Cipla Q4 FY 26 Profit Falls 55% To ₹555 Crore, Revenue Dips 3%

Pharma major Cipla Ltd reported a 55% year-on-year (YoY) fall in consolidated net profit to ₹555 crore for the quarter ended March 2026, compared with ₹1,222 crore in the same period last year.

Revenue from operations declined 3% YoY to ₹6,541 crore. At 2:41 pm, Cipla shares were trading at ₹1,335.40 a piece on the National Stock Exchange (NSE), up 3.34%.

The company’s earnings came under pressure as costs and regional performance shifts weighed on margins and profitability during the quarter.

EBITDA Margin Contracts Sharply

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) dropped 35% to ₹997 crore from ₹1,538 crore in the year-ago quarter. The EBITDA margin fell to 15.2% from 22.8% last year, showing a sharp contraction in operating performance.

The decline in margins was driven by weak revenue contributions from select international markets and a fall in high-margin business segments. For the full financial year FY26, Cipla reported:

• A revenue of ₹28,163 crore, up 2% YoY

• An annual profit after tax of ₹3,879 crore, down from ₹5,273 crore in FY25

• An EBITDA of ₹5,925 crore

• An EBITDA margin of 21% from 25.9% in the previous year

India Business Offsets Part of Weakness

Cipla said its India business remained a key growth driver during the quarter. The One India business, which includes prescription drugs, trade generics and consumer health, grew 15% YoY to ₹3,007 crore from ₹2,622 crore.

Within the domestic portfolio, branded prescription therapies such as respiratory, urology, anti-diabetes and cardiac segments continued to show steady growth. Consumer health brands, including Nicotex, Omnigel and Cipladine, retained leadership positions in their categories.

North America and Emerging Markets Under Pressure

The North America business remained weak, with revenue falling 26% YoY to ₹1,414 crore from ₹1,919 crore. The company, however, said it received regulatory approval for the first AB-rated generic version of gVentolin manufactured at its US facility.

One Africa business posted strong growth, with revenue rising 21% YoY to ₹1,236 crore. South Africa alone grew 33% to ₹984 crore. Emerging Markets and Europe revenue declined 9% to ₹819 crore amid geopolitical uncertainty. API and other segments saw a sharp 77% drop in revenue to ₹64 crore.

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Dividend Declaration And Management Commentary

The board recommended a final dividend of ₹13 per share for FY26. The record date for dividend payment has been fixed as 5 June. Managing Director and global CEO Achin Gupta said the company delivered its highest-ever annual revenue during FY26 despite challenges in select markets.

He added that Cipla will continue focusing on flagship brands, pipeline investments and regulatory resolutions going ahead.

Source:

The Economic Times