Lupin (LPC IN) – Q2FY27 Result Update – US to remain weak in H2 – ACCUMULATE
Published on 05 Nov 2026
Lupin’s (LPC) Q2FY27 EBITDA stood at INR 19.6bn (down 8% YoY); in line with our estimates. LPC peak margins are behind which were aided by better product mix in US, forex benefit, domestic formulations regaining momentum; some of these benefits will start seeing wearing away. Currently 3 products (gTolvaptan, gMirabegron and gSpiriva) contribute ~50% to total EPS. Competition in gTolvaptan has increased whereas competition is likely to intensify in gMirabegron Q3FY27 onwards. 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 FY28E and FY29E EPS stands cut by 2-5%. We maintain our “Accumulate” rating with TP of INR 2,250 (23x Sept 2028E EPS).
