Lupin Limited

Lupin achieved its 14th consecutive quarter of YoY growth, with total revenues reaching INR 7,168 crores, a 24% increase YoY. This growth was broad-based, with the US business recording its highest-ever sales of USD 350 million, up 46% YoY and 11% QoQ on a constant currency basis. The US performance was driven by new product launches like Tolvaptan and Risperdal Consta®, alongside higher volumes and seasonal tailwinds in the base business, which more than offset low single-digit price erosion.

EBITDA margins (excluding Forex and other income) expanded by 681 basis points YoY to 31.1%, reaching a new high for the company. Gross margins also saw a substantial improvement, rising 420 basis points YoY to 73.5%. This margin expansion was attributed to a better product mix, a lower share of in-licensed products, higher profitability from loss of exclusivity products in India, increased volumes, and ongoing cost improvements and efficiencies.

Lupin is actively pursuing a strategy to double the share of complex products in its US business and expand its specialty portfolio. A key milestone this quarter was the successful US FDA inspection of its Pune biologics facility and the approval of Pegfilgrastim, its first biosimilar for the US market, with an exclusive licensing agreement for commercialization. The company also highlighted a rich pipeline of biosimilars including Ranibizumab (FY27), Aflibercept, and Etanercept (CY29/FY30), alongside 505(b)(2) products starting in FY27, which are expected to be material growth drivers.

The India business grew 5.6% YoY, with the core prescription business growing 10.9% YoY in Q3 FY26. For the nine-month period, prescription growth stood at 9.4%, broadly in line with IPM growth. Excluding the impact of loss of exclusivity on certain diabetes products, domestic growth was 11.2% YoY for nine months. The chronic segment's share increased to 67% of the portfolio. Lupin also launched two new divisions, including one focused on obesity, and entered a strategic partnership for Bofanglutide, a novel GLP-1 agonist, further strengthening its diabetes and obesity portfolio.

R&D spend for the quarter was INR 535 crores, representing 7.5% of sales, with approximately 70% directed towards the complex portfolio. For the full year, R&D spend is guided to be 7.5% - 8.5% of sales. The company has over 50 active products in its pipeline, with a near-term emphasis on Respiratory, Complex Injectables, and Biosimilars. Management expects R&D investment to increasingly flow into specialty programs and value-added medicines, including long-acting injectables and 505(b)(2) assets.

Lupin expects to close the acquisition of VISUfarma in the next few weeks of the current quarter, with consolidation starting from the next quarter. The annual revenue from VISUfarma is projected to be EUR 60 million plus, with initial margins of 25% or more. This acquisition is part of Lupin's strategy to increase contribution from Other Developed markets (Europe, Canada, Australia), which currently account for 11% of total sales and grew 11% YoY this quarter.

The company's net cash position significantly improved to INR 2,879 crores as of December 31, 2025, compared to INR 310 crores on March 31, 2025. Management emphasized a focus on increased cash generation and strategic allocation of capital, particularly towards the specialty front. They indicated an ability to borrow USD 1.5-1.6 billion for potential acquisitions, with a sweet spot for specialty assets in the USD 250-300 million range, also considering assets in India.