Cipla's Consolidated Profit Falls to 851.51 Crore Rupees in Second Quarter
Key Facts
Cipla reported consolidated net profit of 851.51 crore rupees for the quarter ended September 30, 2026, compared with 1,353.37 crore in the same period a year earlier. The official statement showed profit attributable to owners of the parent at 877.54 crore rupees, versus 1,351.17 crore a year earlier; this is a different measure from consolidated net profit. The board approved the results on October 27, 2026, following a limited review by auditors that concluded without modification. Meanwhile, revenue from the company's India business rose 12% year on year, while North America revenue declined 19%.
Consolidated revenue from operations was 7,403.93 crore rupees in the quarter, compared with 7,589.44 crore in the corresponding period and 7,119.28 crore in the previous quarter. This represents a year-on-year decline in revenue from operations, despite an increase compared with the quarter ended June 30, 2026. Cipla says some marketing and promotional expenses have been presented as a deduction from revenue since April 1, 2026, rather than being included under other expenses. The revised presentation included 131.27 crore rupees of expenses in the comparative quarter ended September 30, 2025. The company said the change relates only to presentation and does not affect profit, earnings per share, equity or cash flows.
The Indian market provided partial support to the result, with its revenue rising 12% during the quarter, according to Reuters. By contrast, North America revenue fell 19%, a decline the agency's coverage attributed to weak sales of generic Revlimid and intense competition in the U.S. market. Reuters' figure refers to regional revenue, while pre-results estimates covered U.S. market sales; the two measures therefore have different scopes. The corresponding period was a higher base for comparison in revenue from operations, with the company recording 7,589 crore rupees in the second quarter of fiscal 2026. EBITDA then stood at 1,895 crore rupees, with a 25% margin, according to Cipla's earlier statement.
Before the results announcement, NDTV Profit forecast that increased sales of generic Advair and Ventolin inhalers would become evident in the second half of fiscal 2027 and beyond. The preview said investors would watch management's assessment of a recovery in the U.S. business and the timing of upcoming launches, alongside opportunities for peptide-based products. These remain forward-looking indicators cited in the preview, rather than an official explanation of the reported quarter's results. First-quarter results also provide recent context: the headline of an EL7 story published on July 23, 2026, pointed to a 39.2% drop in Cipla's profit. Cipla had said in an earlier statement that generic Revlimid would make a small contribution in the third quarter of fiscal 2026, and that upcoming launches, subject to U.S. Food and Drug Administration approvals, were expected to cushion the drug's revenue decline over the following four quarters.