CIPLA Q2 FY27 results: net profit down 37.1% to ₹851.51 crore, revenue down 2.4%

How did CIPLA perform in Q2 FY27?

Cipla's consolidated revenue for the July–September 2026 quarter was ₹7,404 crore, down ₹185.51 crore or 2.4% from ₹7,589 crore in Q2 FY26. EBITDA fell ₹506.97 crore or 26.8% to ₹1,388 crore, and the EBITDA margin declined 6.3 percentage points to 18.7% from 25.0%. Profit before tax was ₹1,177 crore, down ₹676.19 crore or 36.5%, while net profit was ₹851.51 crore against ₹1,353 crore. Basic EPS was ₹10.86 against ₹16.73.

Against the previous quarter, revenue rose ₹284.65 crore or 4.0% to ₹7,404 crore, total income rose 3.1% to ₹7,555 crore, and EBITDA rose ₹195.48 crore or 16.4% to ₹1,388 crore. The EBITDA margin widened 2.0 percentage points to 18.7% from 16.7%. Profit before tax rose 8.8% to ₹1,177 crore, net profit rose ₹65.96 crore or 8.4% to ₹851.51 crore, and basic EPS rose ₹1.09 to ₹10.86. On a standalone basis, revenue was ₹5,067.42 crore and profit after tax was ₹787.03 crore.

What changed in CIPLA's costs and profit?

Total expenses rose ₹372.89 crore or 6.2% to ₹6,378 crore from ₹6,005 crore a year earlier, while total income fell ₹303.30 crore or 3.9%. Employee benefits expense rose ₹159.81 crore or 12.2% to ₹1,475 crore, depreciation, impairment and amortisation rose ₹47.87 crore or 16.1% to ₹344.86 crore, and finance costs rose ₹3.56 crore or 27.0% to ₹16.74 crore. Other expenses rose ₹25.55 crore or 1.4% to ₹1,908 crore, while cost of materials consumed fell ₹4.42 crore or 0.3% to ₹1,524 crore.

Other income fell ₹117.79 crore or 43.8% to ₹151.16 crore from ₹268.95 crore. There was no exceptional item in either quarter. Tax expense fell ₹179.64 crore or 35.9% to ₹320.82 crore from ₹500.46 crore. The filing does not state the reasons for the year-on-year changes in individual cost lines.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹14,523.21 crore against ₹14,546.91 crore in H1 FY26, a decline of ₹23.7 crore or 0.2%. Total income fell ₹189.15 crore or 1.3% to ₹14,885.27 crore, and profit before tax fell ₹1,364.19 crore or 37.6% to ₹2,259.27 crore.

Net profit for H1 FY27 was ₹1,637.06 crore, down ₹1,007.92 crore or 38.1% from ₹2,644.98 crore in H1 FY26. Basic EPS was ₹20.63 against ₹32.79, a fall of ₹12.16 or 37.1%. Total expenses for the half year rose to ₹12,626.00 crore from ₹11,450.96 crore.

What do the balance sheet and cash flow show?

As at 30 September 2026, total assets were ₹43,434.33 crore against ₹42,495.98 crore at 31 March 2026, and total equity was ₹35,522.22 crore against ₹34,520.24 crore. Borrowings stood at ₹267.43 crore against ₹257.97 crore, and cash and cash equivalents were ₹1,659.17 crore against ₹1,018.22 crore. Inventories were ₹6,778.44 crore against ₹6,596.72 crore, trade receivables ₹5,999.88 crore against ₹5,620.05 crore, and trade payables ₹3,266.01 crore against ₹3,229.90 crore.

In the first half of FY27, net cash from operating activities was ₹1,218.67 crore against ₹1,345.34 crore in H1 FY26. Cash flow from investing was ₹445.85 crore against ₹159.41 crore, financing cash flow was a negative ₹1,055.22 crore against a negative ₹1,317.79 crore, and capital expenditure was ₹916.64 crore against ₹665.03 crore.

How has CIPLA done over the last 8 quarters?

Revenue reached its highest point in the series at ₹7,589.44 crore in Q2 FY26 and its lowest at ₹6,541.20 crore in Q4 FY26. Since then it has moved higher, reaching ₹7,119.28 crore in Q1 FY27 and ₹7,403.93 crore in Q2 FY27. The investor presentation described Q2 FY27 as the highest-ever quarterly revenue for the business.

What else did the company announce?

The board approved the appointment of Rashmi Joshi as an additional and independent director for five years with effect from 27 October 2026, subject to shareholder approval. The filing states that she is a qualified Chartered Accountant and Company Secretary with over three decades of experience across multinational organisations. The same-day filings also included the Q2 FY27 investor presentation and the unaudited standalone and consolidated financial results with a limited review report. No dividend or fund raise was stated in the same-day filings provided.

What did CIPLA's management say?

Management maintained its FY27 guidance, including a $1 billion North America annualised exit revenue run rate, an EBITDA margin of 18.5%-20% and R&D spend of 6%-7% of revenue. The company also guided to an effective tax rate of 27%-27.5% for FY27 and said three additional significant U.S. launches remain planned, comprising two respiratory assets and one peptide opportunity. Achin Gupta, Managing Director and Global Chief Executive Officer, said: "We are maintaining both the guidance that the exit run rate for the U.S. would be $1 billion. And for the EBITDA guidance for the full year will be 18.5% to 20%. We are not changing the guidance."

Dinesh Jain, Global Chief Financial Officer, said: "This performance is in line with the guidance of sequential margin expansion, and we remain confident of continuing this trajectory over the remainder of the year." Management expects sequential EBITDA margin improvement in both Q3 and Q4 FY27, and said the U.S. pipeline includes approximately 45 to 50 filings planned over the next three years.

Management identified FDA remediation as a key execution item, with Invagen Unit 3 at VAI classified Voluntary Action Indicated and Pithampur carrying seven Form 483 observations. Other risks listed included disrupted Lanreotide supply, dependence of the U.S. exit run rate on new-product approvals and a rapid supply ramp-up, and cost and pricing headwinds in consumer health. On the call, Gupta said of Ventolin: "It's a very big opportunity. So that itself covers a lot of the delta between this and the exit rate."

How did CIPLA shares react?

In the first 30 minutes after the filing appeared, the stock fell 3.2% from the price at which the filing was published. By the close of the first session that could trade on the news, the stock was up 0.2% from its pre-results close of ₹1,347.1. By the next day's close it was up 1.4% from that pre-results close, and by five sessions later it was up 3.3%.

Over the same closes, the median move across other Pharmaceuticals stocks was 2.0% on the reaction day, 2.6% by the next day and 2.2% by five days, so Cipla lagged the industry median by 1.8 percentage points on the reaction day and 1.3 percentage points by the next day, and was ahead by 1.1 percentage points over five days. On earlier results days the reaction-day moves were -1.5% on 23 July 2026, 2.8% on 13 May 2026, -3.8% on 23 January 2026 and -2.5% on 30 October 2025.

How did other Pharmaceuticals companies do?

Of the 60 Pharmaceuticals companies that have filed this quarter, the median revenue growth was 19.8%. Cipla's revenue declined, and 8 peers grew more slowly than the company while 52 grew faster. Of the 54 peers compared on profit, 39 reported higher profit.