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Lupin, a prominent pharmaceutical company, experienced a significant surge in its share price following the release of its robust financial results for the third quarter of fiscal year 2025 (Q3 FY25). The initial market reaction was a dip, with the stock price falling by 3.2 percent to an intraday low of ₹2,000.10. However, this negativity was short-lived, as the strong performance revealed in the quarterly report quickly reversed the trend. The stock ultimately rebounded by approximately 6 percent, reaching a day's high of ₹2,116, showcasing the market's confidence in the company's positive trajectory.
The impressive financial performance reported by Lupin underscores its continued growth and strength within the pharmaceutical sector. The company recorded a consolidated net profit of ₹858.9 crore for Q3 FY25, marking a substantial 38.8 percent year-on-year increase compared to the ₹618.7 crore achieved in the same quarter of the previous fiscal year. This significant growth was accompanied by a 10.6 percent rise in revenue, reaching ₹5,618.6 crore, exceeding the ₹5,079.9 crore generated in Q3 FY24. Furthermore, the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) experienced a remarkable 32.1 percent year-on-year surge, climbing from ₹1,067.3 crore to ₹1,409.6 crore. The EBITDA margin also expanded considerably, increasing by 408 basis points (bps) to 25.1 percent, a marked improvement from the 21 percent recorded in Q3 FY24. These figures demonstrate a strong operational efficiency and profitability across various facets of the company's operations.
A key driver of Lupin's outstanding Q3 performance was the exceptional growth witnessed in its North American sales. This region showcased a 12.3 percent year-on-year increase, reaching ₹2121.3 crore in Q3 FY25, compared to ₹1888.5 crore in Q3 FY24. This robust performance accounted for a significant 38 percent of Lupin's total global sales. The company's success in North America was further highlighted by its US sales, which reached $235 million, up from $212 million in Q3 FY24. This strong growth is attributable to a number of factors, including the company's strategic focus on new product launches and its continued success in securing regulatory approvals. During the quarter, Lupin received six Abbreviated New Drug Application (ANDA) approvals from the U.S. Food and Drug Administration (FDA) and launched two new products, expanding its total generics portfolio in the U.S. to 163 products. This significant market presence solidified Lupin's position as the third-largest pharmaceutical player in both the U.S. generics market and the overall U.S. market by prescription volume, showcasing the company's robust competitiveness and market penetration.
Lupin's performance in its domestic market, India, also contributed significantly to the overall positive results. India formulation sales for Q3 FY25 reached ₹1930.5 crore, representing a 12 percent year-on-year growth from ₹1725 crore in Q3 FY24, and accounted for 34 percent of Lupin's global sales. The India Region Formulation segment registered a 5.8 percent growth compared to Q3 FY24, further demonstrating the company's ability to maintain and expand its market share within its domestic market. This growth was driven by the successful launch of 11 new brands across various therapeutic areas during the nine-month period. Lupin's strong performance in India solidified its position as the seventh-largest pharmaceutical company in the Indian pharmaceutical market, according to IQVIA MAT Dec’24 data. The consistent performance across both international and domestic markets underpins the company's diversified revenue streams and its resilience in different market dynamics.
The management's outlook remains positive, with Nilesh Gupta, Managing Director of Lupin Limited, emphasizing the company's sustained growth in both revenue and EBITDA. He highlighted the crucial role of U.S. revenues, driven by the scaling up of new products, as a key driver of overall growth. He also acknowledged the strong performance from the India and EMEA (Europe, Middle East, and Africa) regions over the nine-month period. Gupta expressed confidence in maintaining this positive momentum in the coming quarters, underpinned by the company's strategies focusing on sales growth, commercial and operational efficiencies, and robust compliance practices. This positive outlook, combined with the strong Q3 results, further reinforces investor confidence in Lupin's future prospects.
The stock price trend reflects the market's positive response to the Q3 results. From its previous close, the stock price increased by as much as 2.4 percent to a day's high of ₹2116. This positive movement brings the stock price within just 12 percent of its peak of ₹2,403.45, which was reached in January 2025. Furthermore, the stock has experienced a remarkable 42 percent surge from its 52-week low of ₹1,493.75, recorded in June 2024. This significant recovery demonstrates the market's confidence in the company's turnaround and its long-term growth potential. The combination of strong financial performance, positive management outlook, and significant stock price appreciation paints a picture of sustained growth and success for Lupin in the pharmaceutical industry.
Source: Earnings Impact! Lupin share price rebounds around 6% from today’s low after strong Q3 results 2025