Lupin Q1 results driven by strong US sales; stock slips from day's high

Shares of Lupin Ltd. are trading off day's high on Friday, August 7, after the drugmaker reported a stronger-than-expected set of earnings for the June quarter (Q1FY27), driven by broad-based growth across geographies and improved profitability.

The pharmaceutical company reported a 16.1% year-on-year increase in net profit to ₹1,415 crore, compared with ₹1,219 crore in the year-ago quarter.

Revenue from operations surged 33.3% YoY to ₹8,217 crore from ₹6,164 crore, supported by healthy growth across key markets.

Operating performance was even stronger, with EBITDA rising 47.3% to ₹2,390 crore from ₹1,623 crore a year earlier. Consequently, EBITDA margin expanded by 280 basis points to 29.1%, compared with 26.3% in Q1FY26.

Geographically, the US business remained the largest contributor, with revenue rising to $366 million from $282 million a year ago. Domestic sales in India increased 14% to ₹2,379.6 crore, while other developed markets recorded 48.3% growth to ₹1,149.4 crore.

Emerging markets also delivered strong momentum, with revenue climbing 51.7% to ₹989.7 crore.

Lupin invested ₹607.7 crore, or 7.4% of sales, in research and development during the quarter, while capital expenditure stood at ₹278.6 crore.

Commenting on the results, Managing Director Nilesh Gupta said the company began FY27 on a strong note, supported by robust growth across key markets and improved profitability. He added that Lupin's continued focus on execution, operational excellence, technology and innovation would help drive sustainable and profitable long-term growth.

Brokerage firm Macquarie has an 'Outperform' rating on Lupin with a price target of ₹2,750. The brokerage said the company reported a strong first quarter, with revenue, EBITDA and profit after tax (PAT) exceeding its estimates by 7%, 23% and 17%, respectively.

Lupin shares ended Thursday's session marginally higher at ₹2,388.30. The stock has gained around 14% so far in 2026 and is up about 10% over the past six months.

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