Lupin (500257) Q3 24/25 earnings summary

Executive summary

• Achieved double-digit revenue and profit growth, with EBITDA margins at a five-year high of 24.3% for Q3 FY25 and strong operational performance across U.S., EMEA, and India.

• India and North America each grew 12% year-over-year, EMEA rose 20.9%-21% year-over-year, while Emerging Markets declined 4.7%-5% in Q3 but grew over nine months.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were approved by the Board on February 11, 2025.

• Statutory auditors conducted a limited review and found no material misstatements in the financial disclosures.

Financial highlights

• Q3 FY25 sales were INR 56,186-57,677.1 million, up 10.6%-11% year-over-year; nine-month sales at INR 166,299-170,407.7 million, up 12.7%.

• EBITDA for Q3 FY25 was INR 13,659 million (24.3% margin), up 33.7% year-over-year; net income for Q3 FY25 was INR 8,552-8,588.6 million, up 39.5% year-over-year.

• Gross margins improved to 69.4% in Q3 FY25 from 66% last year; nine-month gross margin at 69%.

• Net debt reduced to INR 103 crores from INR 477 crores as of March 2024; net debt/equity ratio at 0.01.

• Basic EPS (consolidated) for Q3 FY25 was ₹18.75, up from ₹13.47 in Q3 FY24; nine-month EPS was ₹55.02, up from ₹42.05 year-over-year.

Outlook and guidance

• Confident of maintaining EBITDA margins in the 22%-23.5% range for FY25.

• U.S. business expected to deliver double-digit growth, ahead of earlier high single-digit guidance.

• R&D spend for FY25 guided at INR 1,750-1,800 crores, with a significant increase in Q4.

• Focus on launching key products like tolvaptan, glucagon, Risperdal Consta, and liraglutide in the U.S. in the next fiscal year.

• Targeting best-in-class global quality and regulatory compliance across all sites by FY25.