Lupin Key Ratios

The PAT margin improved significantly from -9.31% in FY2022 to 14.45% in FY2025, indicating a strong recovery in profitability which is a key driver of ROE.Asset turnover remained relatively stable around 1.36, suggesting consistent utilization of assets, while leverage reduced from 1.76 to 1.67, indicating a lower reliance on debt over time.The overall increase in ROE from negative to 21.12% reflects a turnaround primarily driven by enhanced profitability rather than asset efficiency or leverage adjustments.

Inventory days peaked at 58.53 in FY2023 but declined to 51.19 in FY2025, indicating improved inventory management and quicker turnover.Receivable days showed a reduction from 56.09 in FY2023 to 50.00 in FY2025, reflecting improved collections and cash flow dynamics.An increase in payable days from 132.55 to 185.58 suggests a strategy of extending payment terms, which alongside a negative cash conversion cycle indicates potential liquidity challenges.

ROE has shown a dramatic recovery from -11.79% in FY2022 to 21.13% in FY2025, demonstrating significant improvements in equity efficiency.ROCE has also improved markedly, indicating that the company is using its capital more effectively, albeit still lower than ROE, suggesting debt is contributing positively to returns.ROA has moved from negative to 12.63%, indicating overall asset efficiency is strengthening, driven primarily by improved profitability rather than increased asset utilization.