Lupin Q2 Results: Net Profit Falls 22% to ₹1,155 Crore on US Settlement

Lupin Ltd’s consolidated net profit fell 22.2% to ₹1,155.3 crore for the quarter ended September, weighed down by a US antitrust settlement and higher expenses, even as sales rose 14%. The Lupin Q2 results, filed with the stock exchanges, compare with a profit of ₹1,484.8 crore a year earlier.

Revenue from operations increased 11.1% year on year to ₹7,827.3 crore, compared with ₹7,047.5 crore last year. The company’s sales were up 14% at ₹7,785.5 crore. EBITDA decreased 10.7% to ₹2,171.2 crore, and the EBITDA margin narrowed by 770 basis points to 27.9%.

Antitrust settlement weighs on Lupin Q2 results

The biggest headwind came from Lupin’s US arm, Lupin Pharmaceuticals Inc, which settled one of the antitrust cases it faces. The case was settled for ₹316.28 crore (USD 35.8 million) without any admission of liability or wrongdoing, according to a PTI report.

The company continues to maintain a provision for possible future settlements in similar cases. Costs also rose: employee expenses went up 28.8% to ₹1,423.6 crore, and manufacturing and other expenses rose 23.2% to ₹2,438.1 crore.

Depreciation, amortisation and impairment expenses increased 53.4% to ₹485.9 crore. Other operating income fell to ₹41.8 crore from ₹216.1 crore last year.

The sequential picture was also weaker. Revenue from operations declined 5.4% from ₹8,276.9 crore in the June quarter, and Lupin net profit fell 18.5% from the ₹1,417 crore the company booked in Q1 FY27.

For the first half of FY27, Lupin posted a consolidated net profit of ₹2,572.28 crore, 4.95% lower than the ₹2,706.29 crore it reported in the first half of last year, according to PTI.

US and India markets lift Lupin sales

The US remained Lupin’s biggest market. Lupin US sales grew 9.3% to ₹3,020.2 crore (about USD 317 million), accounting for 39% of global sales. The company received four ANDA approvals and one NDA 505(b)(2) approval from the US FDA during the quarter and launched one new product in the US.

India sales grew 14.7% to ₹2,383.6 crore, making up 31% of global sales. Other developed markets were the fastest-growing region, with sales up 45.7% to ₹1,182.3 crore.

Sales in emerging markets dropped 3.5% to ₹890.8 crore, while the global API business grew 20.2% to ₹308.6 crore.

Lupin raised its R&D spending to ₹618.1 crore, or 7.9% of sales, from ₹522.2 crore a year earlier. Capital expenditure for the quarter was ₹223 crore, and the company had net cash of ₹3,349 crore as of September 30, 2026.

As of September 30, Lupin had filed 429 ANDAs with the US FDA, of which 353 have been approved. It has 48 first-to-file opportunities, 21 of them exclusive, which can allow earlier market entry for generics.

Managing Director Nilesh Gupta struck a positive note on the half-year. “We delivered a strong first half of FY27, underpinned by solid growth across key markets and sustained profitability,” he said. “While we remain mindful of near-term challenges, we are confident in our long-term growth prospects.”

What the Lupin Q2 results mean for investors

The Lupin Q2 results show that sales are still growing by double digits, but a one-time legal settlement and higher costs are weighing on net income. The question is what happens to margins in the second half, once the settlement charge is no longer in the numbers.

Some litigation risk remains. Lupin continues to face antitrust litigation in the US, and the provision it holds for similar cases suggests further settlements cannot be ruled out.

For Indian business leaders, Lupin’s quarter is a reminder that good demand in the US and India does not guarantee profit growth when legal and operating expenses rise faster than revenue.

Also Read: ITC Q2 Results: Net Profit Falls 18.7% to ₹4,168 Crore on Cigarette Tax

The company’s results filings are available on its investor relations page. For more September-quarter earnings from India Inc, read our reports on Hindustan Unilever’s Q2 results and Reliance Industries’ Q2 results.