Synopsis: Lupin Ltd reported 24% YoY revenue growth in Q3 FY26, driven by 54% U.S. surge and strong Emerging Markets performance, while margins and profitability improved significantly.
The shares of this company, which specializes in developing and manufacturing generic formulations, APIs (Active Pharmaceutical Ingredients), and biotechnology products, are in focus today after strong third-quarter results.
With a market capitalization of Rs 1,00,487 crore, Lupin Ltd’s share on Friday made a day high of Rs 2,223 per share, up by 0.5 percent from its previous day’s close price of Rs 2,210 per share. The shares of this company trade at an undervalued PE of 20x, lower compared to the industry PE of 29.6x.
Results Highlights
- QoQ View: The revenue from operations grew by 1.7 percent to Rs 7,168 crore in Q3 FY26 from Rs 7,048 crore in Q2 FY26, and EBDIT declined by 3.37 percent to Rs 2,626 crore in Q3 FY26 from Rs 2,341 crore in Q2 FY26. Accompanied by a net profit that declined by 20.4 percent to Rs 1,181 crore in Q3 FY26 from Rs 1,485 crore in Q2 FY26.
- YoY View: The revenue from operations grew by 24 percent to Rs 7168 crore in Q3 FY26 from Rs 5,768 crore in Q3 FY25, and EBDIT grew by 67 percent to Rs 2,262 crore in Q3 FY26 from Rs 1,341 crore in Q3 FY25. Accompanied by a net profit growth of 76 percent to Rs 1,181 crore in Q3 FY26 from Rs 859 crore in Q3 FY25, resulting in an EPS growth of 37 percent to Rs 25.73 per share in Q3 FY26.
- Sales Mix: Lupin Ltd’s Q3 FY26 sales mix reflects a U.S.-centric revenue profile, with the U.S. contributing 44 percent of total sales, followed by India at 29 percent. Emerging Markets accounted for 13 percent, Other Developed Markets 11 percent, while the API segment formed a modest 3 percent, indicating strong formulation-led diversification.
- Operational Highlights: Lupin Ltd delivered a strong Q3 FY26 performance, anchored by exceptional growth in the U.S. market. U.S. sales surged 54 percent YoY to INR 31,132 million, contributing 44 percent to global revenue, supported by one ANDA approval and three product launches during the quarter.
R&D investment stood at INR 5,352 million, representing 7.5 percent of sales, underscoring pipeline focus. However, the Global API segment declined 24.1 percent YoY to INR 2,195 million, contributing just 3 percent to overall revenue, partially offsetting broader growth momentum.
Lupin Limited is a global pharmaceutical leader headquartered in Mumbai, India, with products distributed in over 100 markets. Lupin specializes in pharmaceutical products, including branded and generic formulations, complex generics, biotechnology products, and active pharmaceutical ingredients.
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