Detailed Narrative
Record Q2 FY26 Performance and Margin Expansion
Lupin achieved a record Q2 FY26, with total revenue from operations exceeding INR 7,000 crores and EBITDA surpassing INR 2,100 crores for the first time in its history. This robust performance was driven by broad-based growth across all key markets. The company's EBITDA margin expanded significantly to 31.3%, marking an increase of 750 basis points YoY and 470 basis points QoQ, primarily attributed to a favorable product mix, lower share of in-licensed products, and improved operational efficiencies.
Strong US Business Growth and Complex Product Pipeline
The US business delivered one of its highest revenue figures to date, reaching USD 315 million, reflecting a 41% YoY and 11.5% QoQ growth. This was bolstered by new product launches such as Tolvaptan, where Lupin continues to enjoy first-to-file exclusivity, and Mirabegron. The company also secured successful approvals for several complex injectables, including generic Victoza and Risperdal long-acting injectable, and aims to double the share of complex products in its US business over the next few years.
India Formulations Outperformance and R&D Focus
India revenues grew 3.4% YoY, with the core domestic formulations business delivering a healthy 8.8% growth, outperforming the IPM growth by 1.2 times. When normalized for the impact of loss of exclusivity on certain products, domestic growth stood at a robust 10.7% YoY for H1. R&D spend for the quarter was INR 509 crores, representing 7.5% of sales, with approximately 70% directed towards complex and specialty platforms. The company plans over 80 new product launches, including GLP-1s like Semaglutide, in the coming years.
Strategic Expansion in Europe and Emerging Markets
Other Developed markets, including Europe, Canada, and Australia, collectively delivered 19% YoY growth, with Europe being a standout performer, growing 26.8% YoY for Q2 FY26. The planned acquisition of VISUfarma, expected to close by 2025, is set to expand Lupin's European footprint and build a global specialty franchise, aiming for USD 150 million in annualized revenues next year. Emerging markets also demonstrated impressive growth of 45% YoY, significantly led by Brazil's 141% growth in local currency.
Commitment to Compliance and ESG Leadership
Lupin received VAI (Voluntary Action Indicated) status for its Pithampur Unit 3 respiratory facility and is actively addressing the OAI (Official Action Indicated) at Unit 2, underscoring its commitment to maintaining the highest global quality and regulatory standards. On the ESG front, the company achieved a remarkable S&P Global ESG score of 91 in 2025, a 15-point improvement over 2024. This achievement positions Lupin as a leader in the pharmaceutical industry for sustainability and responsible growth.
Capital Investments for Future Growth and Biosimilars Pipeline
The company announced planned investments of USD 250 million in the US, combining Capex and pipeline, for its Coral Springs site. This investment is aimed at catering to anticipated demand for respiratory products, including the Respimat and Ellipta franchises, and establishing an MDI line. Lupin is also making significant progress on its biosimilars portfolio, with Pegfilgrastim expected to launch in the next few weeks and Ranibizumab in the middle of next year, targeting at least five products in the US market by FY30.