LUPIN - Lupin

📊 NSE: LUPIN 🏢 Pharmaceuticals - Indian - Bulk Drugs & Formln 📅 Last Updated: 12/14/2025 9:20

💰 Financial Performance

Revenue Growth by Segment

Formulations segment accounted for 92.6% of consolidated revenues in 9M FY2024, while the API segment contributed 6.0%. The API business grew 3% YoY to INR 1,177.2 Cr in FY2025. Consolidated revenue grew 13.5% YoY in FY2025 to INR 22,707.9 Cr and 24% YoY in Q2 FY2026 to INR 7,048 Cr.

Geographic Revenue Split

In FY2025, North America contributed 38% (up 16% YoY), India 34% (INR 7,577.3 Cr, up 14% YoY), EMEA 11% (up 22% YoY), Growth Markets 9% (up 7% YoY), and API business 5%.

Profitability Margins

Operating profit margin (OPM) improved to 18.6% in 9M FY2024 from 10.8% in FY2023. Profit Before Tax (PBT) increased by 65.8% in FY2025. Return on Capital Employed (ROCE) reached 25% by the end of Q2 FY2026, up from 21.6% in FY2025.

EBITDA Margin

EBITDA margin for Q2 FY2026 was approximately 24-25%. Consolidated EBITDA rose 39.4% YoY in FY2025, driven by operating leverage and improved product mix.

Capital Expenditure

Regular capital expenditure is estimated at INR 700-800 Cr per annum, primarily funded through internal accruals.

Credit Rating & Borrowing

Short-term rating reaffirmed at [ICRA]A1+ for INR 3,000 Cr facilities. The company maintains a strong liquidity position with cash and bank balances of INR 5,397.8 Cr as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

Key raw materials include anti-TB APIs and high-potency APIs. Captive API consumption accounts for 75-80% of total requirements, reducing external dependency.

Key Suppliers

Not disclosed in available documents; however, the company is actively working on alternate vendor development to manage gross margins.

Capacity Expansion

Capex of INR 700-800 Cr per annum is planned for maintenance and incremental expansion. Higher capacity utilization at key manufacturing sites has improved operating leverage.

Raw Material Costs

Raw material costs are managed through high captive integration (75-80%). Gross margins improved in FY2025 due to a shift toward complex generics and respiratory products.

Manufacturing Efficiency

Operating leverage improved due to higher capacity utilization and digitization of commercial operations, contributing to a 25% ROCE in Q2 FY2026.

Logistics & Distribution

Distribution costs are optimized through supply chain agility and digitization, though specific INR values were not disclosed.

📈 Strategic Growth

Expected Growth Rate

24%

Growth Strategy

Growth will be driven by a differentiated pipeline in complex generics (inhalations and injectables), biosimilars (Ranibizumab, Pegfilgrastim), and expansion into underpenetrated European markets like Italy and Spain through a EUR 190 million acquisition. India growth is focused on chronic therapies and new verticals like diagnostics.

Products & Services

Anti-TB medicines, anti-diabetes formulations, respiratory inhalers, complex injectables, biosimilars, and diagnostic services.

Brand Portfolio

Lupin, Lupin Manufacturing Solutions (LMS), Enzene (Biosimilars).

New Products/Services

New product launches in the US and India, including biosimilars like Ranibizumab and Pegfilgrastim, are expected to drive significant margin expansion.

Market Expansion

Expansion into Italy and Spain via the acquisition of Nanomi B.V. for EUR 190 million, expected to be completed by December 2025.

Market Share & Ranking

8th largest company in the Indian Pharmaceutical Market (3.4% share) and 3rd largest pharmaceutical player in the US by prescriptions.

Strategic Alliances

Lupin Manufacturing Solutions (LMS) is positioned as a differentiated CDMO partner for global pharma innovators.

🌍 External Factors

Industry Trends

The industry is shifting toward complex generics and CDMO outsourcing due to 10-15% annual price erosion in commoditized generics. Lupin is positioning itself through high-barrier respiratory products and biosimilars.

Competitive Landscape

Intense competition in US generics and biosimilars, with some players exiting due to pricing pressures, allowing Lupin to gain market share in niche segments.

Competitive Moat

Lupin holds a durable moat as the only WHO pre-qualified company globally for both anti-TB APIs and formulations, alongside a dominant 42% US revenue share from complex inhalations.

Macro Economic Sensitivity

Vulnerable to US healthcare reforms, changes in the US tariff regime, and domestic pricing controls under the National List of Essential Medicines (NLEM).

Consumer Behavior

Increased demand for chronic therapies and diagnostic services in India is driving a 14% growth in the domestic formulation business.

Geopolitical Risks

Trade barriers and regulatory shifts in the US and EU could impact the 49% of revenue derived from these regulated markets.

⚖️ Regulatory & Governance

Industry Regulations

Subject to USFDA manufacturing standards (warning letters pending for Tarapur and Mandideep) and NLEM pricing controls in India.

Environmental Compliance

The company received an ESG rating from NSE Sustainability Ratings & Analytics Limited in December 2025.

Taxation Policy Impact

Financial statements are prepared in accordance with Indian Accounting Standards (Ind AS).

Legal Contingencies

Ongoing investigation by the US DoJ anti-trust division regarding price fixing and collusion allegations; impact remains an event risk.

⚠️ Risk Analysis

Key Uncertainties

Adverse outcomes from US DoJ investigations or failure to resolve USFDA warning letters could impact revenue by restricting market access or incurring heavy fines.