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Informist, Thursday, May 7, 2026

By Eshitva Prakash

MUMBAI – Lupin Ltd.'s consolidated revenue and net profit surged in the March quarter, comfortably beating the already high expectations set by the Street. The growth in the company's net profit for the quarter was the highest in the financial year 2025–26 (Apr-Mar), aided by depreciation of the rupee. The revenue growth was the sharpest since the June quarter of FY17 owing to a strong showing in its US business. But for a one-time expense, the company's net profit would have more than doubled on a year-on-year basis.

The pharmaceutical company reported a consolidated net profit of INR 14.60 billion, which is an increase of 89% on year and higher than the consensus view of analysts, which had pegged the figure at INR 12.17 billion. Its bottom line would have been even better at INR 15.92 billion, up 106% on year, had the company not incurred a one-time cost of INR 1.31 billion. Its revenue for the first three months of 2026 rose 32% on year to INR 74.45 billion, also beating the consensus view with ease. 

The company's total expenses rose over 15% on year to INR 55.5 billion. A majority of the rise was driven by a sharp increase in manufacturing and other expenses, which rose almost 31% on year to INR 22 billion. Cost of materials and employee-benefit expenses rose 11% and 24%, respectively, to over INR 12 billion each. Lupin earned a big chunk due to depreciation of the rupee against the dollar with foreign exchange gains of over INR 3 billion in the reporting quarter against a relatively minor gain of around INR 290 million in the year-ago period.

The company said it had spent an amount equal to 8% of its total sales, or around INR 5.90 billion, on research and development in Jan-Mar. In FY26, the company invested INR 20.63 billion in R&D. It incurred capital expenditure of INR 3.05 billion in the March quarter, taking its capital expenditure for FY26 to INR 10.62 billion.

Explaining the exceptional costs, the company said it had created a provision of around INR 1.32 billion in the March quarter, to be used when the company or its subsidiaries incur outflows to settle anti-trust matters and reach settlement agreements, such as with Astellas, for which its subsidiary LPI paid INR 8.48 billion in February.

GEOGRAPHIES

For the quarter ended March, the company's sales in the US surged 57% on year to almost INR 34 billion. US sales contributed to 46% of the company's global sales. Lupin remains the third-largest pharmaceutical company in the US generic market and US total market by prescriptions, the company said, citing IQVIA data. For FY26, the company's US sales were at INR 116.78 billion, up 46% on year.

The company's sales in India for the March quarter rose 11.5% on year to INR 19.08 billion, accounting for 26% of its global sales. Sales in India for FY26 were INR 81.14 billion, up 7.1% on year. India region formulation sales were up 14.5% in the quarter. Lupin is the eighth largest company in the Indian pharmaceutical market.

In emerging markets, the company's sales rose to INR 9.91 billion, up almost 50% on year. These sales accounted for 13% of Lupin's global sales. For FY26, sales in emerging markets rose over 35% to INR 34.83 billion. In other developed markets, the company's sales for the quarter rose over 7% on year to INR 8.45 billion, accounting for 12% of Lupin's global sales. For the full financial year, sales in other developed markets rose to INR 32.44 billion, up a little over 13%.

Active pharmaceutical ingredient sales for the March quarter rose 7.6% on year to INR 2.49 billion. For FY26, these sales fell nearly 18% to INR 9.69 billion, accounting for 4% of Lupin's global sales.

MARGINS, APPROVALS

The company's consolidated earnings before interest, tax, depreciation, and amortisation for the quarter almost doubled on year to INR 26.26 billion. Its EBITDA margin expanded by a whopping 11 percentage points to 35.5%. The company had a net cash position of INR 46.36 billion as on Mar. 31.

In the quarter under review, Lupin received approval for three abbreviated new drug applications from the US Food and Drug Administration. Such filings with the US FDA stand at 430 as of Mar. 31, with the company having received 344 approvals to date, Lupin said. The company now has 52 first-to-file filings, including 22 exclusive first-to-file opportunities, it said.  

For FY26, Lupin's consolidated net profit grew nearly 63% on year to INR 53.33 billion. The consolidated revenue for the year was INR 279.58 billion, up almost 23% from the year-ago period. The company's board approved a dividend of INR 18 per share. Thursday, its shares closed at INR 2,460.10 on the National Stock Exchange, up 0.7% from Wednesday. The company declared its December quarter results after market hours.  End

Edited by Rajeev Pai

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