Lupin Q1 Review: Goldman Sachs Remains Neutral, Hikes Target Price

Lupin Ltd., has received a target price hike from Goldman Sachs after first quarter results of fiscal 2025-26. The brokerage remains 'neutral' on balanced risk-reward.

Goldman Sachs has hiked Lupin's target price to Rs 2,025 from Rs 1,975, on strong first quarter.

The brokerage has hiked FY26-FY28E EPS estimate by 2-11% to factor in slightly faster topline growth and better margin development, reflecting an updated business outlook.

"Going forward, management reiterated its intention to continue market beating growth in India a sit benefits from its field force expansion drive, while also aiming for high-single and low-double digit growth in the US business over the medium term, as new launches become key earnings drivers," it added.

Drug maker Lupin on Tuesday posted a 52% year-on-year increase in consolidated profit after tax at Rs 1,221 crore in the June quarter, driven by strong sales in the US and India. The drug maker reported a profit after tax of Rs 805 crore in the April-June quarter of last fiscal.

"Lupin has reported Q1FY25-26 numbers above consensus with revenue. Ebitda margin improved to 26.2% on the back of better gross margins and operating leverage," it added.

The brokerage noted that, at a broader level, Lupin expects overall topline to grow by strong double digits in FY26, followed by high single digit growth in FY27.

Lupin also mentioned that it remains confident of 24-25% Ebitda margins in FY26, despite the uptick in R&D spends.