Lupin (500257) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly consolidated revenue of ₹70,475.1 million (INR 7,048 crores), with EBITDA of ₹21,376 million and margin of 31.3%, marking 13 consecutive quarters of YoY growth.

• Net income increased 73% YoY to ₹14,848.3 million, with margin at 21.6%.

• Growth was broad-based across North America, LATAM, EMEA, and emerging markets, with U.S. business showing exceptional performance aided by exclusivity for Tolvaptan and new launches.

• Significant progress in complex injectables, biosimilars, and specialty launches, including first Indian approval for generic Victoza and US launches of Liraglutide and Glucagon injectables.

• Unaudited financials for Q2 FY26 were approved by the Board, with no material misstatements found by statutory auditors.

Financial highlights

• Revenue grew 24% YoY; U.S. up 47%, India up 3.4%, other developed markets up 19%, and emerging markets up 45%.

• Gross profit for Q2 FY26 was ₹50,066 million, up 31.5% YoY; gross margin improved to 73.3% from 69.3% YoY.

• EBITDA margin expanded to 31.3% from 23.8% YoY; net income margin rose to 21.6% from 15.5% YoY.

• Net cash position improved to ₹16,650 million from ₹3,100 million at March-end; net debt to equity remained low at 0.02.

• Return on capital at 25% as of Q2 FY26.

Outlook and guidance

• Full-year EBITDA margin guidance raised to 25%-26% from earlier 24%-25%.

• Plans to file 15+ products in FY26 in the US, with two-thirds in complex generics; targeting 100+ new launches and 65%+ of launch revenue from complex products by FY31.

• Expect to sustain billion-dollar-plus U.S. sales into FY 2027, despite some erosion from Tolvaptan exclusivity ending.

• Double-digit constant currency growth expected across key markets, with Europe and emerging markets projected to outpace company average.

• R&D spend to remain at 7.5%-8.5% of sales.