Why Is Nomura Turning Positive on Lupin After a Strong Q2FY26 Performance?
Pharma major Lupin Ltd has surprised the Street with a strong second-quarter performance, driven by robust revenue growth in North America and India, along with margin expansion across key business verticals. Nomura has reiterated its positive stance on the stock with an upgraded earnings outlook through FY26–FY28.
🎯 Target Price: ₹2,350
📊 Recommendation: BUY
• Q2 results beat estimates with strong margins.
• North America and India businesses led growth.
• Significant contribution from LATAM and ROW regions.
• Quarterly capex spend highest in the past 4 years, indicating expansion momentum.
Financial Highlights (Q2 FY26)
| Revenue | ₹5,295 Cr ↑ 13% YoY |
| EBITDA | ₹1,090 Cr ↑ 25% YoY |
| EBITDA Margin | 20.6% ↑ 190 bps YoY |
| PAT | ₹795 Cr ↑ 22% YoY |
| EPS | ₹17.2 vs ₹13.9 YoY |
Lupin’s strong growth trajectory is supported by new product launches in the US generics market and volume expansion in the India formulation segment. Cost optimization efforts have further strengthened operating leverage, while R&D spend continues to rise in line with pipeline expansion.
• Steady growth in US generics driven by gSpiriva and gSuprep.
• Domestic formulation leadership in chronic and cardio-diabetes portfolio.
• R&D intensity to remain near 8.5–9% of sales.
• Margin sustainability aided by product mix and pricing recovery.
• Expanding global footprint across LATAM and APAC markets.
The management’s focus on operational discipline and geographical diversification has placed Lupin among the best-positioned mid-cap pharma names for FY26. Its calibrated expansion in the US respiratory space is expected to be the key driver of earnings growth ahead.
Stay updated with evolving index positions and directional Nifty setups.
Valuation & Investment View
👉 Follow the BankNifty Positional Tip for upcoming trend confirmation
Investor Takeaway
Lupin’s turnaround story continues to gain traction, with strong operational discipline and emerging-market leadership. The stock offers long-term value as margin improvement sustains across geographies. Get more exclusive updates and market-tested insights only 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.
Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
