Lupin's fundamental momentum remains strong

Major positive triggers 1. Strong US franchise The US is Lupin's biggest growth engine, contributing about 42% of global sales in Q1. Lupin received 6 ANDA approvals and launched 3 products during the quarter. It now has 149 generic products in the US market. 2. New high-value launches Recent US approvals include Modafinil, Pitolisant and Sodium Zirconium Cyclosilicate, while Lupin also received approval and launched Sugammadex injection. These complex/high-value products can support US growth and margins. A particularly interesting opportunity is Sodium Sulfate/Magnesium Sulfate/Potassium Chloride tablets, where Lupin is eligible for 180-day generic exclusivity; the reference product had estimated US annual sales of $132.8 million. 3. India business remains healthy India grew 13.9%, with formulation sales up 15.1%. This provides a more stable domestic earnings base alongside the faster-growing US business. 4. Strong balance sheet Lupin's net-cash position gives it flexibility for R&D, capacity expansion, acquisitions and shareholder returns without excessive dependence on debt. 5. GLP-1 opportunity The Indian GLP-1 market is projected to expand from roughly ₹4,000 crore in FY27 to ₹15,700 crore by FY32. Lupin is among the pharma companies considered well positioned to participate in this market. 🔴 Risks US growth sustainability is the biggest factor to watch. A 43% YoY increase is excellent, but part of the growth comes from new launches/exclusivity and favourable product mix. As competition increases, price erosion can reduce margins.