This article first appeared on GuruFocus .
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Total Revenue:INR7,048 crores, a 24% year-on-year growth.
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EBITDA:INR2,138 crores, a 63% year-on-year increase with a margin of 31.3%.
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Gross Margin:73.3%, up from 69.3% year-on-year.
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US Revenue:$315 million, a 41% year-on-year growth.
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India Revenue Growth:3.4% year-on-year; core domestic formulations grew 8.8%.
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Other Developed Markets Growth:19% year-on-year.
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Emerging Markets Growth:45% year-on-year.
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R&D Spend:7.5% of sales.
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Operating Working Capital:INR7,730 crores, translating to 102 days.
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Net Cash:INR1,665 crores as of September 30, 2025.
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Release Date: November 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Lupin Ltd ( BOM:500257 ) reported record quarterly revenues and EBITDA, with total revenue from operations exceeding INR7,000 crores and EBITDA surpassing INR2,100 crores.
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The company achieved a significant margin expansion, with EBITDA margins reaching 31.3%, marking a 750 basis points increase year-over-year.
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The US market showed exceptional growth, with a 47% year-over-year increase, driven by new product launches and continued exclusivity for tolvaptan.
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Lupin Ltd ( BOM:500257 ) became the first Indian company to secure approval for several complex injectable products, including generic Victoza and Risperdal long-acting injectable.
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The company is on track to double the share of complex products in its US business over the next few years, supported by a robust pipeline of biosimilars and specialty products.
Negative Points
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Despite strong overall performance, the India business grew only 3.4% year-over-year, impacted by lower local tender sales and loss of exclusivity on certain products.
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The company anticipates some erosion in US revenues from tolvaptan due to expected competition after the 180-day exclusivity period.
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Lupin Ltd ( BOM:500257 ) faces ongoing compliance challenges, with a recent OAI status at one of its facilities, although efforts are underway to address these issues.
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The company expects higher R&D expenses in the second half of the fiscal year, which may temper overall margins.
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There is uncertainty regarding the timing and impact of potential competition for key products like Spiriva and Mirabegron in the US market.
Q & A Highlights
Q: How do you see the US business revenue moving in the coming quarters, especially with the impact of tolvaptan? A: Vinita Gupta, CEO, mentioned that while they expect some erosion from the $315 million due to competition, they anticipate maintaining a quarterly revenue between $275 million to $300 million. Key launches like Risperdal Consta and Victoza are expected to sustain the $1 billion-plus level into fiscal year '27.
Q: What is the guidance for EBITDA margins for FY26 and FY27? A: Ramesh Swaminathan, CFO, stated that they have raised the FY26 EBITDA margin guidance by 100 basis points and expect to maintain margins around 24% to 25% in FY27, despite increased R&D expenditure.
Q: Can you provide an update on the Nagpur facility inspection and its importance for future growth? A: Nilesh Gupta, Managing Director, confirmed that they have submitted their response to the inspection observations. The facility is crucial for their injectables and biotech products, and they are committed to maintaining compliance.
Q: What is the strategic rationale behind the VISUfarma acquisition? A: Vinita Gupta explained that the acquisition expands Lupin's footprint in Europe, particularly in Italy and Spain, and strengthens their ophthalmology specialty franchise. It also provides infrastructure to launch Lupin's portfolio in these markets and offers synergies in emerging markets.
Q: How do you view the growth potential in emerging markets like Brazil and South Africa? A: Vinita Gupta highlighted strong growth in these regions, driven by successful product launches in Brazil's diabetes franchise and a turnaround in South Africa. They expect to sustain double-digit growth in these markets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
