 earnings summary

Executive summary

• Achieved record sales and profitability in Q4 and FY 2026, marking 15 consecutive quarters of year-over-year growth, with strong performance in North America, India, and emerging markets.

• U.S. business reached $1.3 billion in sales, up nearly 40% year-over-year, driven by new product launches and strong base business volumes.

• India prescription business grew 14.5% in Q4, outpacing the Indian Pharmaceutical Market (IPM) growth.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, were approved, with a recommended dividend of ₹18 per equity share, subject to AGM approval.

• Growth was broad-based across geographies, with notable launches, regulatory approvals, and significant one-time items impacting results.

Financial highlights

• Q4 revenue from operations grew 32% year-on-year to INR 7,475 crores; EBITDA up 68% to INR 2,171 crores; net income rose 89% year-over-year to INR 14,604 mn.

• FY 2026 consolidated revenue reached INR 279,580.3 million, up from INR 227,079.0 million; EBITDA up 55% to INR 8,160 crores.

• EBITDA margin for FY 2026 at 29.7%, up 590 bps year-over-year, exceeding margin guidance.

• Gross margin improved to 75.0% for Q4 FY26, up from 69.7% YoY.

• Net cash position at INR 4,636 crores as of March 31, 2026, up from INR 310 crores last year; cash and cash equivalents (consolidated) at year-end were ₹41,677.3 million.

Outlook and guidance

• FY 2027 guidance: high single-digit revenue growth in rupee terms and EBITDA margin around 25%.

• Plans to launch 20+ products in India and 15+ ANDAs in the US in FY27, with 5+ biosimilar launches and 100+ new US launches by FY31.

• Guidance factors in increased competition for key products and higher R&D spend, with effective tax rate projected at 25-26%.

• Management continues to monitor regulatory and legal developments, including labor code changes and ongoing litigation.