Ramesh Swaminathan in an interview with Business Today

The United States market remains the company’s strongest growth driver, contributing 40% of total sales and rising 47% year-on-year to ₹2,762 crore.

After delivering one of its strongest quarters ever, pharmaceutical major Lupin Ltd. is preparing for the next leg of growth, anchored in complex generics, respiratory therapies, and targeted speciality acquisitions, while maintaining a firm grip on profitability and capital discipline.

The company reported a 24 per cent year-on-year rise in revenue in the second quarter of FY26 to ₹6,831 crore, driven by strong gains in the United States and emerging markets. EBITDA rose 76 per cent to ₹2,431 crore, with margins improving to 35.6 per cent, while profit after tax grew 73 per cent to ₹1,485 crore.

“We have been steadily improving our performance over the last several quarters,” said Ramesh Swaminathan, Executive Director and Global CFO, Lupin. “This is on the back of several new product launches in the United States and other geographies.”

The United States market remains the company’s strongest growth driver, contributing 40% of total sales and rising 47% year-on-year to ₹2,762 crore. Swaminathan attributed the growth to high-value launches and exclusivity-led opportunities in that market.

“We ramped up Tolvaptan this quarter, which is under exclusivity as a first-to-file product, and products like Mirabegron continue to do well,” he said. “Our respiratory portfolio—Albuterol, Spiriva, and Xopenex—provides sustainable moats because of their complex drug-device combinations.”

While the United States’ performance has been the highlight, Lupin is also strengthening its presence across other regions. “In Brazil, we launched Dapagliflozin, which has done extremely well this quarter,” Swaminathan said. “In Europe, our respiratory product Luforbec and Namuscla for muscular dystrophy continue to perform strongly.”

In the domestic market, Lupin reported 8.8 per cent growth, ahead of the industry’s 7.2%. Swaminathan said the company’s India strategy is based on a five-pronged approach focused on execution and patient engagement.

“I would not call our India growth modest. Every division—cardiovascular, trade generics, respiratory—has done well,” he said. “It is a function of our diversified portfolio and deeper patient engagement. We have added more feet on the ground, improved productivity, and introduced innovative combinations such as the triple drug LAMA-LABA-ICS inhaler.”

Profitability improved sharply, with EBITDA margins expanding by more than 1,000 basis points compared to the previous year. Swaminathan said this improvement came from a rigorous focus on costs and operational efficiency.

“We have worked on alternate vendor development, process optimisation, zero-based costing, and rationalisation of labour and overheads,” he explained. “There has also been an emphasis on reducing inventory write-offs and improving the supply chain. These steps have collectively strengthened our margins.”

Lupin’s balance sheet has turned net cash positive, giving it flexibility to pursue calibrated expansion. The company intends to deploy its capital prudently and focus on strengthening its core pharmaceutical business through strategic acquisitions.

“We have a very clear capital allocation policy,” Swaminathan said. “Pharmaceuticals will remain our core. We are open to acquisitions in India and speciality purchases in Europe and the United States, but only if the valuations are compelling. The sweet spot for deals would be around 250 to 300 million dollars.”

Recently, Lupin acquired Bausch VISUfarma Pharma’s ophthalmology portfolio in Italy and Spain Europe, marking its entry into the speciality eye-care segment. “Ophthalmology is an area of interest for us, and we will continue to explore opportunities to supplement that through further acquisitions,” Swaminathan added.

At the same time, the company is nurturing new adjacencies such as diagnostics and digital health, though with limited financial exposure. “These are important from a patient-centric standpoint but will remain within defined thresholds,” he said. “Over time, we may look at bringing in private equity partners to help them grow independently.”

Looking ahead, Lupin expects FY26 and FY27 to build on the current momentum, supported by its respiratory and biosimilar portfolios and a stronger pipeline of complex generics. The company’s focus areas include complex injectables, specialty products, and expansion into new therapeutic segments.

“We are quite optimistic about the future,” Swaminathan said. “Our focus remains on delivering value through our respiratory portfolio, complex injectables, biosimilars, and speciality products. The ophthalmology entry in Europe is part of that plan, and we will continue to evaluate similar opportunities.”

With a robust product mix, disciplined execution, and an improving cost structure, Lupin is entering a phase of sustained growth. The company’s ability to combine strong United States momentum with diversification across markets positions it well for steady performance through FY26 and FY27.

This interview was first published on the Business Today online portal on November 11, 2025