LUPIN - Lupin Ltd Share Price

In the Q2 FY2026 earnings call, management expressed a highly optimistic outlook for Lupin Limited, highlighting a record performance with total revenue from operations exceeding INR 7,048 crores and EBITDA surpassing INR 2,138 crores. The EBITDA margin expanded to 31.3%, reflecting a 750 basis points YoY improvement. Management noted this quarter represents the 13th consecutive quarter of year-over-year growth, with significant contributions from the U.S. market where sales grew by 47% YoY.

Key forward-looking points include:

1. U.S. Market Growth: The U.S. business is expected to maintain momentum, with an anticipated revenue of USD 275 million to USD 300 million per quarter post-regulatory exclusivity for Tolvaptan. Management targets to sustain over USD 1 billion annual revenue for FY27.

2. New Product Launches: Upcoming launches include Risperdal Consta® and Pegfilgrastim. The plan includes securing approvals for several complex injectable products and expanding biosimilars in the U.S. market, aiming to have five products by FY30.

3. India Business Performance: Management confidently expects domestic growth to outperform the Indian Pharmaceutical Market (IPM) by 1.2 to 1.3 times, with over 80 new product launches planned.

4. Acquisition Impact: The planned acquisition of VISUfarma is expected to enhance margins and growth, aiming for a global specialty business to reach USD 150 million in revenue next year.

5. Capital Allocation: Lupin plans to invest in expanding its specialty portfolio, with a significant allocation of INR 250 million aimed at enhancing production capacity for respiratory products in the U.S.

6. R&D Focus: The R&D spending is projected at 7.5% of sales, with an increased focus on complex and specialty drugs, alongside strengthening the innovation pipeline.

Management maintains a disciplined approach while advancing in financial growth, reinforcing a long-term vision toward sustainability and patient trust in the healthcare space.

1. Kunal Dhamesha: "How do we see this USD 315 million number moving in the coming quarters? What are the key launches in FY26 and FY27?"

   Vinita Gupta: "We anticipate a decrease to USD 275-300 million quarterly due to market erosion from upcoming competition. However, we are optimistic about sustaining a USD 1 billion annual figure. Upcoming launches include Risperdal Consta® and Pegfilgrastim, with plans for several biosimilars and injectables ramping up."

2. Kunal Dhamesha: "What should we look forward to regarding EBITDA margin guidance for FY27?"

   Ramesh Swaminathan: "We expect a reduction in margins in H2 FY26 but aim to maintain FY27 margins around 24%-25%, despite increasing R&D expenditures. Growth opportunities in India could support these margins."

3. Kunal Dhamesha: "Have we submitted a response to the inspection findings at the Nagpur facility, and how crucial is this facility for future growth?"

   Nilesh Gupta: "Yes, we've submitted our response to the recent audit. While we're not satisfied with the observations, we believe they're addressable. The facility is vital for our injectable and biotech products, and we're committed to its compliance."

4. Bino Pathiparampil: "Could you compare Q2 revenue of Tolvaptan QoQ and confirm if Mirabegron is maintaining its growth rate?"

   Vinita Gupta: "While we don't provide specific product guidance, Tolvaptan significantly contributed to Q2. Mirabegron has also shown growth QoQ, maintaining a strong performance."

5. Shyam Srinivasan: "Can you explain the strategic rationale behind the VISUfarma acquisition?"

   Vinita Gupta: "The acquisition broadens our European presence, adding key markets in Italy and Spain. It strengthens our ophthalmology franchise, allowing us to leverage a portfolio for more diverse product launches across Europe."

6. Saion Mukherjee: "What's driving remarkable growth in emerging markets like Brazil and South Africa, and is this sustainable?"

   Vinita Gupta: "We see growth opportunities in Europe and Latin America, expecting to sustain double-digit growth driven by strong product launches, particularly in our diabetes franchise in Brazil."

7. Neha Manpuria: "How should we view gross margins for the full year based on current quarterly performance?"

   Ramesh Swaminathan: "Current margins are impacted by specific products, including Tolvaptan. While future slight declines may occur, we anticipate an EBITDA margin of about 24%-25%, balancing gross margin adjustments with operating leverage."

8. Vishal Manchanda: "Can you quantify annual spending on biosimilar development? Are we currently burning money in this area?"

   Vinita Gupta: "Yes, we're investing significantly into biosimilars. The burn is manageable, especially considering partnerships for many products, enabling us to remain positive in future years regarding profitability."