Lupin Shares Rebound 6% After Strong Q3 Earnings, Stock Up 30% YoY

Lupin reported a 38.8% YoY rise in Q3 FY25 net profit to ₹858.9 crore, with revenue growing 10.6% to ₹5,618.6 crore. EBITDA surged 32.1% to ₹1,409.6 crore, expanding margins to 25.1%, driven by strong U.S. and India sales. Despite an initial dip, Lupin’s stock rebounded 6% and has gained 30% over the past year.

CONTENTS:

• Lupin Shares Rebound 6% After Strong Q3 FY25 Results
• Lupin Shares Decline Despite 39% Surge in Q3 Profit
• Lupin Q3 Results: Net Profit Rises 39% YoY to ₹859 Crore; EBITDA Margin Expands to 25.1%

Lupin Shares Rebound 6% After Strong Q3 Earnings, Stock Up 30% YoY

Lupin Shares Rebound 6% After Strong Q3 FY25 Results

Lupin’s share price rebounded nearly 6% from its intraday low following strong Q3 FY25 results. The stock, which initially dropped 3.2% to ₹2,000.10, later climbed to ₹2,116, marking a 2.4% gain from its previous close.

The company’s consolidated net profit surged 38.8% year-on-year to ₹858.9 crore, while revenue grew 10.6% to ₹5,618.6 crore. EBITDA rose 32.1% to ₹1,409.6 crore, with margins expanding to 25.1%.

North America sales saw a 12.3% increase, contributing 38% to total revenue, with U.S. sales reaching $235 million. Lupin remains the third-largest player in the U.S. generics market.

In India, formulation sales grew 12% to ₹1,930.5 crore, accounting for 34% of global sales. The company introduced 11 new brands over nine months.

Lupin’s stock is now 12% below its January peak of ₹2,403.45 but has surged 42% from its 52-week low of ₹1,493.75 in June 2024. Over the past year, it has gained 30%, though it has declined slightly in February after an 11.7% drop in January.

Lupin Shares Decline Despite 39% Surge in Q3 Profit

Lupin Shares Rebound 6% After Strong Q3 Earnings Lupin’s shares declined despite the company reporting a nearly 40% rise in Q3 profits. On February 12, the stock fell 3% to an intraday low of ₹1,999.45 before recovering slightly, trading 0.22% lower at ₹2,062.95 as of 10:40 AM.

For the quarter, Lupin posted a profit after tax of ₹8,589 crore, marking a 38.8% increase from ₹6,187 crore in the previous year. Total revenue surged 102.7% to ₹57,677 crore compared to ₹51,974 crore in the same period last year.

EBITDA rose 25.1% year-on-year to ₹14,096 crore, up from ₹10,673 crore, with the EBITDA margin expanding slightly to 21.1% from 21% in the previous year.

Despite the stock’s dip today, it has gained 29.38% over the past year.

Lupin Q3 Results: Net Profit Rises 39% YoY to ₹859 Crore; EBITDA Margin Expands to 25.1%

Lupin reported a 38.8% year-on-year (YoY) increase in consolidated net profit (PAT) for Q3 FY25, reaching ₹858.9 crore, compared to ₹618.7 crore in the same period last year. Revenue for the quarter grew 10.6% YoY to ₹5,618.6 crore from ₹5,079.9 crore.

Strong EBITDA Growth
EBITDA rose 32.1% YoY to ₹1,409.6 crore, up from ₹1,067.3 crore in Q3 FY24. The EBITDA margin expanded 408 basis points (bps) to 25.1%, compared to 21% in the previous year.

Operational Costs and R&D Investment

• Employee benefits cost accounted for 17.5% of sales at ₹984.4 crore, compared to ₹889.2 crore in Q3 FY24.
• Manufacturing and other expenses were 30.2% of sales, totaling ₹1,695.9 crore, up from ₹1,560.1 crore.
• Research and development (R&D) expenses stood at ₹434.4 crore, making up 7.7% of total sales.

Balance Sheet Highlights (as of December 31, 2024)

• Operating working capital: ₹7,070 crore
• Capital expenditure: ₹124.1 crore
• Net debt: ₹102.7 crore
• Net debt-equity ratio: 0.01

Management Commentary
Lupin’s Managing Director, Nilesh Gupta, emphasized the company’s strong performance, particularly in the U.S. market, where new product launches contributed significantly to revenue growth. He highlighted Lupin’s commitment to sales expansion, operational efficiencies, and regulatory compliance to sustain this momentum in future quarters.

Company Overview
Headquartered in Mumbai, Lupin is a global pharmaceutical company specializing in generic and branded medicines, biotechnology products, and active pharmaceutical ingredients (APIs). Key therapeutic areas include anti-infectives, diabetology, asthma, tuberculosis, and pediatrics.

Stock Performance
Lupin’s share price has gained 30% over the past year, reflecting strong market confidence in its financial growth and strategic initiatives.