Cipla Q3 Results: Pharma major Cipla posted a massive 57% year-on-year (yoy) decline in its consolidated net profit for the third quarter of the ongoing fiscal on Friday, missing estimates.
The company posted a net profit of ₹675.80 crore for Q3 FY26, as against ₹1,570.51 crore in the same period last year.
Revenue from operations stood at ₹7,074.48 crore, flat compared with ₹7,072.97 crore in the corresponding period a year ago. A Bloomberg poll of 22 brokerages had pegged its revenue at ₹7,530 crore and profit after tax at ₹Rs 1,250 crore.
A production halt at its partner’s manufacturing facility for its key US drug, Lanreotide, and a drop in sales of the blood cancer drug Revlimid, along with a one-time expense of ₹Rs 275.91 crore related to new labor codes, weighed on the company’s bottom line.
The earnings before interest, tax, depreciation and amortization (Ebitda) came in at ₹1,255 crore, down 36.9%, with an EBITDA margin of 17.7%.
The company reduced its full-year EBITDA margin guidance for a second consecutive quarter to about 21%, its management told reporters in a press briefing on Friday. In Q2FY26, it had reduced its guidance from 23.5-24.5% to 22.75-24%.
“We continue to invest strongly in R&D. We invested 7% of sales in R&D, and we have some very exciting assets in the pipeline, including the filings that we’re doing on complex oligonucleotides,” the company’s chief operating officer and global CEO and MD designate Achin Gupta told reporters.
Region-wise revenue breakdown
Revenue from the India business rose 10% yoy to ₹3,457 crore, as key therapies such as respiratory, urology, cardiac, and anti-diabetes showed double-digit growth, with the overall Chronic mix improving to 62.3%, the pharma company said.
The generics business recorded healthy growth, supported by execution excellence in distribution, new introductions and technological interventions.
Meanwhile, the North American business faced a 22% slump in revenue to ₹1,485 crore during the quarter under review.
Lanreotide manufacturing has been temporarily paused following USFDA observations at Cipla’s partner Pharmathen’s facility, with re-supply expected in H1 FY27. It added that gRevlimid had a small contribution in US revenues this quarter.
Cipla expects upcoming launches to cushion this decline and provide long-term growth.
The South African business rose 2% while emerging markets and Europe saw a 13% increase.
“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,” the company’s management said. In India, the company is focused on growing its chronic diseases portfolio, with recent launches such as inhaled insulin Afrezza and a partnership with Eli Lilly to sell the weight-loss drug tirezepatide under the brand name Yurpeak, boosting growth.
Cipla will wait and see how the weight-loss market evolves before deciding whether to launch its own generic version of semaglutide, which loses patent exclusivity in March.
“Our current focus remains on Tirzepatide, in terms of being a best-in-class molecule with dual action, GLP and GIP. While I think we would be able to serve a maximum number of patients on that as part of our partnership, we continue to remain open, and we will explore how the semaglutide market shapes up, especially at lower price points once the genericization happens,” Gupta said.
Cipla’s share price closed 4.13% lower at ₹1,314.85 on BSE on Friday.
