Lupin September-quarter profit falls 22% as costs rise

Lupin Limited reported consolidated net profit of Rs 1,155.3 crore for the quarter ended September 30, 2026, down 22.2% from Rs 1,484.83 crore a year earlier, because total expenses rose 24.2% to Rs 6,374.46 crore while revenue from operations increased 11.1% to Rs 7,827.26 crore.

Why did Lupin’s September-quarter profit fall?

Lupin’s September-quarter profit fell because expenses increased by more than income. Total income rose 11.4% year on year to Rs 7,954.05 crore, comprising Rs 7,827.26 crore of revenue from operations and Rs 126.79 crore of other income. Total expenses increased by Rs 1,243.92 crore from Rs 5,130.54 crore in the quarter ended September 30, 2025.

Profit before tax fell 21.3% to Rs 1,579.6 crore from Rs 2,006.97 crore. Total tax expense declined to Rs 424.3 crore from Rs 522.14 crore, but this was insufficient to offset the Rs 427.37 crore fall in profit before tax. Net profit after tax declined by Rs 329.53 crore.

Sales and income from operations rose 14% to Rs 7,785.52 crore. However, other operating income declined to Rs 41.74 crore from Rs 216.08 crore, while other income increased to Rs 126.79 crore from Rs 90 crore. This combination left total income growth below the increase in expenses.

Which Lupin costs rose in the September quarter?

Lupin’s employee-benefit costs and other expenses recorded the largest reported increases. Employee-benefit costs rose 28.8% to Rs 1,423.58 crore from Rs 1,105.56 crore, while other expenses rose 23.2% to Rs 2,438.14 crore from Rs 1,979.58 crore. Both grew faster than the 11.1% increase in revenue from operations.

Cost of materials consumed rose 15.1% to Rs 1,310.74 crore, and purchases of stock-in-trade increased 1.1% to Rs 733.18 crore. Depreciation, amortisation and impairment expense rose to Rs 485.9 crore from Rs 316.77 crore. Finance costs were Rs 105.71 crore, marginally below Rs 107.59 crore a year earlier.

Lupin recorded a net foreign-currency gain of Rs 87.01 crore, compared with a Rs 203.73 crore gain in the corresponding quarter, reducing the year-on-year benefit from currency movements. The group also recognised an impairment charge of Rs 24.68 crore for certain capital work-in-progress, intangible assets and intangible assets under development during the quarter.

How did Lupin perform against the June quarter?

Lupin’s revenue and profit both declined sequentially from the quarter ended June 30, 2026. Revenue from operations fell 5.4% from Rs 8,276.89 crore, while net profit fell 18.5% from Rs 1,416.98 crore. Total income declined from Rs 8,407.21 crore to Rs 7,954.05 crore.

Total expenses were broadly stable sequentially, decreasing to Rs 6,374.46 crore from Rs 6,389.83 crore. Profit before tax fell to Rs 1,579.6 crore from Rs 2,017.36 crore, while total tax expense declined to Rs 424.3 crore from Rs 600.38 crore. The lower tax charge did not prevent the sequential decline in net profit.

For the six months ended September 30, 2026, revenue from operations increased 20.9% to Rs 16,104.15 crore from Rs 13,315.85 crore. Profit before tax rose 5.1% to Rs 3,596.96 crore, but net profit declined 5% to Rs 2,572.28 crore as total tax expense increased to Rs 1,024.68 crore from Rs 716.22 crore.

How did Lupin’s pharmaceutical segment perform?

Lupin’s pharmaceuticals segment delivered higher revenue but lower segment profit in the September 2026 quarter. Pharmaceuticals revenue rose 10.9% to Rs 7,775.63 crore from Rs 7,010.32 crore a year earlier. It represented nearly all of the group’s Rs 7,827.75 crore total segment revenue before inter-segment eliminations.

The pharmaceuticals segment result fell 21.8% to Rs 1,613.84 crore from Rs 2,047.99 crore. The other segment generated Rs 52.12 crore of revenue, up from Rs 37.68 crore, while its loss narrowed to Rs 34.24 crore from Rs 41.02 crore. Consolidated profit before tax was Rs 1,579.6 crore after these segment results.

The six-month comparison differed from the single-quarter result. Pharmaceuticals revenue increased to Rs 16,009.98 crore from Rs 13,246.73 crore, while segment result rose to Rs 3,674.4 crore from Rs 3,505.83 crore. The other segment’s six-month loss narrowed to Rs 77.44 crore from Rs 83.32 crore.

What changed in Lupin’s cash position and acquisitions?

Lupin generated net operating cash flow of Rs 2,945.95 crore in the six months ended September 30, 2026, compared with Rs 2,902.79 crore a year earlier. Cash generated from operations increased to Rs 4,062.36 crore, but net income tax paid rose to Rs 1,116.41 crore from Rs 594.36 crore.

Investing activities used Rs 3,222.23 crore, compared with an outflow of Rs 2,842.25 crore in the prior-year period. Payments for business acquisitions, net of cash acquired, were Rs 2,039.73 crore, against Rs 135.75 crore a year earlier. Cash and cash equivalents fell to Rs 1,939.07 crore at September 30, 2026 from Rs 4,167.73 crore at March 31, 2026.

Effective April 1, 2026, Nanomi B.V., Lupin’s wholly owned subsidiary, acquired VISUfarma B.V. for Rs 2,090.27 crore. The filing records Rs 1,673.02 crore of acquired intangible assets, Rs 418.25 crore of deferred tax liability and Rs 654.94 crore of goodwill, provisionally accounted for based on an independent valuer’s report.

Financing activities used Rs 1,952.38 crore in the six months, compared with Rs 276.65 crore a year earlier. Lupin paid a final dividend of Rs 823.02 crore on August 6, 2026, following approval at its August 4 annual general meeting. It also spent Rs 370.12 crore to increase ownership in Multicare Pharmaceuticals Philippines Inc. and fund a share buyback.

Conclusion

Lupin’s September-quarter figures show that higher sales did not translate into higher profit, as expenses rose at more than twice the pace of revenue. Pharmaceuticals remained the dominant business, producing Rs 7,775.63 crore of quarterly segment revenue, but its segment result declined to Rs 1,613.84 crore from Rs 2,047.99 crore.

The next results will show whether the sequential fall from Rs 1,416.98 crore of June-quarter net profit persists and how acquisition-related balances develop. Lupin disclosed Rs 654.94 crore of provisional goodwill from the VISUfarma acquisition, while it continues to carry provisions for future settlements in similar antitrust matters after settling one matter for Rs 316.28 crore during the six months ended September 30, 2026.