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Informist, Friday, May 8, 2026

 

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--Lupin: Expect margins to be around 25% in FY27
--CONTEXT: Comments by Lupin's mgmt in post-earnings analyst call
--Lupin: Diabetes therapy saw lower growth due to loss of exclusivity
--Lupin: Growth of US ops impacted by higher competition
--Lupin: Q4 gross margin improved in part due to better product mix
--Lupin: Brazil, Philippines mkts supported growth of emerging ops Q4
--Lupin: Expect R&D spend to account for 8% of total sales in FY27
--Lupin: Expect revenue to grow in high-single digits in FY27
--Lupin: FY27 margin to be impacted partly due to competition for Mirabegron
--Lupin: FY27 margin to be impacted partly due to competition for Tolvaptan
--Lupin: Focused in allocating material cash to specialty segment
--Lupin: Expect to see some more incentives from PLI going forward
-- Lupin: Expect opthalmology ops to grow in double digits
--Lupin: Expect top line to cross INR 100-billion mark in 2-3 years
--Lupin: India, South Africa, Brazil seen as big markets for Semaglutide
--Lupin: Have 8-9 respiratory product filings in pipeline for US mkt
--Lupin: Hope to launch Semaglutide in Brazil, Canada next year
 

 

By Eshitva Prakash and Anand JC

 

MUMBAI – Lupin Ltd.'s revenue will likely grow in high single digits in rupee terms in 2026-27 (Apr-Mar), its management said in a post-earnings conference call with analysts. The pharmaceutical company expects to maintain its US revenue above $1 billion in FY27, even after factoring in high-single-digit to low-double-digit price erosion due to elevated competition in key drug sales. 

 

"So in the past, we've said that we should be able to sustain the billion-dollar-plus (revenue). At this point, we think that based on the competition that we foresee in products like Mirabegron and Tolvaptan, we should be able to get to a level... compared to the current year, maybe it's a high single-digit or low double-digit erosion in terms of revenues," a company official said. In FY26, the company's US revenue surged to $1.32 billion, compared to $944 million in FY25.

 

The company's management is optimistic about its prospects in the US after a strong showing in the region in the March quarter. In FY27, it expects a material contribution from its injectable launches, Pegfilgrastim biosimilar, and high growth in its core business, which will offset the impact of price erosion in its US portfolio.

 

The company also has a slew of regulatory product filings pending approval in the current financial year. "So Ranibizumab is actually in the works right now and will be a current fiscal year filing... Etanercept will be in the current fiscal year (as well). We pretty much have the entire dossier for Etanercept," a company official said. "Actually, for the US, we have 8 to 9 product filings in FY27 on the respiratory front," they added. 

 

The company's management guided a quarterly top-line growth of INR 100 billion in the next 2–3 years. However, this is contingent upon factors such as a strong contribution from its recently acquired entity, VISUfarma, in the ophthalmology segment, and the scaling up of sales in Europe and developing markets. "Given the pipeline that VISUfarma has on the ophthalmology front, we expect the business to, in the ophthalmology side, continue to grow (in) double-digit in the countries that we are now present in, in Europe," Lupin's management said.  

 

The company has guided to a 25?rnings before interest, tax, depreciation, and amortisation margin in FY27, down from 33% in FY26. It attributed the decline to expectations of intense competition in Tolvaptan and Mirabegron drugs. Its research and development expenditure and rising freight costs could also create some pressure on margins, the company's management said. It expects R&D expenditure to account for 8% of total sales in FY27, up from 7.5% in FY26.

 

The company's management has strong hopes for its recent purchase of VISUfarma, on the back of which it expects its ophthalmology therapy segment to grow in double digits in FY27. "There are multiple areas strategically, the VISUfarma acquisition adds to us. Number one, geographically, it expands our presence from the UK, Germany, France to Italy and Spain, markets that we had no presence in... just leveraging the presence across the ophthalmology portfolio, taking our respiratory products, our biosimilars, is a real opportunity for us that we see as a potential for growing our overall footprint in Europe," the company's management said.

 

Asked whether the company is looking for more inorganic growth opportunities, its management said they are allocating material cash to the speciality segment. "Now that we have transacted on VISUfarma, we're seeing a high flow of ophthalmology assets, which could be pretty interesting for us, and likewise, (we) continue to look for pulmonology as well as rare neurological assets."

 

The company sees high growth opportunities for the generic version of the blockbuster weight-loss drug, Semaglutide, in markets such as India, South Africa, Brazil, and Canada. In the March quarter, the company launched a semaglutide injectable, Semanext, for the treatment of type 2 diabetes and chronic weight management. The company hopes to launch Semaglutide in Brazil and Canada next year.

 

"We think in the emerging markets where we have really built a market presence on the diabetes metabolic front, like I mentioned, Brazil with the DAPA (dapagliflozin) launch and now EMPA (empagliflozin) launch, we're really creating a good position in the metabolic space. We see a good opportunity even as a latecomer," the company's management said.

 

The company expects to derive greater benefits from production-linked incentives in the upcoming quarters. "There will be some PLI coming next year as well," a senior official said. He said the quarterly run-rate of production-linked incentive income is "maintainable."

 

The company reported strong numbers for the March quarter on Thursday. Its consolidated net profit rose 89% on year to INR 14.60 billion. Its revenue for the first three months of 2026 rose 32% on year to INR 74.75 billion, with both metrics sailing past the consensus view. Friday, the company's shares ended 3.3% lower at INR 2,379.50 on the National Stock Exchange.  End

 

US$1 = INR 94.48

 

Edited by Saji George Titus

 

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