Cipla’s Consolidated Profit Falls 35% to 8.78 Billion Rupees, Missing Analyst Estimates
Key Facts
Cipla said consolidated net profit fell 35% to 8.78 billion rupees in the quarter ended September 30, 2026, from 13.51 billion rupees a year earlier, Reuters reported. The result was below the analyst average estimate of 9.42 billion rupees, according to data compiled by LSEG. The figures showed divergent performance in India and North America, two markets that together account for about two-thirds of its revenue. Revenue from its India business rose, while North America revenue declined. After the results were announced, the stock fell as much as 2.7% to 1,319 rupees in trading on October 27, despite a 1.9% rise in the pharmaceutical companies index.
Cipla’s India business revenue grew 12% in the second quarter of fiscal 2027 to 3,516 crore rupees, its highest quarterly sales, NDTV Profit reported. India thus became the leading growth driver as the company faced a decline in North America. Revenue from the region was 1,643 crore rupees, down 19% year over year, according to NDTV Profit. Emerging markets and Europe posted revenue of 967 crore rupees, unchanged from the corresponding period. The results highlight the importance of regional divergence, as India and North America together account for about two-thirds of the company’s revenue, Reuters reported.
Overall, revenue from operations fell 2.4% to 74.04 billion rupees in the second quarter of fiscal 2027, Reuters reported. The company attributed part of the decline to an accounting change that took effect on April 1, 2026, under which some marketing and promotional expenses are now presented as deductions from revenue instead of being included in other expenses. The company said the change "did not affect earnings or cash flows." This means the accounting reclassification changed how revenue was presented, but did not change earnings or cash flows, according to the company. Net profit, meanwhile, actually fell to 8.78 billion rupees from 13.51 billion rupees a year earlier, below the analyst average estimate of 9.42 billion rupees.
In North America, Reuters said Cipla’s slowing U.S. business compounded the impact of domestic growth, while regional revenue fell 19%. Sales of the generic version of the blood cancer drug Revlimid continue to decline after the drug’s patent expired and competition intensified. The company had described sales as "continuing to decline after the drug’s patent expired," pointing to sustained pressure on its business in the region. NDTV Profit estimated the company’s U.S. business revenue at $172 million during the quarter. This performance places the region’s weakness in the context of challenges involving a specific product and a slowdown in the U.S. business, alongside growth in the Indian market.
Cipla is relying on obesity drug Yurpeak, which it markets in India under a licensing agreement with Eli Lilly, to support growth, Reuters reported. Shrikant Akolkar, a pharmaceutical sector analyst at Nuvama Institutional Equities, said "Yurpeak is performing well" and that revenue growth in India is likely to keep pace with the broader domestic pharmaceutical market. The assessment places the drug among the company’s efforts to support its India business, which posted its highest quarterly sales as revenue rose 12% to 3,516 crore rupees during the quarter. Meanwhile, the company said it had received U.S. Food and Drug Administration approval for gAdvair Diskus in all three strengths. Global CEO Achin Gupta said "North America performance will continue to be supported by the upcoming product pipeline," linking the regional outlook to forthcoming products.