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Informist, Thursday, Jul. 23, 2026

 

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--Cipla Apr-Jun consol net profit INR 7.89 bln 
--Analysts saw Cipla Apr-Jun consol net profit at INR 8.36 bln 
--Cipla Apr-Jun consol revenue INR 71.19 bln 
--Analysts saw Cipla Apr-Jun consol revenue at INR 71.17 bln 
--Cipla Apr-Jun consol net profit INR 7.89 bln vs INR 12.98 bln year ago 
--Cipla Apr-Jun consol revenue INR 71.19 bln vs INR 69.57 bln year ago
--Cipla shrs at INR 1,397.80, down 1.2?ter brief recovery post Q1 results 
--Cipla Apr-Jun consol EBITDA INR 11.92 bln vs INR 17.78 bln year ago 
--Cipla Apr-Jun consol EBITDA margin 16.7% vs 25.6% year ago 
--Cipla Apr-Jun North America sales $162 mln vs $226 mln year ago 
--Cipla Apr-Jun One Africa sales $103 mln, up 1% on year 
--Cipla Apr-Jun Emerging Markets, Europe sales $106 mln, up 5% on year 
--Cipla Apr-Jun One India sales INR 34.52 bln, up 12% on year 
--Cipla Apr-Jun consol R&D expense INR 4.86 bln, 6.8% of revenue 
--Cipla MD: Expect sequential growth in N America, aided by upcoming pdts 
--Cipla: Expect gVentolin volumes in US to rise gradually as supply ramps up 
--Cipla Apr-Jun North America sales INR 15.32 bln, down 21% on year 

 

By Eshitva Prakash and Gunjan Rajput 

 

MUMBAI – In the June quarter, Cipla Ltd. reported the third consecutive quarter of a decline in its net profit, owing to a sharp rise in expenses and an unimpressive top line. While its consolidated sales were largely in line with analysts' estimates, its bottom line for the quarter was unable to beat the already bleak projection from analysts.

 

The pharmaceutical major's consolidated net profit for the June quarter fell over 39% on year to INR 7.89 billion, a tad lower than the consensus estimate of INR 8.36 billion. However, this is a decent sequential performance compared to an even worse fall in the trailing quarter, when the company reported a bottom line of just INR 5.55 billion. 

 

The company reported consolidated revenue of INR 71.19 billion, up just 2% on year and nearly 9% sequentially. An average of analysts' estimates had projected the figure at INR 71.17 billion. The company's other income fell more than 18% to INR 2.11 billion. 

 

The company's total expenses rose nearly 15% on year to INR 62.48 billion. Other expenses, which accounted for 28% of the total expense, rose nearly 4% on year to INR 17.62 billion, while the cost of raw materials consumed declined nearly 8% on year to INR 13.57 billion. Expenses related to purchase of stock-in-trade rose over 22% on year to INR 12.52 billion, and employee benefit expenses rose over 14% on year 14.97 billion. 

 

Cipla reported a sharp drop in profitability for Apr–Jun, weighed down by a steep decline in its core North American business, even as its domestic sales recorded double-digit growth.

 

The company's consolidated earnings before interest, tax, depreciation, and amortisation fell 33% year-on-year to INR 11.92 billion from INR 17.78 billion in the same period last year. Consequently, the EBITDA margin compressed significantly to 16.7% from 25.6% a year ago.

 

The main headwind came from the North American market, where sales dropped 28% year-on-year to $162 million from $226 million in the year ago. In rupee terms, the contribution from this market was INR 15.32 billion, down 21% on year.  

In the One India business, sales rose 12% year-on-year to INR 34.52 billion, the primary growth driver for the quarter.

"The business recorded a healthy growth YoY. The performance was supported by execution excellence in distribution and new introductions. The business launched 3 new products during the quarter. Anchor brands of Nicotex, Omnigel and Cipladine maintained leadership positions in their respective market segments," the company said in a press release. 

From emerging markets and Europe, revenue stood at $106 million, up 5% year-on-year. Revenue from the One Africa business edged up 1% on year to $130 million in the June quarter. 

"Going ahead, the focus will be on growing our key markets, further building our flagship brands, investing in future pipeline as well as focusing on resolutions on the regulatory front," Managing Director and Global Chief Executive Officer Achin Gupta said in the press release. 

Cipla maintained its commitment to long-term pipeline development, reporting consolidated research and development expenses of INR 4.86 billion, which accounted for 6.8% of the revenue during the reporting quarter. This was driven by higher product filings and development initiatives. The company currently holds net cash of INR 94.94 billion. 

The company expressed confidence in a near-term recovery for the North American market, expecting sequential growth to be driven by upcoming product launches. Additionally, the company expects generic Ventolin volumes in the US to pick up gradually as manufacturing and supply chains continue to scale. The company also plans to continue its portfolio expansion with the launch of Yurpeak, Duolin Syncrobreathe, Doloneuron, and Nasowash. In the June quarter, the company witnessed double-digit growth in chronic therapies such as respiratory, urology, anti-diabetes, and cardiac.

 

As of Jun. 30, the company had a total of 278 new drug application and abbreviated new drug application. Of these, 186 were approved, 44 were tentatively approved, and the remaining 48 were pending. 

 

Post the company's June quarter results, its shares recovered briefly. At 1408 IST, shares of the company were at INR 1,384.60 on the National Stock Exchange, down 2.2%.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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