Lupin reports a historic quarter driven by strong international and Indian market performance, while preparing to launch over 50 products in the US market over the next three years, despite facing increased competition and a cautious US outlook.
Lupin posted a record quarter as revenue climbed above INR 8,000 crore and EBITDA crossed INR 2,400 crore for the first time, extending a run of 16 straight quarters of year-on-year growth. The drugmaker said the performance was driven by broad-based gains across its business, with organic revenue outside the US rising more than 20%, supported by strong growth in other developed markets and emerging markets.
India remained a bright spot. Lupin said its domestic business grew 13.9% from a year earlier, ahead of the wider market, with the core prescription portfolio up 15.1%. Diabetes was a standout, rising 31.8%, while management said it wants chronic therapies to make up 70% of India sales over time.
Margins also improved sharply. Gross margin widened by 330 basis points to 74.6%, helped by a richer product mix, higher profitability in India, stronger volumes and cost savings. The company has also been investing heavily in research, with management indicating that R&D spending is likely to rise to about 8% of sales for the full year.
The upbeat quarter, however, sits alongside a more cautious outlook for the US, Lupin’s biggest market. Vinita said competition is increasing on key products such as mirabegron and tolvaptan, with quarterly US revenue expected to ease to a range of $250 million to $280 million in the coming quarters after a strong $367 million in the first quarter. Ramesh said the company is also watching costs closely, pointing to geopolitical uncertainty, higher input prices and a likely EBITDA margin range of 24% to 25% for the year.
Even so, the company is leaning on a deep pipeline to drive the next phase of growth. Lupin said it plans to launch more than 50 products in the US over the next three years, including 10 exclusive first-to-file products, five biosimilars and two to three 505(b)(2) medicines. Management said US growth should strengthen from FY28, while Europe and other developed markets are expected to benefit from the VisuPharma acquisition and a growing biosimilars portfolio. The company also said its Ankleshwar and Somerset plants received US Food and Drug Administration EIRs with VAI status, an important regulatory signal for quality and compliance.
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