Lupin reported a highly successful Q3 FY2026, marking the 14th consecutive quarter of YoY revenue growth, driven by broad-based execution across key regions. Total revenues reached INR 7,168 crores, a 24% YoY increase. The company achieved a record EBITDA margin of 31.1%. The US business saw exceptional growth at 46% YoY (constant currency), while Emerging Markets grew an impressive 42% YoY.
Q3 FY2026 Financial Highlights
Lupin Limited delivered a very strong third quarter for FY2026, continuing a sustained momentum of high performance. Total revenues from operations for the quarter reached INR 7,168 crores, demonstrating a robust 24% YoY growth compared to INR 5,768 crores in Q3FY25. EBITDA, excluding Forex and other income, scaled a new high, reaching INR 2,210 crores, representing a 62% YoY increase.
The profitability metrics were exceptional. EBITDA margins hit 31.1% for the quarter, an increase of 681 basis points compared to the prior year period (24.3%). For the nine-month period (9MFY26), EBITDA margins stood at 29.8%.
Key Market Performance
US Business
The US business recorded its highest-ever sales at USD 350 million, achieving 46% YoY growth and 11% QoQ growth on a constant currency basis. This success was attributed to new product launches, including Tolvaptan, and strong base business growth driven by higher volumes, which offset low single-digit price declines.
A major milestone achieved was the receipt of the US FDA approval for Pegfilgrastim, Lupin’s first biosimilar for the US market, expected to launch shortly. The company is focused on growing its specialty portfolio and complex products share in this market.
India Business
India region revenues grew 5.6% YoY. The core prescription business demonstrated strong growth of 10.9% YoY in Q3 FY26. On a nine-month basis, prescription growth was 9.4%, aligning closely with the IPM growth of 9.3%.
The chronic segment now constitutes 67% of the portfolio (up from 65% last quarter). Key therapies like Respiratory and Cardiovascular grew at 1.6 times and 1.3 times IPM, respectively, over the nine-month period. The management expressed confidence in sustaining double-digit growth in the India Rx business over the next few years.
Other Developed and Emerging Markets
Other Developed Markets (Europe, Canada, Australia) generated revenues of INR 812 crores, showing an 11% YoY growth. This segment is expected to grow further following the anticipated closure of the VISUfarma acquisition this quarter.
Emerging Markets delivered an impressive 42% YoY growth, led by Brazil (growing 99% YoY in local currency), Mexico, and the Philippines.
Operational and R&D Focus
Gross Margins and Expenses
Gross margins continued their upward trajectory, reaching 73.5%, up 420 basis points YoY. This improvement was driven by a better product mix, lower share of in-licensed products, and cost efficiencies.
R&D spend for the quarter was INR 535 crores (7.5% of sales), with almost 70% directed towards the complex portfolio. Management anticipates full-year R&D spend to remain in the 7.5% – 8.5% range.
Strategic Outlook and Capital Allocation
Management reiterated optimism regarding long-term growth, supported by strategic drivers focused on specialty and complex platforms. The Injectables portfolio is targeted to deliver USD 100 million plus in revenue over the next three years, driven by biosimilars and 505(b)(2) filings, including the recent approval of Pegfilgrastim.
The company is actively exploring capital allocation, noting the ability to borrow up to USD 1.5 billion. Priorities for M&A focus on specialty assets, particularly in the US and Europe, within the USD 250 million to USD 300 million range.
ESG Commitment
Lupin confirmed its leadership in sustainability, achieving the highest A-leadership rating from CDP for climate change and water security, alongside formal approval of greenhouse gas reduction targets by the SBTi.
Source: BSE
