Lupin (500257) Q4 24/25 earnings summary

Executive summary

• Achieved $2.7 billion in revenue and $625 million in EBITDA for FY2025, ranking as the 12th largest generic company globally and 3rd in the US by prescriptions, with strong double-digit growth across all major markets and segments.

• Maintained leadership positions in key markets: #3 by prescriptions in the US, #8 in India, #4 in Australia, and #8 in South Africa, with operations in over 100 countries and 15 manufacturing sites.

• Focused on complex generics, specialty products, and expansion in inhalation, injectables, and biosimilars, supported by enhanced R&D capabilities with 453 ANDAs, 157 NDAs, and 848 US DMF filings.

• Significant progress in ESG initiatives, compliance, operational efficiency, and shareholder value over the last five years.

• Audited standalone and consolidated financial results for FY25 were approved, with a recommended dividend of ₹12 per equity share pending AGM approval.

Financial highlights

• FY25 consolidated revenue was ₹227,079 million, up from ₹200,108 million year-over-year; EBITDA at INR 52,775 million, up 38.9% year-over-year, and net income at INR 32,816 million, a 71.4% increase year-over-year.

• Gross margin improved to 69.2% in FY25 from 66.2% in FY24; EBITDA margin at 23.8%, and net income margin at 14.8%.

• Net debt reduced to virtually zero; company is now cash surplus, with cash and cash equivalents (consolidated) at ₹15,436.9 million as of March 31, 2025.

• ROCE improved to 22% in FY25, up from 10% five years ago.

• Free cash flow for the year at INR 13.3 billion after capex and M&A.

Outlook and guidance

• Expect continued double-digit growth in India, driven by new product launches, sales force expansion, and chronic therapy focus, with 100+ new product launches planned by FY30.

• US business to remain strong, with first-half FY2026 front-loaded due to Tolvaptan, followed by injectables in the second half.

• Margins expected to rise further as complex generics and cost efficiencies increase; R&D spend to grow 10-15% next year, mainly on complex products.

• Adjacencies (diagnostics, OTC, digital health, CDMO) expected to turn profitable and contribute to margins in coming years.

• Multiple business transfers and restructuring initiatives, including the transfer of OTC and API R&D businesses, are expected by June 30, 2025.