Can Lupin Sustain Its Margin Expansion Through FY26?
About Lupin
Lupin Limited is a leading global pharmaceutical company focused on generics, complex APIs, and biosimilars. With a strong US portfolio and diversified emerging market base, the company continues to enhance profitability through innovation and cost discipline.
In Q2FY26, Lupin’s revenue, EBITDA, and PAT grew 8%, 22%, and 30% YoY respectively. Operational leverage, strong US and EM growth, and effective R&D spending supported margin expansion beyond street estimates.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY |
|---|---|---|
| Revenue | ₹4,930 Cr | +8% |
| EBITDA | ₹1,490 Cr | +22% |
| EBITDA Margin | 30.3% | +359 bps |
| PAT | ₹910 Cr | +30% |
Revenue ₹4,930 Cr — led by US and India formulations growth.
EBITDA ₹1,490 Cr — beat estimates on improved product mix and R&D optimization.
EBITDA Margin 30.3% — indicates sustained efficiency and price stability in key markets.
PAT ₹910 Cr — boosted by US launches and better operating leverage.
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Peer Comparison
| Company | EBITDA Margin | Focus |
|---|---|---|
| Lupin | 30.3% | US, India, EMs |
| Dr. Reddy’s | 27.5% | US, India |
| Sun Pharma | 29.8% | Global |
Lupin’s R&D at 7.5% of sales ensures pipeline visibility and readiness for biosimilar entries in regulated markets.
Strengths & Weaknesses
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Weaknesses
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Opportunities & Threats
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Lupin’s margin uptrend appears sustainable with product diversification and efficient cost control.
Valuation & Investment View
- Short-term: Stable near current levels, pending litigation clarity.
- Medium-term: Margin expansion and VISUfarma synergies to drive growth.
- Long-term: Biosimilars and US ramp-up to support double-digit EPS CAGR.
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Investor Takeaway
Indian-Share-Tips.com’s Nifty Expert Gulshan Khera, CFP®, emphasizes that Lupin’s operational leverage, specialty portfolio strength, and biosimilar pipeline provide strong medium-term visibility. Explore more such insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
