Lupin (500257) Q3 25/26 earnings summary

Executive summary

• Achieved 14th consecutive quarter of year-on-year growth, with consolidated Q3 FY26 revenue reaching INR 71,675.2 million, up 24%-26% year-on-year, and broad-based double-digit growth across most regions, including the U.S., India, Europe, LATAM, and emerging markets.

• U.S. business delivered highest-ever sales, with North America sales up 46%-62% year-on-year, driven by new product launches (TOLVAPTAN, Risperdal Consta), exclusivity, and strong base business.

• India prescription business grew 10.9% year-on-year, with chronic therapies now 67% of the portfolio and new divisions launched, including one for obesity.

• Key product launches and regulatory approvals in the US and India, including pegfilgrastim biosimilar and gRisperdal Consta®, supported performance.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved by the Board on February 12, 2026.

Financial highlights

• Q3 FY26 consolidated revenue from operations reached INR 71,675.2 million, up from INR 57,677.1 million in Q3 FY25; EBITDA for the quarter was INR 22,095 million, up 61.8% year-on-year, with a margin of 31.1%.

• Net income for Q3 FY26 was INR 11,805.1 million, up 37.5% year-on-year, but down sequentially due to exceptional items.

• Gross margin improved to 73.5% from 69.4% last year, driven by better product mix and lower share of in-licensed products.

• Net cash stood at INR 2,879 crore as of December 31, 2025; net debt to equity remained low at 0.01.

• Basic EPS (consolidated, before exceptional items) for Q3 FY26 was ₹32.97, up from ₹18.75 in Q3 FY25.

Outlook and guidance

• Full-year EBITDA margin expected at 27%-28%, above earlier guidance of 25%-26%.

• U.S. business expected to sustain $1 billion+ revenue with multiple new launches in injectables, biosimilars, and 505(b)(2) products over the next few years.

• India business projected to outperform IPM by 1.2x-1.3x, supported by a strong sales force and robust pipeline.

• R&D spend for the full year guided at 7.5%-8.5% of sales.

• Plans to file 10-15 ANDAs in FY26, including two 505(b)(2) applications, and target 100+ new product launches by FY31.