Lupin Q3 FY26: Revenue up 24% to ₹7,168 cr

Results snapshot and why it matters

Lupin Limited reported its unaudited financial performance for the quarter ended December 31, 2025 (Q3 FY2026), with the Board taking the results on record on February 12, 2026. The quarter stood out for strong year-on-year growth across revenue and profit lines, alongside an expansion in operating profitability. The company also flagged that it delivered its “highest ever quarterly sales in the US”, while maintaining double-digit growth in India and other regions. For investors tracking large-cap Indian pharma, the quarter offered a clear read-through on pricing and volume momentum in the US business and steady growth in the domestic formulations franchise. The disclosures also included details on exceptional items and balance-sheet metrics such as working capital and net debt.

Revenue growth: sales move above ₹7,100 crore

Lupin’s sales for Q3 FY26 rose 26.4% year-on-year to ₹7,100.5 crore, compared with ₹5,618.6 crore in Q3 FY25. On a quarter-on-quarter basis, sales increased 3.9% from ₹6,831.4 crore in Q2 FY26. Including other operating income, total revenue from operations stood at ₹7,167.5 crore, up 24.3% year-on-year from ₹5,767.8 crore. Other operating income came in at ₹67.0 crore versus ₹149.2 crore a year earlier, and ₹216.1 crore in the preceding quarter. The reported mix points to core operating revenue driving the performance, even as other operating income moderated.

Profitability: EBITDA up 69% YoY, margins expand

EBITDA for the quarter rose 68.6% year-on-year to ₹2,376.6 crore, compared with ₹1,409.8 crore in Q3 FY25. EBITDA margin improved to 33.5% from 25.1%, an expansion of 840 basis points year-on-year. Sequentially, EBITDA was marginally lower than Q2 FY26 (₹2,431.3 crore), with margin easing from 35.6%. Lupin reported a forex loss of ₹52.4 crore for Q3 FY26, compared with a forex gain or loss of ₹9.8 crore in Q3 FY25, and a forex gain of ₹203.8 crore in Q2 FY26. Depreciation, amortization and impairment expense rose to ₹313.0 crore from ₹271.6 crore a year earlier.

Profit before tax, exceptional items, and PAT

Profit before tax and exceptional items was ₹1,948.6 crore in Q3 FY26, up 81.9% year-on-year from ₹1,071.3 crore. The company disclosed net one-time exceptional items of ₹426.6 crore for the quarter. After accounting for these, reported PBT was ₹1,522.0 crore, up 42.1% year-on-year but down 24.2% sequentially from ₹2,007.0 crore in Q2 FY26. Tax expense was ₹341.5 crore, and profit after tax (PAT) stood at ₹1,180.5 crore, up 37.4% year-on-year but down 20.5% quarter-on-quarter. Profit for the period was ₹1,175.6 crore, after accounting for non-controlling interest of ₹4.9 crore.

Cost structure: gross profit, employee cost, and expenses

Gross profit (excluding other operating income) was ₹5,222.4 crore versus ₹3,897.0 crore in Q3 FY25, with gross margin of 73.5%. Material cost was ₹1,878.1 crore, representing 26.5% of sales. Employee cost was ₹1,143.3 crore, or 16.1% of sales, compared with ₹984.4 crore (17.5% of sales) in Q3 FY25. Manufacturing and other expenses were reported at ₹1,936.6 crore, or 27.3% of sales, compared with ₹1,695.9 crore in Q3 FY25. These disclosures show higher absolute operating costs, with profitability still improving materially year-on-year.

US and India: regional performance highlights

The US business led the quarter’s momentum. Lupin reported US sales of ₹3,113.2 crore in Q3 FY26, up 54.0% from ₹2,022.1 crore in Q3 FY25. The company also reported the US sales figures as USD 350 million in Q3 FY26 versus USD 240 million in Q3 FY25, and said the US accounted for 44% of global sales. India sales were ₹2,038.7 crore, up 5.6% from ₹1,930.5 crore, contributing 29% of global sales. Lupin also stated that India region formulation sales rose 10.9% year-on-year in the quarter.

R&D, capex, and balance sheet positioning

Investment in R&D for the quarter was ₹535.2 crore, which the company said was 7.5% of sales. Capital expenditure for the quarter was ₹200.7 crore. Operating working capital stood at ₹7,948.1 crore as on December 31, 2025. Net debt was reported at ₹-2,879.3 crore as on December 31, 2025, with net debt to equity at -0.14. The negative net debt position indicates net cash, as presented in the company’s disclosure.

Board meeting, earnings call, and compliance actions

Lupin’s board meeting to consider and approve the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025 was scheduled and held on February 12, 2026. The company also disclosed an earnings call schedule for the unaudited Q3 FY26 results under Regulation 30 (LODR). Separately, the company announced a trading window closure starting January 1, 2026, with reopening on February 15, 2026, covering promoters, directors, key managerial personnel, designated persons, and their immediate relatives. The trading restriction was stated to remain until 48 hours after the results declaration.

ESOP allotment update and share capital impact

Lupin disclosed that it allotted 169,140 fully paid-up equity shares of face value ₹2 each under its Employee Stock Option Plan (ESOP) on January 27, 2026. Following the allotment, issued and paid-up capital was reported at ₹91,39,35,892, comprising 45,69,67,946 equity shares of ₹2 each. The ESOP issuance was approved by the Operations and Finance Committee and disclosed to stock exchanges under Regulation 30.

Key numbers at a glance

Regional sales disclosed for the quarter

Market data points and investor watchlist

The stock was shown at ₹2,309.10, down 0.10% on the day in the provided market snapshot. The same data set showed historical returns of -0.10% (1 day), -0.26% (5 days), -0.58% (1 month), +18.88% (6 months), +14.93% (1 year), and +117.69% (5 years). Separately, market commentary in the provided text noted that Indian markets recovered some Budget-day losses, with Lupin among the companies in focus.

Management commentary and what is next

Managing Director Nilesh Gupta said the company delivered another quarter of strong growth, led by the highest ever quarterly sales in the US and double-digit growth in India and other regions. He added that Lupin is on track to deliver a strong close to FY26. The next set of investor focus areas will typically be follow-through from the earnings call, including detail on regional drivers, margin trajectory after the quarter-on-quarter decline, and the nature of exceptional items disclosed during the period.