Lupin - Integrated Report 2025

Strengthening the financial foundations of sustainable, purpose-led growth

At Lupin, we align our Financial Capital with our fundamental purpose of advancing global patient health and well-being. It supports the investments we make in innovation, manufacturing, quality, and access, helping us deliver high-quality medicines to patients across the world. As a company with deep roots in this philosophy, we continue to invest in capabilities that reinforce our role as a trusted name for pharmaceutical innovation and manufacturing.

Our revenues of USD 3 billion and 40% U.S. sales growth (local currency) were one of the strongest financial performances among peers. While the U.S. was a standout in FY26, most of our regions, including the India prescription business, Other Developed Markets and Emerging Markets, delivered double-digit growth, with 13.3% and 35.2%, respectively, year-over-year. With a net debt-equity of -0.21 on March 31, 2026, we maintain a net-cash-positive position – a sign of a very healthy balance sheet.

Our business performance during FY26 was strong, further enhancing our ability to invest in a long-term, sustainable future while maintaining financial strength and flexibility. Our capital deployment remained focused on advancing differentiated product portfolios both organically and inorganically, expanding manufacturing and technological capabilities, strengthening digital infrastructure, and supporting sustainability initiatives across operations. Through thoughtful allocation of capital, we continue to acquire strategic, profitable assets that address the evolving needs of patients, healthcare systems, and communities worldwide.

INR 279,580 Mn

Revenues from Operations

7.5%

(of Total Sales) R&D Spend

INR 5,481 Mn

Dividend Paid

INR 92,405 Mn

EBITDA

Material Topics

Compliance

Risk Management and Business Continuity

Corporate Governance and Business Ethics

Access to and Affordability of Medicines

Financial Strategy

In an industry where scientific depth must be matched by scale, reliability, and long-term commitment, financial strength is more than a performance metric. It enables us to expand access to quality healthcare, reinforce our position as a trusted source of pharmaceutical innovation and manufacturing excellence, with sustained investments. Our constant endeavor has been to enhance our Financial Capital and strengthen our balance sheet to create a sustainable source that supports the translation of scientific capability into high-quality medicines and healthcare solutions that reach millions of patients across markets. Our growth is anchored in our purpose of catalyzing treatments that transform hope into healing.

Our financial management approach is guided by four core principles. First, we focus on sustainable, differentiated growth through a diversified portfolio spanning complex generics, respiratory therapies, biosimilars, ophthalmics, and specialty products. These businesses offer attractive growth opportunities while strengthening the quality and resilience of our earnings over time. Second, we allocate capital prudently, prioritizing investments and acquisitions that enhance long-term competitiveness while preserving financial flexibility. Third, we focus on efficiently converting growth and capital into cash flows by closely monitoring operating margins and working capital cycles. Converting operating margins into free cash flow fuels a virtuous cycle of growth and further capital allocation. Fourth, we safeguard the long-term financial stability of the business through effective management of liquidity and financial risks, including interest rate and foreign exchange risks. Given the global nature of our business and the risks inherent in it, constant vigilance on this front is essential.

Our financial decisions in FY26 were guided by a long-term value creation lens amid global macroeconomic uncertainty, pricing pressures in mature markets, and rising regulatory and sustainability expectations. Consistent with this approach, we continued to invest in research, manufacturing, digital and AI capabilities, patient access initiatives, and sustainability programs, supported by healthy cash generation and a strong balance sheet.

Operating Leverage and Agility

In FY25, we demonstrated a strong financial turnaround by achieving a positive debt-to-equity ratio, strengthening our working capital position, and building momentum in cash flow. In FY26, we built on that strong base to further our operational and financial efficiency, supported by growth and disciplined execution across businesses, raising our gross margin to 73.3% from 69.2% in FY25. Revenues from operations grew by 23.1% year-on-year, while EBITDA increased by 68.6%, reflecting stronger operating leverage, balanced portfolio mixes, and focus on cost optimization and digitization initiatives. Profit for the year rose by 62.0%, highlighting the strength of our differentiated portfolio and focused investments across growth platforms. EBITDA margins rose to 33.6% from 24.7% in FY25, reflecting improved operational efficiency and scale benefits across businesses.

For the full year, the U.S. business recorded sales of USD 1,318 million, compared to USD 944 million last year. This has been led by volume growth in our generics business and healthy contributions from complex generics, respiratory products, and differentiated launches. The U.S. contributed 42% of our total revenues in FY26. We continue to be the third largest pharmaceutical player in both the U.S. generic market and the U.S. total market by prescriptions (IQVIA Qtr TRx March 2026). Lupin is also the leader in 61 of its marketed generics in the U.S. and ranks among the top 3 in 112 of its marketed products (IQVIA Qtr March 2026).

In FY26, the India business (excluding API) grew by 7.1% year-on-year to INR 81,140 million, with the prescription business growing 10.6% against the Indian Pharmaceutical Market (IPM) at 9.9%, translating to 1.1x the IPM growth and accounting for 30% of our global sales. Volume growth has been a healthy 6.4% during the year, against an IPM volume growth of 2.6%, and the chronic share in the mix has increased to ~66% from around 64% in FY25.

This growth has positioned our formulations business as the 8th largest company in the Indian Pharmaceutical Market (IQVIA MAT March 2026). We advanced our India portfolio with 15 product launches in FY26 and are on track to introduce around 20 in FY27. We expect to sustain outperformance at 1.2x–1.3x of the IPM, backed by a strong field force and a pipeline of launches spanning differentiated in-house innovation and strategic in-licensing.

Sales across Developed and Emerging Markets delivered a robust growth of 13.3% and 35.2% respectively, underscoring sustained momentum across our global businesses.

Complementing growth, we scaled manufacturing, quality, and digital capabilities – driving greater agility, ensuring dependable supply, and expanding global patient access. Through sustained investments in innovation, manufacturing infrastructure, digital transformation, and patient access, we continue to reinforce our position as a globally trusted healthcare company, guided by our purpose.

Financial Highlights

Our profitability growth outpaced revenue growth, reflecting stronger operating leverage, portfolio enrichment, and enhanced margins across businesses. Growth was led by differentiated therapies, sustained momentum in chronic and specialty segments, and focused execution across global markets. Sustained investments in R&D, manufacturing, and digital capabilities solidified our ability to deliver at scale and enhance patient access to quality healthcare solutions, while maintaining a resilient balance sheet.

On a full-year basis, EBITDA was INR 92,405 million, a sharp increase of 68.6% year-on-year with EBITDA margins of 33.6% vis-a-vis 24.7% over the same period last year and significantly higher than margin guidance. Whilst we focus on increased cash generation for our business, we continue to explore strategic allocation of our capital to ensure the long-term mission of the company, including on the specialty front.

For more detailed information on Lupin’s financial performance during FY26, please refer to the standalone and consolidated financial statements presented in the Integrated Report.

Maintaining a Strategic Lens

Lupin’s strategic focus on complex generics, respiratory products, and biosimilars continued to translate into strong business outcomes during FY26, particularly in the U.S., where these differentiated platforms have become increasingly important drivers of growth and profitability. During the year, we advanced our growth platform through focused investments across complex generics, inhalation products, injectables, biosimilars, specialty therapies, and strategic expansion initiatives. Guided by our commitment to improving patient outcomes and expanding access to high-quality healthcare solutions, we focused on scaling differentiated capabilities across research, manufacturing, and commercial operations.

With strong new product launches, we augmented our respiratory and chronic therapy portfolios, expanded manufacturing and Contract Development and Manufacturing Organization (CDMO) capabilities and advanced our pipeline across complex and specialty therapies. In the U.S., we expanded our portfolio through differentiated launches, investments in complex generics, and 505(b)(2) opportunities.

In India, we expanded our presence in chronic disease therapies across respiratory, diabetes, cardiology, and gastrointestinal therapies through new launches, partnerships, and expanded market reach, supported by a strong field force of over 11,800 people. Underpinned by disciplined capital allocation, strong R&D capabilities, and an unwavering focus on quality and compliance, we reinforced our position as a globally trusted healthcare company, rooted in India, serving patients across regulated and emerging markets as well.

Diversified Portfolio to Cater to Every Market

Our FY26 market position was bolstered through a disciplined strategy encompassing differentiated launches, expansion into complex therapies, and geographic diversification, advancing access to quality healthcare for underserved and evolving patient needs. In the U.S., we launched Dapagliflozin and Tolvaptan with a first-to-file, 180-day exclusivity, and received tentative approval for Sugammadex Injection, while augmenting our portfolio across inhalation products, injectables, and specialty therapies. We launched 15 products and continued to build a strong pipeline across complex products, including 45+ injectable products and 20+ inhalation products. These efforts advance Lupin’s purpose by expanding access to affordable, differentiated therapies and improving patient outcomes across regulated markets. In India, we launched products across respiratory, diabetes, Central Nervous System (CNS), oncology, urology, dermatology, and cardiac therapies, and entered into a co-marketing agreement with Zydus for Semaglutide to expand our footprint in the GLP-1 category.

Our India strategy focuses on expanding leadership in chronic therapies, advancing respiratory and gastroenterology portfolios, and widening access to healthcare solutions across markets. As a pharma company with a strong global reach, we are committed to enhancing access to trusted, high-quality medicines across therapies and geographies.

Growth Through Expansions and Acquisitions

We progressed strategic expansion initiatives to enhance specialty capabilities, scale manufacturing, and support long-term growth platforms. In furtherance of this strategy, we completed the acquisition of VISUfarma B.V., a leading European ophthalmology-focused specialty pharmaceutical company, supporting the expansion of our specialty care portfolio and enhancing our presence in Europe.

We also expanded our Dabhasa manufacturing facility to scale our peptide platform and strengthen CDMO capabilities under Lupin Manufacturing Solutions (LMS). We entered into a License and Supply Agreement with Galenicum for Semaglutide across 23 countries, supporting the advancement of our presence in the GLP-1 therapeutic area. The acquisition of Renascience Pharma Limited in the U.K. enhanced our international specialty portfolio and extended our commercial presence across global markets. Further, we continue to work on both revenue and cost synergies to ensure that the returns envisaged from previous acquisitions are in line with our expectations.

Integration of Technology

During the year, we integrated technology and innovation across operations, product development, manufacturing, and patient engagement to drive efficiency, enhance productivity, and optimize outcomes.

Our digital healthcare ecosystem expanded through initiatives such as digital cardiac rehabilitation programs, neuro-rehabilitation platforms, patient support initiatives, and adherence programs designed to support patients throughout their care journey beyond treatment. These efforts reflect our purpose to make healthcare more connected, accessible, and patient-centric.

As part of our digital transformation, we continue to invest in new platform technologies across the value chain to optimize costs and achieve greater business efficiencies. This included deploying world-class quality systems such as Project Northstar (Veeva QMS) and Quality Prism, driving efficiency and quality excellence. In parallel, we scaled investments across key therapy platforms, supported by robust R&D and integrated end-to-end manufacturing capabilities. We continue to remain focused on delivering value through greater deployment of advanced capabilities across manufacturing, quality and other parts of the support value chain to enhance agility and execution.

We recognize that investment in AI presents a transformative opportunity for enhancing operational performance. We hope to harness the full power of AI across multiple functions to deliver superior performance over the next few years. At the same time, whilst the benefits could be profound, we are also seized with the need to establish sufficient guardrails to ensure that the risks associated with deployment are effectively mitigated or countered. The next few years look very exciting with a number of AI use cases going live through a phased scaling-up of the same.

Cost Leadership and Value Eroders

Achieved cost savings of USD 40+ million in FY26 through procurement efficiency, freight optimization, yield improvement, and network optimization initiatives.

Customer Focus

On-Time In-Full (OTIF) sustained at 98% for the U.S. and 99% for India in FY26, up from 96% and 97% respectively in FY24.

Promoting Sustainable Value Creation

We further embedded sustainability principles into financial and strategic decision-making, ensuring that capital allocation supports sustainable growth and long-term stakeholder value creation. Our sustainability priorities guide investments across manufacturing, climate action, employee well-being, patient access, and community development.

Employee Well-Being

At the core of everything we seek to achieve are our people, whose passion and commitment underpin our long-term growth and resilience. Our workplace culture has been recognized with a Great Place To Work® (GPTW) certification in 13 geographies globally. We continued to strengthen our organization by building future-ready capabilities across leadership, digital enablement, quality systems, regulatory compliance, and complex manufacturing, while creating opportunities for employees to grow and contribute across global operations. We continued to invest in employee well-being through our WellBeing360 framework, with targeted interventions across physical, emotional, nutritional, and financial wellness. These efforts are complemented by flexible work models, family-friendly policies, emotional wellness initiatives, and continuous learning opportunities that support our people holistically.

Health, safety, and human rights remain core priorities, underpinned by strong governance, regular assessments, structured training, and proactive risk management – helping create a safe, inclusive, and supportive workplace.

INR 252 Mn

Spent on learning and development

INR 45,745 Mn

Spent on employment benefits

Unwavering Commitment to Environmental Stewardship

We take pride in our environmental stewardship efforts, which are closely aligned with our purpose of improving lives responsibly and sustainably. As a healthcare company serving patients globally, we recognize the deep connect between environmental responsibility and public health. Over the year, we embedded sustainability into everyday business decisions across research, manufacturing, supply chain operations, and product development.

Lupin has been featured for the first time in the Dow Jones Best-in-Class Indices (DJBIC), including the DJBIC Emerging Markets Index. It reflects our consistent focus on sustainable, responsible, and ethical business, allowing us greater access to capital on more competitive terms.

We focused on reducing environmental impact through renewable energy adoption, resource efficiency, water stewardship, responsible waste management, and low-carbon innovation. Over 48% of our total energy consumption now comes from renewable sources. During the year, we expedited our transition to low-carbon operations by replacing fossil fuel–based boilers with biomass briquette systems, expanding on-site solar capacity to 6 MW, and securing 52 MW of renewable electricity through green power procurement. Our emissions-reduction targets were validated by the Science-Based Targets initiative (SBTi), and our performance was recognized with leadership ratings in Climate and Water from CDP.

Furthermore, we accelerated a range of initiatives, including supplier decarbonization programs, lifecycle assessments for key products, packaging optimization, water recycling, and the development of next-generation inhalers with lower global warming potential.

These efforts reflect our commitment to integrating scientific innovation with responsible manufacturing and long-term stewardship of resources. The outcomes from these measures have been resounding, and are reflected in our topping the league tables across several ESG-related frameworks.

Community Engagement

Our community engagement is grounded in the belief that access to healthcare, sustainable livelihoods, and strong communities drive long-term social progress. Through Lupin Human Welfare and Research Foundation (LHWRF) and our strategic partnerships, we expanded impact across healthcare access, preventive care, rural livelihoods, and water conservation. Our Lives Program broadened preventive outreach in underserved regions, while the Livelihood initiative advanced farmer training, watershed development, and income generation. We also continued investing in patient-centric programs spanning awareness, diagnostics, adherence, rehabilitation, and education, contributing to healthier, more resilient communities.

INR 363 Mn

Invested in community development

510,805

Beneficiaries impacted through CSR initiatives

Direct Economic Value Generated and Distributed

Our ability to create long-term value is reflected not only in our financial performance but also in the economic value we distribute across employees, suppliers, governments, shareholders, and communities. During FY26, we continued to expand our contribution to the broader economy through purposeful and sustained business growth, investments in people and operations, and disciplined financial management. As a global pharmaceutical company, this value creation also supports manufacturing, healthcare access, and employment generation across the markets we serve.

Tax Transparency

We hold ourselves to the highest standards of ethical, transparent, and responsible tax practices, aligned with our values and our Code of Business Conduct. Our tax strategy emphasizes full compliance with applicable laws in all jurisdictions where we operate, while prudently managing our tax responsibilities. Oversight of our tax function rests with the Chief Financial Officer (CFO) and is supported by our global corporate tax teams. We prioritize adherence to transfer pricing regulations and OECD guidelines, ensuring transparent and accurate reporting to tax authorities and stakeholders.

In FY26, we made direct and indirect tax contributions of approximately INR 16,831 million, supporting the economies in which we operate. Additionally, we have collected tax of INR 22,372 million in the form of withholding tax, payroll tax, and social security contributions, which were subsequently paid to governments globally.

Our commitment to tax transparency goes beyond statutory compliance, reinforcing trust, accountability, and confidence in our financial governance while supporting inclusive growth and strong institutions, aligned with SDGs 8, 10, 16, and 17.

For more detailed information on our tax approach and contributions, refer to the Lupin Limited Tax Transparency Report FY26.

Way Forward

We are steadfastly guided by our purpose to dedicate our financial and operating resources to ensuring access to quality care and catalyzing treatments that transform hope into healing.

We will continue to allocate capital with discipline, prioritizing high-value segments such as complex generics, respiratory, biosimilars, and specialty products, while selectively advancing adjacencies in diagnostics and digital therapeutics, and optimizing our research, development, and manufacturing solutions, thereby expanding access to meaningful healthcare outcomes for patients.

We remain mindful of the need to preserve balance sheet strength and financial flexibility as we navigate a volatile global landscape and pursue opportunities with clarity and discipline. Sustainability-led considerations are deeply reflected in how we plan and deploy capital that optimizes long-term value creation. Guided by prudent and transparent financial practices, we will continue to leverage Financial Capital responsibly to support sustainable performance and meaningful outcomes for patients and the communities we serve.