Lupin Q2 profit falls 22.2% YoY..........

Lupin Limited reported Q2 FY27 sales of ₹7,785.5 crore, up 14% year on year. However, PAT fell 22.2% to ₹1,155.3 crore. The key issue is margin pressure. EBITDA declined 10.7% YoY to ₹2,171.2 crore, while EBITDA margin dropped to 27.9% from 35.6% a year earlier. Employee costs rose 28.8% and manufacturing and other expenses increased 23.2%. The result shows strong revenue growth but weaker operating conversion. India sales increased 14.7% and US sales grew 9.3%, which supports the revenue side. The concern is whether higher operating costs can moderate as growth continues. My view is that the next quarter should be judged more on margin recovery than headline sales growth. I would watch EBITDA margin, US performance and operating expenses in Q3 FY27. Stance: Positive on revenue growth, but margin recovery remains the key trigger.