Lupin shares gain after US sales beat expectations but profitability impacted

Shares of Lupin Ltd. were trading with gains of 2% on Wednesday, November 4, after the pharmaceutical company reported its Q2 FY27 results, with revenue and profitability largely ahead of market estimates.

Lupin reported revenue of ₹7,827.26 crore for the September quarter, up 11% year-on-year (YoY) from ₹7,047.51 crore. However, revenue declined 5.4% quarter-on-quarter (QoQ) from ₹8,276.89 crore.

EBITDA fell 13% YoY to ₹2,044.41 crore from ₹2,341.33 crore. On a sequential basis, EBITDA declined 16.5% from ₹2,449.55 crore.

EBITDA margin contracted to 26.1% in Q2 FY27 from 33.2% in the year-ago quarter and 29.6% in the preceding quarter.

Net profit declined 22% YoY to ₹1,155.3 crore from ₹1,484.83 crore. Sequentially, profit fell 18.5% from ₹1,416.98 crore.

Despite the year-on-year and sequential decline in key financial parameters, Lupin's performance was marginally ahead of estimates. Revenue came in slightly above the poll estimate of ₹7,779.6 crore, while EBITDA and net profit exceeded estimates by around 9% and 10%, respectively. EBITDA margin at 26.1% was also approximately 210 basis points above the estimated 24%.

Lupin Q2: Geography-wise performance

The US remained Lupin's largest market, contributing 39% to overall sales. Revenue from the region increased 9.3% YoY to ₹3,020.2 crore from ₹2,762.4 crore. However, it declined 12.1% QoQ from ₹3,434.8 crore. US sales stood at $317 million, compared with $314 million in the year-ago quarter, and were ahead of estimates of $290-292 million.

India contributed 31% to overall sales. Revenue from the domestic market rose 14.7% YoY to ₹2,383.6 crore from ₹2,077.7 crore. Sequentially, revenue was largely flat compared with ₹2,379.6 crore.

Other developed markets accounted for 15% of sales. Revenue from these markets increased 45.7% YoY to ₹1,182.3 crore from ₹811.7 crore. On a sequential basis, revenue grew 3% from ₹1,149.4 crore.

Emerging markets contributed 11% to overall sales. Revenue from this segment declined 3.5% YoY to ₹890.8 crore from ₹922.8 crore. Sequentially, revenue fell 10% from ₹989.7 crore.

The active pharmaceutical ingredients (API) business accounted for 4% of sales. Revenue from the segment increased 20.2% YoY to ₹308.6 crore from ₹256.8 crore. On a QoQ basis, revenue rose 17% from ₹263.7 crore.

Lupin reported net debt of negative ₹3,349 crore, indicating a net cash position of ₹3,349 crore, assuming the company uses the conventional net debt definition.

Lupin shares ended 0.97% higher at ₹2,015.90 on Tuesday, November 3. The stock is down around 4% so far in 2026.