Q2 FY27 results analysis · November 03, 2026
Lupin Ltd Q2 FY27 Results Analysis: PAT Falls 21.83%, Revenue Grows 11.06%
−21.8%PAT year on year, Rs. 1,155.30 Cr
Source: Quarterly results filing (NSE)
Quick summary
Lupin Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 7,827.26 Cr (+11.06% YoY) and PAT growth of -21.83% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 04, 2026 |
|---|---|
| Revenue (Q2) | Rs. 7,827.26 Cr (+11.06% YoY) |
| PAT (Q2) | Rs. 1,155.30 Cr (-21.83% YoY) |
| EBITDA margin | 25.14% (-615 bps YoY) |
| EPS (Q2) | Rs. 25.27 (-21.91% YoY) |
Quarter Snapshot
Q2 FY27 revenue grew 11.06% YoY with the EBITDA margin of 25.14% landing inside management's guided 24-25% band, while PAT fell 21.83% YoY against the 31.29%-margin peak base — a moderation management pre-flagged. Cash conversion is intact (CFO 1.15x PAT), the balance sheet remains net cash, and the VISUfarma acquisition adds a 53.39% D&A step-up. Full-year margin delivery now depends on H2 cost discipline and the pace of US competitive erosion.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| EBITDA margin | "EBITDA margin likely compresses from Q1's 30.0% toward... management's cautious 24–25% FY27 band" | 25.14% (from 29.98% Q1) | Played out |
| Gross margin | "Q1's 74.6% was shielded by pre-inflation inventory" — normalization expected | 74.21% vs 74.57% Q1 — modest | Played out |
| US revenue | "behind... test is whether the print lands inside that guided band (USD 250–280 Mn)" | Regional split not disclosed in the filing | Not observable |
| India revenue | "ahead" on double-digit IPM | Regional split not disclosed | Not observable |
| Overall trajectory | Record Q1, then moderation ("We anticipate some moderation... especially in the U.S.") | Revenue −5.43% QoQ; EBITDA −20.54% QoQ | Played out |
| Mirabegron settlement drag continuing in Q2 | "the above-EBITDA portion... continues" | Consolidated exceptional nil in Q2; Rs.316.28 Cr H1 settlement absorbed against the FY26 provision — no incremental Q2 P&L charge | Contradicted |
| USD/INR tailwind | ~1.2% quarterly depreciation aiding realizations | Net FX gain Rs.87.01 Cr in Q2 (vs Rs.13.90 Cr loss in Q1) | Played out directionally |
| US generic tariff | Neutral (generics excluded per the pre-call note, web-sourced, dated) | No tariff impact disclosed in the filing — no adverse signal | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 revenue growth: high single-digit | Q1 FY27 earnings call ("reiterate our earlier guidance of high single-digit revenue growth") | H1 +20.94% YoY; Q2 +11.06% YoY | On Track |
| FY27 EBITDA margin ~25% (24–25%), company basis | Q1 FY27 earnings call ("EBITDA margins of around 25%"; CFO: "we'd be able to maintain it between 24%-25%") | Q2: 25.14% company basis (metric matched to management's definition) | Met |
| "Some moderation in performance during the remainder of the year, especially in the U.S. from increased competitive intensity on our two major products" | Q1 FY27 earnings call | Revenue −5.43% QoQ, EBITDA −20.54% QoQ, margin 29.98%→25.14% — direction; the US attribution is not separable from the filing | Confirmed |
| 16 consecutive quarters of YoY revenue growth (claimed through Q1) | Q1 FY27 earnings call | Q2 revenue +11.06% YoY — streak would extend | Confirmed |
| Margin guided to be "a tad lower than what it is today" (24–25% band) | Q1 FY27 earnings call (CFO) | Landed at 25.14%, inside band | Confirmed |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|---|
| EBITDA margin, company basis (%) | 31.29 | 31.1 | 29.4 | 29.98 | 25.14 |
| R&D (% of net sales) | 7.6 | 7.5 | 8.0 | 7.4 | Not disclosed |
| Net cash, company basis (Rs. Cr) | — | 2,879 | 4,636 | 2,831 | Not disclosed |
| Operating working capital (days) | — | 101 | — | 90 | Not disclosed (my BS-based construction: ~99 days on 6M sales — not comparable to the company's basis) |
Key Investment Insights
Key Positives
- Total revenue grew 11.06% YoY to Rs.7,827.26 Cr; net sales excluding other operating income grew 13.96% YoY; H1 FY27 revenue up 20.94% YoY
- Q2 company-basis EBITDA margin of 25.14% landed inside management's guided 24-25% FY27 band, delivering the guided compression from Q1's 30.0% almost exactly
- 6M CFO of Rs.2,945.95 Cr is 1.15x consolidated 6M PAT; FCF after capex of Rs.2,253.85 Cr
- Rs.549.58 Cr of debt repaid in H1; balance sheet remains net cash (Rs.2,047.20 Cr on the stated computation)
- Antitrust matter settled in H1 for Rs.316.28 Cr (USD 35.8 Mn) against the FY26 provision of Rs.581.69 Cr with no new P&L charge this quarter
- Net worth grew Rs.1,537.78 Cr (+6.83%) over H1 even after the Rs.823.02 Cr dividend payment
- 'Others' segment loss narrowed to Rs.34.24 Cr from Rs.41.02 Cr YoY
Risk Factors
- PAT attributable to owners declined 21.83% YoY to Rs.1,155.26 Cr and company-basis EBITDA fell 8.43% YoY against the 31.29%-margin peak base
- Company-basis EBITDA margin compressed to 25.14% from 31.29% YoY and 29.98% QoQ
- Employee costs (+28.77% YoY) and other expenses (+23.16% YoY) grew well ahead of revenue
- D&A jumped 53.39% YoY to Rs.485.90 Cr on the VISUfarma acquisition, a structural drag on PAT that does not touch EBITDA
- Standalone reported PAT was a loss of Rs.5.91 Cr after a Rs.76.93 Cr investment diminution exceptional
- Q2 exit margin of 25.14% suggests H2 will run at or slightly below the guided band, making the full-year ~25% outcome dependent on H2 cost discipline and US erosion pace
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