1. Opening Hook
While the world debates Ozempic and obesity, Lupin quietly flexed its pharma muscles — smashing revenue and margin records like it was 2008 again (but without the recession). From Tolvaptan exclusivity to biosimilar bragging rights, the company’s management clearly came caffeinated. But before you clap — there’s also FDA love letters, margin math gymnastics, and a ₹250 crore US capex that sounds brave in this economy.Hold tight — the real spice lies in the biosimilar dreams and those semaglutide ambitions. Read on, it gets juicier (and slightly injectable). 😏
2. At a Glance
- Revenue up 24% YoY:CFO swears it’s real growth, not Excel black magic.
- EBITDA ₹2,138 crore (up 63% YoY):Margin party hit 31.3%, first time ever.
- Gross margin at 73.3%:That’s not margin expansion, that’s levitation.
- India up 3.4%:When “muted” is the new normal.
- US up 47%:Tolvaptan monopoly still printing dollars.
- Net cash ₹1,665 crore:CFO finally slept well.
- Stock up 8%:Traders heard “record quarter,” ignored “FDA OAI.”
3. Management’s Key Commentary
“This is our 13th consecutive quarter of YoY growth.”(Translation: Lucky 13 — unless FDA shows up again. 🧿)
“Margins expanded 750 bps YoY to 31.3%.”(Translation: Tolvaptan exclusivity is the best diet plan for bloated P&Ls.)
“India grew 3.4%, core business 8.8%.”(Translation: Domestic still snoozing, but chronic keeps the lights on.)
“VISUfarma will give us a European specialty franchise.”(Translation: Fancy eye drops to help Europe see Lupin’s brand again.)
“We’ll have five biosimilars by FY30.”(Translation: Five ways to fight Amgen and lose sleep simultaneously.)
“R&D is 7.5% of sales.”(Translation: Burning cash to keep Wall Street interested.)
“We’re working on green propellants for inhalers.”(Translation: Saving the planet, one puff at a time 🌍.)
“FDA gave VAI for one unit, OAI for another.”(Translation: One gold star, one detention slip — balanced scorecard.)
4. Numbers Decoded
| Metric | Q2FY26 | Q2FY25 | YoY Change | Sarcastic Take |
|---|---|---|---|---|
| Revenue (₹ Cr) | 7,048 | 5,670 | +24% | Tolvaptan exclusivity printing cash 💰 |
| US Sales (USD Mn) | 315 | 223 | +41% | Uncle Sam’s scripts on steroids |
| EBITDA (₹ Cr) | 2,138 | 1,308 | +63% | Margin yoga actually worked |
| EBITDA Margin | 31.3% | 23.8% | +750 bps | CFO deserves a medal |
| R&D Spend (₹ Cr) | 509 | 448 | +13% | Because biosimilars don’t invent themselves |
| Net Cash (₹ Cr) | 1,665 | 310 | 5x | Someone call the debt collectors — to celebrate |
| ROCE | 25% | 17% | — | Return on Caffeine Employed |
Punchline:Tolvaptan made the quarter; now Lupin must prove it wasn’t a one-drug wonder.
5. Analyst Questions
On Tolvaptan:“USD 315M this quarter — what next?”→ “Expect erosion, but still $275–300M/quarter.”(Translation: Exclusivity ending, but we’ll milk what’s left 🍼.)
On Margins:→ “FY26 EBITDA 25–26%; FY27 ~24–25%.”(Translation: Guidance yoga: lower, but with optimism.)
On VISUfarma deal:→ “Adds Europe footprint and ophthalmology edge.”(Translation: Because eye-care sounds classier than generics.)
On Semaglutide:→ “Launching in India, maybe South Africa next.”(Translation: Peptide fever is contagious.)
On FDA issues:→ “Nagpur injectables: not happy, but fixable.”(Translation: Translation = “pray for VAI.” 🙏)
6. Guidance & Outlook
FY26 EBITDA margin guidance nudged up to25–26%, with FY27 expected at24–25%— “because R&D is eating our profits, but we’re calling it
