By:- Thomas Abraham, Research Analyst, Mirae Asset Sharekhan
Lupin reported Q2FY27 results broadly in line with expectations. India continued to perform strongly, growing 14.7% YoY. US sales grew 9.3% YoY but moderated sequentially, in line with management’s earlier commentary on a lower run rate due to rising competition in mirabegron and tolvaptan, partly offset by new launches. The impact was felt mainly on margins, with EBITDA (excluding forex and other income) at 25.1%, down 614 bps YoY and 484 bps QoQ. Management had guided for high single-digit revenue growth and EBITDA margins of around 25% for FY27. Against H1 revenue growth of 23.1% and an EBITDA margin of 27.6%, this implies slower growth and lower margins in the range of 22–23% in H2. We believe the FY28 and beyond pipeline, particularly in complex generics and biosimilars, looks promising, and we await further clarity from management in the concall.
