Posted on February 12, 2025, by Niftynews
Lupin share prices have surged by nearly 6% after the pharmaceutical company posted impressive financial results for the quarter ended December 2024 (Q3 FY25). The stock initially saw a dip of 3.2%, reaching an intra-day low of ₹2,000.10 early in the day. However, the Lupin share price quickly recovered, climbing back to ₹2,116, marking a 2.4% increase from its previous close and nearly reaching its peak of ₹2,403.45, recorded in January 2025.
Lupin Impressive Financial Performance in Q3 FY25
Lupin net profit for Q3 FY25 stood at ₹858.9 crore, reflecting a substantial 38.8% year-on-year increase compared to ₹618.7 crore in the same quarter last year. This sharp rise in profitability is attributed to robust sales growth across various regions, strong operational efficiencies, and a favorable pricing environment.
In addition to the rise in profit, the company reported a 10.6% growth in revenue, reaching ₹5,618.6 crore for the quarter, up from ₹5,079.9 crore in Q3 FY24. The company’s EBITDA also saw a notable increase, rising by 32.1% to ₹1,409.6 crore. This strong EBITDA performance resulted in a significant expansion of the EBITDA margin, which grew by 408 basis points (bps) to 25.1%, compared to 21% in the same quarter last year.
Growth Drivers: North America and India
One of the key contributors to Lupin’s strong financial performance and the subsequent rebound in the Lupin share price is the company’s continued growth in North America. The company’s North America sales for Q3 FY25 amounted to ₹2,121.3 crore, marking a 12.3% increase compared to ₹1,888.5 crore in Q3 FY24. North America now represents 38% of Lupin’s total global sales.
The company also reported U.S. sales of $235 million for the quarter, which is an increase from $212 million in the same period last year. As part of its ongoing efforts to expand its product portfolio, Lupin received six Abbreviated New Drug Application (ANDA) approvals from the U.S. FDA during the quarter. This brings the total number of generics in its U.S. portfolio to 163 products.
Lupin Continued Strength in India
The India formulation segment also showed promising growth, further boosting the Lupin share price. Sales in India reached ₹1,930.5 crore for Q3 FY25, reflecting a 12% year-on-year increase compared to ₹1,725 crore in Q3 FY24. This segment contributed to 34% of Lupin’s global sales during the quarter.
The company’s India market performance was bolstered by the launch of 11 new brands across various therapeutic areas, underscoring Lupin commitment to expanding its product offerings. Additionally, the company holds the position of the seventh-largest pharmaceutical company in the Indian Pharmaceutical Market, according to the latest IQVIA MAT Dec’24 data.
Strategic Investments and R&D Focus
Lupin’s financial success can also be attributed to its continued investment in research and development (R&D). The company spent ₹434.4 crore on R&D during Q3 FY25, which represents 7.7% of its sales for the quarter. This emphasis on R&D supports the company’s long-term growth strategy, as it continues to expand its generics portfolio and develop new products in key markets like the U.S. and India.
Management Commentary and Outlook for Lupin Share Price
Commenting on the results, Nilesh Gupta, Managing Director of Lupin, expressed confidence in the company’s sustained growth. He stated, “Our third-quarter results highlight our continued strength, with both revenue and EBITDA showing sustained growth. U.S. revenues, led by building scale in new products, have been pivotal for our growth, supported by a strong nine-month performance from our India and EMEA regions. We look forward to maintaining this momentum in the ensuing quarters, backed by growth in sales, commercial and operating efficiencies, and strong compliance.”
Lupin’s ability to maintain strong growth across regions and effectively manage its cost structure suggests that the Lupin share price could continue to show resilience, even amid broader market volatility.
Stock Price Performance: Recovery from 52-Week Low
From its 52-week low of ₹1,493.75, recorded in June 2024, the Lupin share price has experienced a remarkable 42% recovery. After rising 2.4% from its previous close, the stock reached a high of ₹2,116, just 12% away from its peak of ₹2,403.45 set in January 2025.
Despite a slight 1% drop in February, the Lupin share price has increased by approximately 30% over the last year, demonstrating the company’s strong growth trajectory and solid investor sentiment. The recent rebound indicates that investors are confident in Lupin’s ability to deliver solid earnings and growth in the coming quarters.
Key Takeaways:
- Lupin Share Price increased by 6% after the company reported impressive Q3 FY25 results.
- Net profit grew by 38.8%, driven by strong sales in North America and India.
- North America sales grew by 12.3%, accounting for 38% of total global sales.
- The Lupin share price has risen by 42% from its 52-week low and is nearing its January peak.
