Pharma major Lupin has delivered double-digit revenue growth in the September quarter, but a sharp rise in expenses weighed on its bottom line, pulling consolidated net profit down 22.2% year-on-year.

 

The company reported sales of Rs 7,785.5 crore for Q2 FY27, up 14% from Rs 6,831.4 crore in the corresponding quarter last year. However, net profit (PAT) fell to Rs 1,155.3 crore from Rs 1,484.8 crore, reflecting pressure on operating profitability.

 

The earnings picture was equally challenging sequentially. Revenue declined 5.3% from Rs 8,217.2 crore in Q1 FY27, while net profit dropped 18.5% from Rs 1,417 crore.

 

EBITDA, including forex and other income, declined 10.7% year-on-year to Rs 2,171.2 crore from Rs 2,431.3 crore. The EBITDA margin contracted sharply by 770 basis points to 27.9%, compared with 35.6% in Q2 FY26.

 

The pressure on margins comes amid a significant increase in operating expenses. Personnel costs rose to Rs 1,423.6 crore from Rs 1,105.6 crore a year ago, accounting for 18.3% of sales. Manufacturing and other expenses climbed to Rs 2,438.1 crore from Rs 1,979.6 crore, representing 31.3% of sales.

 

Despite the cost pressures, Lupin posted a 15.4% increase in gross profit to Rs 5,777.4 crore, against Rs 5,006.6 crore in the year-ago quarter. Gross margin stood at 74.2%.

 

Profit before tax (PBT), however, declined 21.3% to Rs 1,579.6 crore from Rs 2,007 crore in Q2 FY26, accounting for 20.3% of sales.

 

Lupin continued to invest in research and development, spending Rs 618.1 crore during the quarter, equivalent to 7.9% of sales.

 

Commenting on the performance, Nilesh Gupta, Managing Director, Lupin Limited, said "We delivered a strong first half of FY27, underpinned by solid growth across key markets and sustained profitability. While we remain mindful of near-term challenges, we are confident in our long-term growth prospects, supported by the strength of our portfolio, continued investments in R&D and commercial capabilities, and our unwavering focus on disciplined execution."

 

On the balance sheet front, operating working capital stood at Rs 7,542 crore as of September 30, 2026, with operating working capital days at 87.

 

Capital expenditure during the quarter stood at Rs 223 crore.

 

Lupin reported net debt of negative Rs 3,349 crore as of September 30, 2026, indicating a net cash position. Its net debt-to-equity ratio stood at negative 0.14.