Growth tonic from US generics lifts Lupin

Complex generics and better mix fuel recovery cycle

- RAM PRASAD SAHU

‘The stock of pharmaceutical major Lupin hit its highest level in over seven months on Friday.

The stock, which has gained about 6 per cent over the past month, was lifted by a strong showing in the 2025-26 (FY26) second quarter (July-September/Q2). While sales growth was led by the US geography, margins also saw a healthy jump. The company is reportedly in talks to acquire UK-based nutraceuticals major Vitabiotics at a valuation of £1 billion, and the outcome could impact the stock price in the near term. At the current price, the stock is trading at 22x its 2026-27 (FY27) earnings estimates.

The recent trigger for the company was the Q2FY26 performance. Riding on the growth in the US and Rest of the World markets, overall revenue grew 24 per cent year-onyear (Yo-Y). The US revenues at $317 million were up 15 per cent quarter-on-quarter and were better than brokerage estimates. This was largely on account of the generic version of Tolvaptan, a drug used in treating low sodium levels in the blood. The drug was launched under a 180-day exclusivity.