Lupin rallies 12% thus far in CY26, outperforms market; here's why

In the past one month, Lupin has outperformed the market by soaring 6 per cent, as against 4.5 per cent decline in the BSE Sensex.

Lupin share price today

 

The share price of Lupin hit a fresh 52-week high at ₹2,357.95, gaining 2 per cent on the BSE in Thursday’s intra-day trade on healthy business outlook. The stock price of the pharmaceutical company was quoting close to its all-time high of ₹2,403.45 touched on January 2, 2025. In comparison, the BSE Sensex was up 0.51 per cent at 09:47 AM.

 

In the past one month, Lupin outperformed the market by soaring 6 per cent, as against 4.5 per cent decline in the BSE Sensex. Further, thus far in the calendar year 2026, the stock has rallied 12 per cent, as compared to 6.6 per cent fall in the benchmark index.

 

 

Why did Lupin's stock price outperform the market?

 

Lupin December 2025 quarter (Q3FY26) results came in significantly ahead of analysts’ estimates, with revenue and EBITDA higher by 9 per cent and 38 per cent, respectively. The beat primarily comes from continued market exclusivity in gJynarque (tolvaptan); competition is yet to enter even though the 180-day exclusivity period is over. Also, gSpiriva and gMyrbetriq (mirabegron) continue to be large contributors to the US business. The management raised FY26 EBITDA margin guidance to 27-28 per cent from 25-26 per cent.

 

Last week, on February 27, 2026, Lupin said it received the Establishment Inspection Report (EIR) from the United States Food and Drug Administration (US FDA) for its facility in Goa, India, with a satisfactory Voluntary Action Indicated (VAI) classification. The EIR was issued following an inspection of the facility from November 10 to November 21, 2025.

 

Lupin specializes in pharmaceutical products, including branded and generic formulations, complex generics, biotechnology products, and active pharmaceutical ingredients. The company enjoys a strong position in India and the U.S. across multiple therapy areas, including respiratory, cardiovascular, anti-diabetic, anti-infective, gastrointestinal, central nervous system, and women's health.

 

On February 24, Lupin has received final approval from the USFDA for Abbreviated New Drug Application (ANDA) Brivaracetam Oral Solution. The medication is generic equivalent to the Briviact of UCB and is indicated for the treatment of partial-onset seizures in patients 1 month of age and older. The medication had an estimated annual sale of $135 million in the US as per IQVIA MAT December 2025.

 

Further, on February 23, Lupin announced that it secured approval from the European Commission for its biosimilar ranibizumab, Ranluspec, following a positive opinion from the committee. The drug is indicated for the treatment of neovascular (wet) age-related macular degeneration. The biosimilar will be marketed across the European Union (excluding Germany) by Sandoz, while in France it will be commercialized by Sandoz and Biogaran.

 

The approval from the European Commission for its biosimilar ranibizumab, Ranluspec, is in line with the company’s guidance shared during its year-end presentation and further strengthens Lupin’s biosimilar portfolio, marking an important regulatory milestone in Europe. The partnership with Sandoz is expected to support faster market penetration and improve revenue visibility across key the EU markets, ICICI Securities said in a note.

 

Brokerages view on Lupin

 

Analysts at InCred Equities maintain an 'ADD' rating on Lupin with a higher target price of ₹2,675 (28x FY27F EPS), from ₹2,400 earlier, given the improved US earnings visibility, expanding biosimilar and injectable pipeline, strengthening India mix and a robust balance sheet with net cash position.

 

While margins are expected to normalise to 24-25 per cent, the brokerage firm sees earnings durability supported by extended Mirabegron visibility, staggered Tolvaptan competition, emerging injectable and biosimilar ramp-up, and structural mix improvement in India.

 

Tolvaptan, launched with 180-day market exclusivity, continues to remains the sole generic in the market despite expiry of the exclusivity period. Analysts at Elara Capital expects additional competition only in September 2026, given the IP landscape; after that, it will be a staggered entry of players. The recent settlement with Astellas Pharma provides visibility to gMyrbetriq sales continuing until September 2027. Currently, there is no indication of entry of any competitor in the gSpiriva market. Analysts lifted target price to ₹2,447 which is on 25.0x FY28E core earnings plus cash per share.    =================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.