Lupin shares advance 5% after Q1 results; should you buy in?

Lupin shares rose 5 per cent after the firm posted a 52 per cent year-on-year increase in net profit in Q1 FY26

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Shares of Lupin gained nearly 5 per cent on Thursday as analysts remained bullish after the firm posted a 52 per cent year-on-year increase in net profit in the first quarter of the current financial year (Q1FY26)

 

The pharma major's stock rose as much as 4.65 per cent during the day to ₹1,937.9 per share, the biggest intraday rise since April 28 this year. The stock pared gains to trade 3.8 per cent higher at ₹1,919 apiece, compared to a 0.32 per cent decline in Nifty 50 as of 9:57 AM. 

 

Shares of the company snapped a two-day losing streak and currently trade at 5.9 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 18 per cent this year, compared to a 3.6 per cent advance in the benchmark Nifty 50. Lupin has a total market capitalisation of ₹88,332.65 crore.  Track LIVE Stock Market Updates Here

Lupin Q1 results 

The drug maker reported a profit after tax (PAT) of ₹1,221 crore in the April-June quarter, marking an increase of 72 per cent year-on-year (Y-o-Y). Revenue rose to ₹6,164 crore in the first quarter as against ₹5,514 crore in the year-ago period. 

 

The company said its sales in the US stood at ₹2,404 crore in the June quarter, registering a growth of 24 per cent as compared to ₹1,934 crore in the year-ago period. India sales for Q1 FY26 stood at ₹2,089 crore, up 8 per cent from ₹1,938 crore.

 

"We continue to build strong business momentum, anchored by a robust product portfolio, improved efficiencies, and effective use of assets and investments," Managing Director Nilesh Gupta said. "As we begin the year, our sharpened focus on compliance, innovation, and technology positions us to further unlock sustainable growth," he added. 

Analysts on Lupin Q1 results

Antique Stock Broking noted that Lupin delivered a strong first-quarter performance for FY26. Ebitda rose 28 per cent Y-o-Y despite a 38 per cent increase in R&D expenses. 

 

The quarter marked the launch of Tolvaptan (gJynarque) under sole FTF exclusivity in the US, boosting US sales to $282 million, it said, adding that the base US business saw single-digit price erosion. A further ramp-up is expected in the second quarter, analysts said. It maintained a 'Buy' rating on the stock with a revised target of ₹2,450 per share (earlier ₹2,395).

 

Systematix Institutional Equities said that while revenue and Ebitda came in below expectations, net profit was in line. The revenue and Ebitda miss was primarily due to lower-than-expected US sales, it noted. 

 

The brokerage has revised its estimates to reflect a higher contribution from generic Mirabegron over the year. Systematix maintains a 'Hold' rating on Lupin with a target price of ₹2,050.

 

Lupin’s superior performance was driven by 180-day exclusivity in tolvaptan and continued running in gSpiriva and gMyrbetriq, according to analysts at Nuvama Institutional Equities. FY26 is a strong year for Lupin with further launches of glucagon and liraglutide over the next few months, it said. They retained 'Buy' with a target price of ₹2,340 per share.