Lupin shares in focus after US sales beat expectations but profitability impacted

Shares of Lupin Ltd. will be in focus 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.