Can Lupin’s US Business Cross the $1 Billion Mark? Here’s What Goldman Sachs Says

Synopsis:- A global brokerage maintained a ‘Neutral’ rating with a target price of ₹2,275, implying about 2% downside from ₹2,316. The company expects US business to cross $1 billion, plans five biosimilar launches in five years, while OPM improved from 24% to 32%. 

India’s pharmaceuticals sector is booming, fueled by strong domestic demand and robust exports. In FY2026, the industry eyes 7-9% revenue growth overall, with the domestic market expanding 8-10% via deeper rural reach and new launches. Q1 FY26 saw 11% revenue surge, outpacing GDP, while exports hit $7.57 billion, up 5.21%. This positions it as a global generics powerhouse.

With a market capitalization of Rs 1,05,960.90 crore, the shares of Lupin Ltd were trading at Rs 2,318.25 per share, increasing around 0.60 percent as compared to the previous closing price of Rs 2,304.45 apiece.

Goldman Recommendation

Lupin Limited is expected to see strong growth in its US business, as Goldman Sachs highlighted management guidance indicating revenues could surpass $1 billion next year, driven by strong traction in complex generics. Additionally, the company aims to launch at least five biosimilars over the next five years, strengthening its position in the biologics segment.

Moreover, Lupin is positioning itself to capture opportunities in the GLP-1 drug market, with partnered injectable products and internally developed oral formulations currently under development. At the same time, the company is leveraging its excess API manufacturing capacity to expand its CDMO business, including a strategic collaboration with PolyPeptide, supporting long-term growth.

Goldman Sachs maintained a ‘Neutral’ rating on Lupin Limited with a target price of  Rs 2,275 per share. Compared to the current market price of  Rs 2,316.20, the target suggests a potential downside of about 2%, indicating limited near-term upside despite the company’s growth prospects.

Financial & other Highlights

Looking forward to the company’s financial performance, revenue increased by 24 percent from Rs 5,768 crore in Q3FY25 to Rs 7,168 crore in Q3FY26. Further, during the same time frame, net profit increased by 37 percent from Rs 859 crore to Rs 1,181 crore.

Between Dec 2024 and Dec 2025, the company showed great improvement in operating performance. Operating profit increased from  Rs 1,356 crore in Dec 2024 to  Rs 2,262 crore in Dec 2025. Meanwhile, OPM improved from 24% to around 32%, reflecting stronger operational efficiency.

The company reported broad-based growth across key regions in its business performance. North America led with revenue of 32,183 million, growing 52% YoY, followed by India at 20,387 million, up 6% YoY. Meanwhile, LATAM recorded a strong 70% YoY growth to 3,267 million, while APAC and ROW grew 14% and 47%, respectively, indicating solid global expansion.

Lupin Limited is a global pharmaceutical company headquartered in India, known for developing and manufacturing branded and generic medicines. The company operates across key therapeutic areas such as cardiovascular, diabetes, respiratory, and anti-infectives, with a strong presence in the United States, India, and several international markets.

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