Lupin announced a record-breaking Q2 FY2026, with revenue exceeding INR 7,000 crore and EBITDA surpassing INR 2,100 crore for the first time. Margins expanded significantly, reaching 31.3%, driven by exceptional growth in the U.S., strong performance in India, and solid contributions from developed and emerging markets. The company anticipates continued growth, particularly in complex generics and specialty products.
Financial Highlights
Lupin reported record quarterly performance in Q2 FY2026, marking the 13th consecutive quarter of year-over-year growth. Key highlights include:
- Total revenue exceeding INR 7,000 crore.
- EBITDA surpassing INR 2,100 crore.
- Margin expansion of 750 basis points year-over-year, reaching 31.3%.
US Business Performance
The U.S. business achieved one of its highest revenue figures to date, driven by new product launches, including the continued exclusivity for Tolvaptan. Sales reached USD 315 million, a 41% year-over-year increase. The company anticipates biosimilars contributing positively to U.S. revenues from fiscal year 2027, targeting at least five products in the market by fiscal year 2030.
India Business Performance
India revenues grew 3.4% year-over-year, with the core domestic formulations business delivering 8.8% growth, translating to 1.2 times IPM growth. Excluding the impact of loss of exclusivity, domestic growth stood at 10.7% for H1. The chronic segment now represents 65% of the portfolio.
Other Key Markets
Other Developed markets, including Europe, Canada, and Australia, delivered 19% year-over-year growth, with Europe growing 26.8%. Emerging markets grew an impressive 45% year-over-year, led by strong performance in Brazil and South Africa.
Strategic Initiatives
The company plans to double the share of complex products in the U.S. business and invest in expanding its specialty portfolio. The acquisition of VISUfarma is expected to close by 2025, enhancing the European footprint and building a global specialty franchise.
R&D and Compliance
R&D spend stood at 7.5% of sales this quarter. The company has over 50 product filings planned for the U.S., with a near-term focus on respiratory, complex injectables, and biosimilars. Lupin received VAI status for its Pithampur Unit 3 respiratory facility and is actively addressing the OAI at Unit 2.
Financial Outlook
The company expects full-year EBITDA margins to be in the range of 25% to 26%. The effective tax rate (ETR) is expected to be around 21% to 22% for the full year.
Source: BSE
