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Informist, Tuesday, Aug. 5, 2025

By Gopika Balasubramanium

MUMBAI – Lupin Ltd. exceeded the Street's estimates for its bottom line, but missed estimates for the topline by a hair's breadth. The company's robust performance in the quarter was mainly due to a double-digit sales growth in the US, which accounted for 39% of company's total core revenue and benign expenses.  

The company's consolidated net profit for the June quarter rose a whopping 52% on year to INR 12.19 billion. It also came in better than the INR 11.17 billion expected by analysts. Sequentially, the net profit jumped 58%.

The Mumbai-based drugmaker's overall topline, which includes other operating income, saw a near-12% on-year increase and came in at INR 62.68 billion. This was 11% higher from the trailing quarter. Meanwhile, the company's revenue from its core operations rose 12% on year to INR 61.64 billion, but was lower than the analysts' expectations of INR 64.84 billion. Its sales rose 11% on a quarter-on-quarter basis. 

The consolidated earnings before interest, tax, depreciation and amortisation margin expanded 560 basis points on year to 29.3% in the June quarter. Lupin's consolidated EBITDA for the latest quarter rose 38% on year and increased 31% sequentially to INR 18.06 billion.

The drugmaker's total expenses rose 5.5% on year to INR 49.32 billion in Apr-Jun. The rise in total expenses was limited by a drop in cost of materials consumed, which made 23% of overall costs, and also due to gain on foreign currency transactions. Raw material costs fell 1.7% on year to INR 11.27 billion during the quarter. The company gained INR 858.70 million from currency transactions, significantly higher against INR 454 million loss in the year-ago quarter.

However, its employee expenses and other expenses which made major chunk of its total costs rose in double digits. Employee benefit costs rose 11.5% on year to INR 10.83 billion and its other expenses rose 11% on year to INR 17.72 billion.

The total capital expenditure by the company in Apr-Jun stood at INR 2.09 billion. The company made INR-4.84-billion investments toward research and development. This investment accounted for nearly 8% of the company's sales.  

One of the main highlights of Lupin's June quarter earnings was the performance of its US business, which accounted for 39% of the overall sales that posted robust growth despite tariff uncertainties. India formulations sales saw a mid-single digit on-year rise while its sales in other developed markets grew in double digits. However, its active pharmaceutical ingredients sales fell sharply on year in this quarter.

For Apr-Jun, the company's US sales rose 24% on year to INR 24.04 billion. India formulation sales in June quarter rose almost 8% on year to INR 20.89 billion. The company earned INR 7.75 billion as revenue from other developed markets during the quarter. Its revenue from emerging markets rose 5% on year to INR 6.52 billion. Its active pharmaceutical ingredients sales fell 33% on year to INR 2.43 billion.

The company declared its June quarter results post market hours Tuesday. The company's stock closed at INR 1,864.50 on the National Stock Exchange, down 1%.  

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Deepshikha Bhardwaj

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