Cipla reported a 35 percent drop in second-quarter net profit to 8.78 billion rupees on Tuesday, falling short of analyst expectations as muted US sales of generic Revlimid and rising competition weighed on the pharmaceutical manufacturer’s international operations.
Consolidated net profit fell to 8.78 billion rupees ($92.2 million) for the quarter ended September 30, down from 13.51 billion rupees a year earlier at India’s third-largest drugmaker by revenue. Analysts surveyed by LSEG had anticipated profit of 9.42 billion rupees. Total revenue from operations declined 2.4 percent to 74.04 billion rupees, partly affected by an accounting reclassification effective April 1, 2026, that presents certain marketing and promotional expenses as a reduction from revenue rather than under other expenses.
Consolidated net profit fell to Rs 877.54 crore, compared with Rs 1,351.17 crore in the corresponding quarter of the previous fiscal year. Revenue from products stood at Rs 7,368.15 crore, down 1.06 percent from Rs 7,447.42 crore reported in the same period a year ago, while earnings before interest, tax, depreciation, and amortisation declined 26.7 percent year-on-year to ₹1,388 crore from ₹1,894.75 crore.
US Market Pressures and Earnings Shortfall
North American revenue decreased 19 percent during the quarter to $172 million, down from 2,039 crore rupees in the corresponding quarter last year, as sales of generic Revlimid — Bristol-Myers Squibb’s blood cancer drug — continued to taper amid rising competition, though the figure represented a sequential improvement of $10 million over the previous quarter. Albuterol ranked No. 1 in the overall US Albuterol metered-dose inhaler market, holding a 22 percent market share.
Earnings before interest, taxes, depreciation, and amortization fell 26.8 percent to 1,388 crore rupees, while the EBITDA margin contracted to 18.7 percent from 25 percent a year earlier. Sequential margins improved by 200 basis points from the 16.7 percent recorded in the first quarter of fiscal 2027.
Domestic Growth and International Segment Performance
Cipla’s India business recorded its highest-ever quarterly sales, with revenue rising 12 percent year-on-year to 3,516 crore rupees from 3,146 crore rupees in the year-ago period. Consumer health brands such as Nicotex, Omnigel, and Cipladine maintained their leadership positions in their respective market segments.
Revenue from the One Africa business declined 1 percent year-on-year to Rs 1,171 crore. South Africa revenue fell 3 percent to Rs 872 crore from Rs 901 crore, although private-market secondary sales grew 6.5 percent against an overall market growth rate of 5 percent, keeping the prescription business in the No. 2 position. The Emerging Markets and Europe business reported revenue of Rs 967 crore, unchanged from the year-ago period, totaling USD 101 million despite operating amid geopolitical uncertainties and market-specific challenges.
Strategic Pipeline Developments and Leadership Commentary
Cipla is banking on new product introductions and specialized partnerships while maintaining execution and cost discipline across its direct-to-market and business-to-business segments.
We remain focused on serving patients with trusted, high-quality medicines,
Achin Gupta, MD and Global CEO of Cipla
We expect North America performance to remain supported by our upcoming product pipeline…We continue to focus on sustained growth in our core businesses, improving productivity, strengthening our pipeline in order to serve patients with trusted, high-quality medicines,
Achin Gupta, MD and Global CEO of Cipla
The company reported a net cash position of Rs 9,823 crore. Cipla shares came under pressure following the earnings release, later trading down 2.31 percent at Rs 1,323.70 during Tuesday’s afternoon session.
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