Lupin Q3 Results: Net profit up 38% on US sales surge and divestment gains

Drug maker Lupin Ltd on Thursday (February 12) reported a consolidated net profit after tax of ₹1,175.6 crore in Q3 FY26, down sequentially from Q2 FY26 but up 37.5% compared to Q3 FY25. Consolidated revenue from operations stood at ₹7,167.5 crore, up 1.7% quarter-on-quarter and 24.3% year-on-year.

On a standalone basis, net profit after tax was ₹717.5 crore in Q3 FY26, down from ₹1,357.4 crore in Q2 FY26 and ₹1,114.7 crore in Q3 FY25. Standalone revenue from operations was ₹4,601.1 crore, up 12.5% sequentially and 9.3% year-on-year.

Exceptional items during the quarter included a provision of ₹449.4 crore for antitrust litigations and ₹134.8 crore toward a settlement with Astellas. The implementation of the New Labour Codes resulted in an incremental cost of ₹49.6 crore at the standalone level and ₹51.2 crore on a consolidated basis.

Also Read: Lupin settles Mirabegron patent dispute with Astellas, agrees to $90 million payout

The company also recorded gains from the divestment of its OTC and API R&D businesses, amounting to ₹658.9 crore and ₹3.7 crore, respectively. Additionally, a provision of ₹70 crore was made toward the diminution in the value of investment in a subsidiary.

The company reported a gross profit of ₹5,222.4 crore in Q3 FY2026 compared to ₹3,897 crore in Q3 FY2025, with a gross margin of 73.5%. Personnel cost stood at ₹1,143.3 crore, accounting for 16.1% of sales, compared to ₹984.4 crore in the year-ago quarter.

Manufacturing and other expenses were ₹1,936.6 crore, or 27.3% of sales, versus ₹1,695.9 crore in Q3 FY2025. Adjusted PBT came in at ₹1,522 crore, up 42.1% from ₹1,071.3 crore a year ago, at 21.4% margin.

PBT (excluding exceptional items) was ₹1,948.6 crore at 27.4%. The company recorded net one-time exceptional items of ₹426.6 crore. Investment in R&D during the quarter was ₹535.2 crore, representing 7.5% of sales.

Also Read: Lupin launches topiramate extended-release capsules in US after FDA nod

On the balance sheet front, operating working capital stood at ₹7,948.1 crore as of December 31, 2025. Capital expenditure for the quarter was ₹200.7 crore. Net debt stood at negative ₹2,879.3 crore, with a net debt-to-equity ratio of -0.14 as of December 31, 2025.

In the US, sales for Q3 FY2026 were ₹3,113.2 crore, up 54% from ₹2,022.1 crore in Q3 FY2025, accounting for 44% of global sales. The company received one ANDA approval from the US FDA and launched three products during the quarter.

Lupin now has 149 generic products in the US market and continues to be the third-largest pharmaceutical player in both the U.S. generic and total markets by prescriptions, according to IQVIA data for December 2025. Lupin leads in 55 of its marketed generics and ranks among the top three in 116 marketed products in the U.S.

India sales stood at ₹2,038.7 crore, up 5.6% from ₹1,930.5 crore in Q3 FY2025, contributing 29% to global sales. India region formulation sales rose 10.9% year-on-year. The company launched three brands across therapies during the quarter and ranks as the eighth-largest company in the Indian Pharmaceutical Market as per IQVIA MAT December 2025 data.

Also Read: Lupin's Nagpur injectable facility secures US FDA VAI classification

Other Developed Markets posted sales of ₹812.1 crore, up 10.8% from ₹732.8 crore, accounting for 11% of global sales. Emerging Markets recorded sales of ₹917 crore, up 42.4% from ₹644.1 crore, contributing 13% to global sales. Global API sales were ₹219.5 crore, down 24.1% from ₹289.1 crore, accounting for 3% of global sales.

R&D investment for the quarter stood at ₹535.2 crore compared to ₹441.2 crore in Q3 FY2025. Lupin received one ANDA approval during the quarter. Cumulative ANDA filings with the US FDA stood at 431 as of December 31, 2025, with 341 approvals to date. The company has 52 First-to-File filings, including 22 exclusive opportunities. Cumulative U.S. DMF filings stood at 93 as of December 31, 2025.

Shares of Lupin Ltd ended at ₹2,210.20, up by ₹1.45, or 0.066%, on the BSE.