Cipla profit falls to 8.78 billion rupees, misses analyst estimates
Key Facts
Cipla reported consolidated net profit of 8.78 billion rupees for the quarter ended September 30, 2026, below analysts’ estimates of 9.42 billion rupees, according to coverage published by KSL on October 27. Profit fell from 13.51 billion rupees in the year-earlier period. This coincided with a 19% year-on-year decline in North American revenue. Reuters attributed the miss to weak sales of generic Revlimid and intense competition that weighed on the company’s U.S. business. Reuters said, "Weak sales of generic Revlimid and intense competition weighed on its U.S. business."
Pre-results estimates had painted a weaker picture for net profit, with an NDTV Profit preview forecasting 957 crore rupees for the September quarter, compared with 1,351 crore in the corresponding period of 2025, an expected decline of 29%. The preview estimated revenue at 7,642 crore rupees, compared with 7,589 crore a year earlier. It also forecast earnings before interest, taxes, depreciation and amortization to fall 27.4% to 1,374 crore rupees from 1,895 crore. It estimated the EBITDA margin at 18%, versus 25.4% a year earlier, attributing the expected pressure to product mix and continued pressure in the U.S. market. Those figures provide context for earlier market expectations, while the actual net profit in rupees came in below the analyst estimate cited in subsequent coverage.
By contrast, the preview forecast year-on-year growth of 13% to 14% in revenue from the India business in the September 2026 quarter. It estimated U.S. market sales at between 170 million and 181 million dollars, equivalent to an expected year-on-year decline of between 22% and 29%. Subsequent results showed a 19% decline in North American revenue, an actual figure for the region rather than an earlier estimate for U.S. sales. The difference in measurement scope is notable when comparing the estimate for the U.S. market with the reported North American revenue. The NDTV Profit preview had identified the two markets’ trajectories as areas for investors to track before the figures were released.
U.S. pressure is concentrated in generic Revlimid sales and intense competition, according to Reuters. Meanwhile, the NDTV Profit preview expected the expansion of generic Advair and Ventolin inhalers to become clearer in the second half of fiscal 2027 and beyond. That means the impact of these products was presented in the forecasts as a later development, not as an explanation for the reported September-quarter results. The preview also said investors would watch management’s assessment of a recovery in the U.S. business, the timing of upcoming product launches and progress in peptide opportunities. These areas put the expected management update in the context of tracking the effects of competition and the evolution of the product portfolio in the U.S. market.
The results follow a 39.2% fall in Cipla’s profit in the first quarter of fiscal 2027, according to the headline of an earlier story published by EL7 in July, which attributed the decline to weak U.S. sales. The official results page that was opened showed materials for the first quarter of fiscal 2027, for the period ended June 30, 2026, while coverage published on October 27 reported the announcement of second-quarter results. For historical comparison, the company posted record quarterly revenue of 7,589 crore rupees in the second quarter of fiscal 2026, ended September 30, 2025, with an EBITDA margin of 25%. These figures help put the current period in the context of the prior year, alongside the year-on-year declines in profit and North American revenue. Among the areas identified in the pre-results preview was management’s assessment of a recovery in the U.S. market, the timing of product launches and peptide opportunities.