Lupin Limited (LUPIN) AI Stock Analysis

• Market Cap: ₹1.05T
• Dividend Yield: 0.57%
• Average Volume (3M): 25.39K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 0.62
• Revenue Growth: 15.49%
• EPS Growth: 64.37%
• Country: IN
• Employees: 19,210
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 33.40
• Shares Outstanding: 457,043,200
• 10 Day Avg. Volume: 23,417
• 30 Day Avg. Volume: 25,387
• PEG Ratio: 0.38
• Price to Book (P/B): 5.20
• Price to Sales (P/S): 3.94
• P/FCF Ratio: 67.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹2,460.00
• Price Target Upside: 26.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 110.2
• Revenue Forecast (FY): ₹271.12B

• Rating: 72 Outperform
• Price Target: ₹2,542.00 ▲(31.11% Upside)
• Action: Upgraded Date: 10/30/25
• Date: Action: Upgraded 10/30/25

Lupin Limited's overall stock score reflects its strong financial performance and fair valuation, tempered by mixed technical indicators. The company's robust revenue growth and profitability are significant positives, while the technical analysis suggests caution due to bearish momentum signals.

Positive Factors

Consistent Revenue Growth

Sustained revenue growth demonstrates expanding product adoption across geographies and therapeutic areas. Over 12% YoY growth supports scale advantages, funds R&D and commercialization, and reduces reliance on any single market, strengthening the firm's medium-term growth trajectory.

Healthy Profitability Margins

Robust gross and operating margins indicate durable cost controls and a mix skewed to higher-margin branded/specialty products. High margin structure supports reinvestment capacity and resilience to pricing pressure, underpinning long-term earnings quality and cash generation potential.

Solid Balance Sheet and ROE

Moderate leverage with a strong ROE shows efficient use of equity and financial flexibility. A healthy equity ratio provides capacity for targeted M&A, capex or shareholder returns while limiting solvency risk, supporting strategic initiatives over the coming months.

Negative Factors

Weak Free Cash Flow Growth

A large YoY decline in free cash flow signals weaker cash conversion despite profit growth. Persistently falling FCF limits internal funding for capex, acquisitions and dividends, forcing reliance on external financing or curtailed investments over the medium term.

Suboptimal Cash Conversion Ratios

Low FCF-to-net-income and near‑par OCF-to-net-income indicate earnings are not fully translating into flexible cash. Structural conversion inefficiencies constrain balance sheet optionality and make the company more sensitive to working capital swings and investment timing.

Exposure to Generics Market Competition

A business mix dependent on generics in regulated markets leaves revenues and margins vulnerable to pricing competition and tender volatility. Long lead times and win/loss dynamics make earnings lumpy and require continual pipeline and launch execution to sustain growth.

Lupin Limited Business Overview & Revenue Model

Company Description

Lupin Limited, a pharmaceutical company, develops, produces, markets, and sells a range of branded and generic formulations, biotechnology products, and active pharmaceutical ingredients (APIs). It offers formulations for use in the therapeutic areas of cardiovascular, diabetology, asthma, pediatrics, central nervous system, gastrointestinal, anti-infective, nonsteroidal anti-inflammatory drug therapy, respiratory, women's health, and anti-tuberculosis. The company is also involved in the provision of biosimilar and over-the-counter products; specialty products; and drug discovery and development programs in the therapeutic areas of oncology, immunology, and metabolic disorders, as well as bio clinical research activities. Lupin Limited network consists of 18 labs, 280 LupiMitra collection centers, and 450 pick-up points. It operates in India, the United States, the United Kingdom, South Africa, Australia, the Philippines, Germany, the Netherlands, Mexico, and Brazil. The company was formerly known as Lupin Chemicals Limited and changed its name to Lupin Limited in 2001 as a result of its amalgamation with Lupin Laboratories Limited. Lupin Limited was founded in 1968 and is headquartered in Mumbai, India.

How the Company Makes Money

Lupin primarily makes money by selling pharmaceutical products across multiple geographies through (1) generic medicines, (2) branded formulations (particularly in India and select emerging markets), and (3) specialty products in certain segments. Revenue is generated when Lupin manufactures and markets finished dosage formulations (e.g., tablets, capsules, inhalation products) and sells them to wholesalers, distributors, pharmacies, hospitals, and government/ institutional buyers. In regulated markets (notably the U.S.), a substantial portion of sales typically comes from generics launched after patent expiry and/or upon regulatory approval, where pricing and volumes are influenced by competition, tender/contract wins, and channel purchasing dynamics. In India, branded formulations contribute through physician-prescribed brands sold via the company’s salesforce and distribution network. Lupin also earns from active pharmaceutical ingredients (APIs)/intermediates where it supplies internal needs and may sell to external customers; however, the relative contribution varies by period. Additional income can come from licensing, co-development/co-marketing arrangements, and milestone/royalty-like receipts when applicable; specific current partnerships and their financial contribution are null.

Lupin Limited Financial Statement Overview

Summary

Lupin Limited demonstrates strong financial performance with robust revenue growth, high profitability margins, and a stable balance sheet. The company shows efficient cost management and operational efficiency, though cash flow conversion could be improved.

Income Statement

Lupin Limited has demonstrated strong revenue growth over recent years, with significant improvements in both gross and net profit margins. The gross profit margin for 2025 was 48.9%, indicating efficient cost management, while the net profit margin stood at 14.8%, reflecting strong profitability. Moreover, the company achieved a robust revenue growth rate of 12.9% from 2024 to 2025. The EBIT and EBITDA margins were also healthy at 20.1% and 24.7%, respectively, showcasing operational efficiency. The positive trajectory in these metrics highlights strong financial performance.

Balance Sheet

The balance sheet of Lupin Limited shows a solid equity base with a debt-to-equity ratio of 0.32, indicating moderate leverage. The return on equity (ROE) is impressive at 19.1%, showcasing efficient utilization of equity to generate profits. The equity ratio is healthy at 58.9%, pointing to a strong equity position relative to total assets. While the overall stability is good, potential risks could arise if debt levels increase significantly.

Cash Flow

Lupin Limited's cash flow statement reflects a positive free cash flow growth rate of -51.6% from 2024 to 2025, highlighting some challenges in cash generation. However, the operating cash flow to net income ratio of 0.91 suggests that the company is generating sufficient cash from operations relative to its earnings. The free cash flow to net income ratio stands at 0.40, indicating room for improvement in converting profits into free cash flow. While cash flow management appears stable, enhanced cash conversion could further strengthen financial positioning.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	247.51B	227.08B	200.11B	166.42B	164.05B	151.63B
Gross Profit	157.85B	153.27B	128.99B	94.10B	95.05B	94.18B
EBITDA	64.56B	50.51B	36.27B	15.73B	19.66B	25.24B
Net Income	43.25B	32.82B	19.14B	4.30B	-15.28B	12.17B
Balance Sheet
Total Assets	335.00B	292.05B	239.97B	229.56B	218.21B	236.10B
Cash, Cash Equivalents and Short-Term Investments	62.82B	42.01B	21.79B	19.52B	21.04B	41.11B
Total Debt	62.17B	54.48B	29.22B	45.42B	41.58B	51.29B
Total Liabilities	137.72B	119.11B	96.24B	104.13B	95.99B	97.52B
Stockholders Equity	196.33B	172.03B	142.90B	124.64B	121.53B	138.03B
Cash Flow
Free Cash Flow	23.29B	13.18B	27.19B	3.98B	-5.38B	11.44B
Operating Cash Flow	29.03B	30.00B	36.48B	18.97B	3.67B	18.22B
Investing Cash Flow	-28.42B	-41.72B	-17.12B	-12.87B	12.92B	-12.40B
Financing Cash Flow	-2.77B	17.32B	-21.84B	-3.37B	-15.72B	-18.85B

Lupin Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1938.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LUPIN, the sentiment is Positive. The current price of 1938.85 is below the 20-day moving average (MA) of 2289.93, below the 50-day MA of 2216.32, and below the 200-day MA of 2038.37, indicating a bullish trend. The MACD of 34.92 indicates Positive momentum. The RSI at 53.02 is Neutral, neither overbought nor oversold. The STOCH value of 54.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:LUPIN.

Lupin Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUPIN	72 Outperform	₹1.05T	20.49	―	0.57%	15.49%	64.37%
ZYDUSLIFE	72 Outperform	₹891.83B	22.07	―	1.19%	14.01%	14.62%
DRREDDY	70 Outperform	₹1.06T	21.88	―	0.63%	14.10%	9.72%
CIPLA	68 Neutral	₹1.05T	45.14	―	0.87%	6.93%	21.55%
TORNTPHARM	66 Neutral	₹1.44T	51.30	―	0.84%	9.11%	18.76%
MANKIND	59 Neutral	₹863.55B	55.46	―	0.04%	23.22%	-19.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Lupin Limited Corporate Events

Lupin Receives Two FDA Observations After Ankleshwar Plant Inspection

Lupin Limited said the U.S. Food and Drug Administration has completed an inspection of its Ankleshwar manufacturing facility in India, conducted from March 2 to March 7, 2026. The review closed with a Form 483 containing two observations, indicating issues the regulator expects the company to remediate.

Lupin plans to address the U.S. FDA’s observations and submit a response within the required timeframe, reaffirming its commitment to CGMP compliance across all sites. While the presence of observations signals some gaps in quality or processes, the limited number may help reassure investors and partners that the facility remains broadly aligned with regulatory expectations.

Lupin Says GST Department Inspection Concludes With No Financial Impact

Lupin Limited reported that the Maharashtra Goods & Service Tax Department has concluded its inspection and search proceedings at the company’s registered office, which began in late February and ended on March 2, 2026. The company stated it fully cooperated by providing all requested information and documents, and confirmed that no official communication indicating adverse findings has been received from the tax authorities, with no impact on its financials arising from the inspection.

The update signals that, at this stage, the GST inquiry does not pose an immediate financial or operational risk to Lupin, offering reassurance to investors and other stakeholders. While the absence of adverse remarks reduces near-term regulatory overhang, the market is likely to watch for any future communication from the authorities that could clarify whether the matter is definitively closed or subject to further review.

Lupin Wins Positive U.S. FDA Inspection Outcome for Goa Plant

Global drugmaker Lupin Limited has received an Establishment Inspection Report from the U.S. Food and Drug Administration for its Goa, India manufacturing facility, with a Voluntary Action Indicated classification. The report follows an FDA inspection conducted in November 2025 and signals that any observed issues are minor and can be addressed without regulatory sanctions.

Management said the outcome underscores Lupin’s emphasis on quality and compliance and supports its ability to reliably supply medicines to international markets, particularly the U.S. The favorable regulatory status at Goa strengthens Lupin’s manufacturing footprint and reinforces stakeholder confidence in its global operations and ongoing access to key regulated markets.

Lupin CEO Vinita Gupta Named CNBC Changemaker as U.S. Expansion Gains Momentum

Lupin Limited announced that its CEO, Vinita Gupta, has been named to the 2026 CNBC Changemakers list of Women Transforming Business, recognizing her role in making medicines more accessible and affordable for Americans. The honor underscores Lupin’s rapid ascent under her leadership to become the third-largest generic medicine supplier to the U.S. by volume and highlights its growing portfolio in complex generics, inhalation therapies, and biosimilars.

Gupta’s strategic emphasis on the U.S. market includes the FDA approval in late 2025 of Lupin’s first biosimilar Pegfilgrastim, reinforcing its push into high-value, specialty medicines. Her drive to expand domestic manufacturing through a planned state-of-the-art inhalation facility in Coral Springs, Florida, is positioned to bolster U.S. medicine security, increase production of key respiratory drugs such as Albuterol, and improve access for patients, further strengthening Lupin’s competitive standing and stakeholder confidence.

Lupin Tops Global Pharma and India Rankings in S&P ESG Assessment 2025

Lupin Limited has been ranked the number one pharmaceutical company globally and the top company across all sectors in India in the S&P Global Corporate Sustainability Assessment 2025, with an overall score of 91 out of 100. This places Lupin among the top 1% of companies worldwide in the assessment and secures its inclusion in the S&P Global Sustainability Yearbook 2026 for the third consecutive year.

The recognition underscores Lupin’s position as a global sustainability leader and reflects its strong performance on economic, environmental, and social criteria relative to more than 9,200 companies assessed across 59 industries. Management indicated that this achievement reinforces Lupin’s long-term strategy of integrating ESG principles across its value chain and supports its efforts to drive positive outcomes for patients, communities, and stakeholders, potentially strengthening its reputation with investors and regulators.

Lupin Partners with TB Alliance to Advance Telacebec for Tuberculosis and Other Mycobacterial Diseases

Lupin Limited has entered into a strategic collaboration with nonprofit drug developer TB Alliance to advance the clinical development and commercialization of the investigational drug Telacebec for multiple mycobacterial diseases, including tuberculosis, leprosy and Buruli ulcer. Under the agreement, TB Alliance will lead development while Lupin contributes its global manufacturing, regulatory and supply chain capabilities to ensure worldwide access, reinforcing Lupin’s focus on addressing unmet medical needs and potentially strengthening its role in the global fight against neglected infectious diseases.

Lupin Strikes Global Semaglutide Deal With Galenicum Across 23 Markets

Lupin Limited has entered into a licensing and supply agreement, via its subsidiary Lupin Atlantis Holdings, with Spain-based Galenicum Health for finished injectable formulations of Semaglutide, a GLP-1 receptor agonist used in Type 2 diabetes and obesity management. Under the deal, Galenicum will develop, manufacture and supply the product, while Lupin will manage regulatory approvals and commercialization across 23 countries, including Canada, Europe, Southeast Asia and Latin America, sharpening Lupin’s push into the fast-growing GLP-1 market. The partnership is positioned as a strategic milestone that expands Lupin’s Semaglutide portfolio and leverages its existing commercial footprint to scale access to cost-effective diabetes and obesity treatments, while supporting Galenicum’s ambition to become a leading B2B GLP-1 supplier amid surging global demand for these therapies.