Lupin (500257) Q2 24/25 earnings summary

Executive summary

• Achieved double-digit revenue and net income growth in Q2 FY25, with sales of ₹54,970 million (up 11% year-over-year) and net income of ₹8,526 million (up 74% year-over-year), driven by strong India, EMEA, and U.S. performance and new product launches.

• EBITDA rose 42% year-over-year to ₹13,083 million, with margin improving to 23.8%, supported by cost optimization and commercial execution.

• Maintained leadership in chronic therapies and complex generics, with a robust pipeline and continued investments in R&D and digital healthcare.

• Launched key products including generic Mirabegron, Doxorubicin HCL Liposome, and completed Phase 3 trials for Ranibizumab biosimilar.

• Final dividend of ₹8 per share disbursed in August 2024, totaling ₹3,647.7 million.

Financial highlights

• Q2 FY25 net sales: ₹54,970 million (up 11.3% year-over-year); H1 FY25 net sales: ₹110,113 million (up 13.7% year-over-year).

• Net income for Q2 FY25 was ₹8,526 million (up 74% year-over-year); H1 FY25 net income: ₹16,539 million (up 75.6% year-over-year).

• Gross margin for Q2 FY25 was 69.3%, up from 65.5% in Q2 FY24.

• EBITDA (excluding Forex and other income) was ₹13,083 million, up 42% year-over-year, with margins at 23.8%.

• R&D spend at ₹3,764 million (6.3% of sales); capex at ₹1,117 million (2.0% of sales) in Q2 FY25.

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 chronic therapies, biosimilars, and complex generics, with 20 complex product launches and 3 biosimilar filings targeted by 2028.

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

• R&D spend projected at ₹18,000 million for FY25, with emphasis on complex generics.

• Continued investments in R&D and digital healthcare platforms to drive future growth.