Lupin (LPC IN) – Q1FY27 Result Update – Growth to take hiatus – ACCUMULATE
Published on 10 Aug 2026
Lupin’s (LPC) Q1FY27 EBITDA stood at INR 24.6bn (up 50% YoY); 15% beat to our estimates on the back of healthy sales. LPC saw remarkable turnaround in profitability over last 3 years with ~5x jump in EBITDA over FY23-26 aided by better product mix, continued niche launches in the US, clearance from USFDA for facilities, domestic formulations regaining momentum and cost optimization measures. Currently 3 products (gTolvaptan, gMirabegron and gSpiriva) contribute ~50% to total EPS. These products will face competition from Q2FY27/FY28. Though Lupin has some niche pipeline including 505 (b) (2) opportunity and biosimilars to compensate we expect Lupin PAT to decline over FY26-28E. Our FY27E and FY28E EPS stands cut by 6% led by higher depreciation charges. We maintain our “Accumulate” rating with TP of INR 2,500 (25x FY28E EPS).
