Lupin Q2 FY2026 Results: Net Profit Jumps 73% on Strong US & Emerging Market Growth
Lupin Q2 FY2026 Results: Lupin has delivered a strong performance in Q2 FY2026 (quarter ended September 30, 2025), reporting a consolidated net profit of approx ₹1,478 crore, up ~73% year-on-year from the prior period.
Revenue from operations rose by ~24% to around ₹7,047.5 crore in Q2 FY2026, versus approx ₹5,674 crore in Q2 FY2025.
EBITDA margin expanded significantly to around ~33.2%, up ~960 basis points compared to the previous year.
Segment & Market Performance
- US (North America / U.S. generics): Sales for Q2 FY2026 reached ≈ ₹2,762 crore (USD 315 Mn) — up ~47.3% vs Q2 FY2025 (~₹1,875 crore) and accounting for ~40% of global sales.
- India: Domestic India business (India Region Formulations) grew ~8.8% vs Q2 FY2025, to approx ₹2,077.7 crore, representing ~30% of global sales.
- Other Developed Markets: Sales ~₹811.7 crore (up ~18.9% YoY) and accounted for ~12% of global sales.
- Emerging Markets: Sales ~₹922.8 crore, up ~45.3% YoY, ~14% of global sales.
- Global API business: Sales were ~₹256.8 crore, down ~12.8% YoY, representing ~4% of global sales.
Product Pipeline & R&D
- Lupin received 6 ANDA (Abbreviated New Drug Application) approvals from the U.S. FDA in the quarter. Cumulative filings: 433; approvals to date: 341.
- The company now has 50 First-to-File (FTF) filings, including ~20 exclusive FTF opportunities.
- R&D investment in Q2 FY2026 was ~₹509.1 crore (≈ 7.5% of sales), down slightly as a percentage of sales compared to Q2 FY2025 at ~8.2%.
Key Drivers & Commentary
- The robust growth has been driven by improved product mix (particularly in the U.S.), strong launches and approvals, and steady growth in emerging markets and India. For example, U.S. sales rising ~47% YoY is a major contributor.
- Lupin has strengthened its position in the U.S. generics market: reportedly the 3rd largest by prescriptions in the U.S. generics and total market (IQVIA data) for September 2025.
- The dip in the API business suggests margin pressure or softer demand in that segment; this is an area to monitor.
- The higher margin expansion (EBITDA margin up ~960 bps) suggests operating leverage being realised.
- Management is likely using this momentum to gear for a stronger FY2026; as one article noted: “We intend to leverage the performance of H1 to deliver a strong FY26.”
Outlook & Considerations
- The strong U.S. business growth is encouraging, but sustainability will depend on new launches, maintaining approvals, and competition in generics.
- India & emerging markets growth is positive, though growth in India was in single-digits (~8.8% for formulations) — the company may need to accelerate growth to meet higher expectations.
- The small decline in API business is a slight caution.
- Investors will watch margin trends, pipeline execution (FTF opportunities), regulatory/approval risk, and growth in specialty or higher-value products.
- Broker commentary remains positive: some analysts maintaining “buy” ratings, citing pipeline and margin improvement as drivers.
Implications for Investors
- Lupin’s significant jump in net profit and margin expansion could strengthen investor confidence and valuation.
- The company’s global diversification (U.S., India, emerging markets) is working in its favour.
- However, competition in generics remains intense, regulatory risks exist (especially U.S. FDA) and execution will be key.
- Given the results, it may be timely for investors to reassess Lupin’s medium-term growth prospects relative to pharmaceutical peers.
Lupin Q2 FY2026 Results Summary
In summary: Lupin has delivered a strong quarter (Q2 FY2026) with ~24% revenue growth, ~73% profit growth, and margin improvement. Growth is broad-based across key markets with strength in U.S. generics, India formulations, and emerging markets. The product pipeline and approvals continue to be healthy. While the API segment underperformed, the overall business momentum is positive. Looking ahead, the ability to sustain growth, manage competition/regulation, and execute pipeline will determine how Lupin converts this strong performance into long-term value.
