Lupin has impressed analysts with a stronger-than-expected bottom line performance in the first quarter of FY26, driven by robust US revenue growth and improved margins. Nomura has reiterated its bullish stance on the stock, citing continued strength across key markets and improved profitability metrics.
Nomura on Lupin share: Maintains ‘Buy’, TP ₹2,350
Nomura has maintained a ‘Buy’ rating on Lupin with a target price of ₹2,350, indicating strong upside from the current market price of ₹1,861.20. The brokerage highlighted that while Q1 sales were broadly in line with expectations, EBITDA came in marginally higher and profit after tax beat estimates by 21%.
The earnings outperformance was largely aided by higher-than-expected other income and a lower-than-estimated effective tax rate. Domestic market strength was evident, with India sales growing 8.5% YoY — 2.3% ahead of the brokerage’s estimate. US revenue stood at $282 million, marking a $37 million sequential increase.
Lupin’s EBITDA margin improved by 330 basis points year-on-year and was 54 basis points above Nomura’s forecast.
The company’s execution in key geographies and improving margin trajectory reinforce the positive view among analysts. With consistent growth in the US business and solid domestic momentum, brokerages remain optimistic about Lupin’s near-to-mid-term outlook.
Disclaimer: The views expressed in this article are based on brokerage reports and do not represent the opinion of this publication. Investors are advised to consult their financial advisors before making any investment decisions.