Lupin shares jump 5% after strong Q1 results. Should you accumulate more?

Lupin shares surged 5% to Rs 1,940 in Thursday’s trade after the pharmaceutical giant reported a strong set of Q1 FY26 results, with consolidated net profit rising 52% year-on-year to Rs 1,221 crore, compared to Rs 805 crore in the same quarter last year. The impressive performance was driven by robust growth in both the US and Indian markets.

Revenue for the quarter stood at Rs 6,164 crore, up from Rs 5,514 crore a year ago.

“We continue to build strong business momentum, anchored by a robust product portfolio, improved efficiencies, and effective use of assets and investments,” said Nilesh Gupta, Managing Director, Lupin.


“As we begin the year, our sharpened focus on compliance, innovation, and technology positions us to further unlock sustainable growth,” he added.

The company reported US sales of Rs 2,404 crore in the June quarter, registering a 24% growth compared to Rs 1,934 crore in the year-ago period.

Should you buy, sell, or hold Lupin stock? Here’s what brokerages say:

Choice Broking

Choice upgraded its rating on Lupin to ‘Buy’ and raised the target price to Rs 2,375 (from Rs 2,270), citing continued growth momentum across key markets, especially North America and India. High-impact launches such as Liraglutide and Glucagon are expected to contribute significantly to revenue.

While margins may face temporary pressure in FY26 due to increased R&D spend on the GLP-1 portfolio, the firm expects normalisation by FY27 as scale benefits kick in.

Choice forecasts a revenue, EBITDA, and PAT CAGR of 12%, 14%, and 12%, respectively, over FY25–28E. The stock is valued at 25x FY27–28E average EPS.

Motilal Oswal (MOSL)

Motilal Oswal maintained a ‘Neutral’ stance on Lupin and revised its target price downward to Rs 2,000 (from Rs 2,140). While acknowledging the earnings surprise driven by strong US execution, MOSL highlighted limited upside from current levels.

It raised earnings estimates by 5.5% for FY26 and 2% for FY27. The stock is currently valued at 22x 12-month forward earnings, with EBITDA and PAT CAGRs of 14% and 16%, respectively, over FY25–27.

It expects EBITDA margins of 24–25% in FY26.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)