Accumulate Lupin; target of Rs 2400: Prabhudas Lilladher

Prabhudas Lilladher recommended Accumulate rating on Lupin with a target price of Rs 2400 in its research report dated February 16, 2026.

Broker Research

February 16, 2026 / 11:34 IST

accumulate

Prabhudas Lilladher's research report on Lupin

Lupin’s (LPC) Q3FY26 EBITDA stood at Rs22bn (up 62% YoY); 13% beat to our estimates on the back of highest ever quarterly US sales supported by niche launches like gTolvaptan and strong flu season. LPC saw remarkable turnaround in profitability over last 3 years with ~5x jump in EBITDA over FY23- 26 aided by better product mix, continued niche launches in the US, clearance from USFDA for facilities, domestic formulations regaining momentum and cost optimization measures. Currently 3 products (gTolvaptan, gMirabegron and gSpiriva) contribute ~50% to total EPS. These products will face competition from H2FY27/FY28. Though Lupin has some niche pipeline including 505 (b) (2) opportunity and biosimilars to compensate we expect Lupin PAT to decline over FY26-28E.

Outlook

Our FY27E EPS stand increased by 10% however FY28E EPS broadly remain unchanged. We downgrade stock to “Accumulate” from BUY rating with TP of Rs2,400 (23x FY28E EPS).

For all recommendations report, click here