Cipla reports 39% fall in consolidated net profit for Q1 of FY27

By Business Vibes of India On Jul 23, 2026

Mumbai, July 23: Pharma company Cipla has reported a 39 per cent year-on-year (Y-o-Y) decline in consolidated net profit to ₹789 crore for the first quarter (April-June/Q1) of 2026-27 (FY27), while revenue from operations rose 2.3 per cent Y-o-Y to ₹7,119 crore.

The decline in profit was due to a high base in the year-ago quarter, when the North America business benefited from higher revenue from lenalidomide and lanreotide, Cipla Managing Director and Global Chief Executive Officer Achin Gupta said.

He added that new products in the pipeline are “still catching up”, explaining the Y-o-Y decline in profit.

The results were announced during market hours. Cipla shares closed 1.5 per cent lower at ₹1,393.7 apiece on the BSE.

Cipla’s India business reported revenue of ₹3,452 crore, up 12 per cent Y-o-Y, marking its highest-ever quarterly revenue for the segment.

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The branded prescription business grew 15.4 per cent during the quarter, led by respiratory (15 per cent), diabetes (43 per cent), cardiac (20 per cent), and urology (double-digit growth), according to IQVIA data for the quarter ended June 2026. The company’s chronic therapy mix improved to 60.4 per cent.

Its flagship inhalation brand, Foracort, crossed ₹1,000 crore in revenue, while two new brands joined Cipla’s “₹100 crore club”, taking the total to 33. Cipla said it remained India’s largest pharmaceutical company by volume, with more than 2 billion units sold in the Indian pharmaceutical market, according to IQVIA moving annual total June 2026 data.

America revenue: $162 million

Cipla’s North America business reported quarterly revenue of $162 million, down 28 per cent Y-o-Y.

The company maintained its full-year earnings before interest, tax, depreciation, and amortisation margin guidance of 18.5-20 per cent and said it expects a “significant movement” in North America revenue over the coming quarters as new product approvals come through, including three respiratory launches and one peptide opportunity. It reiterated its target of achieving a $1 billion exit run rate for the region.

Gupta said the decline in North America revenue should be viewed sequentially rather than on a Y-o-Y basis, as the company lost its lanreotide business because of quality issues and lenalidomide exclusivity in the fourth quarter (January-March/Q4) of 2025-26.

On US tariffs, Gupta said the situation remains “evolving” and Cipla is closely monitoring developments.

Thirty-five per cent to 40 per cent of the company’s manufacturing already takes place in the US, he said. Gupta added that industry associations have been given a two-year window to assess tariff-related expectations, though he cautioned that “two years may be too short a time to move the entire manufacturing to the US”.

With a cash balance of more than ₹10,000 crore, Gupta said Cipla’s priority is to scale up organic capital expenditure, followed by investment in product development, particularly for its US pipeline.

On acquisitions, he said the company continues to evaluate opportunities in differentiated and complex products, mainly in the US and Europe, while remaining “disciplined” in its approach. Cipla plans to file 45-50 products over the next three years. (BVI)