Cipla Q2 FY27 Results: Revenue Falls 2.4% And Net Profit Drops 35% Amid Weak North America Sales

The Cipla results today reported a revenue of ₹7,404 crore in Q2 FY27, down 2.4% from ₹7,589 crore a year ago. Net profit fell 35% to ₹878 crore from ₹1,351 crore in the same quarter last year. Weaker sales in North America weighed on the overall performance, despite healthy growth in the domestic business.

Cipla Q2 Results: Other Key Highlights

Cipla’s EBITDA declined to ₹1,388 crore from ₹1,895 crore a year ago. Its EBITDA margin also declined to 18.7% from 25% in Q2 FY26. The company, however, did better than the previous quarter, with revenue rising 4% sequentially. Its EBITDA margin improved by 200 basis points.

The domestic business was a bright spot. India revenue grew 12% to ₹3,516 crore, marking the company's highest quarterly sales in the market. North America revenue fell 19% to ₹1,643 crore. One Africa revenue declined 1% to ₹1,171 crore, while Emerging Markets and Europe remained flat at ₹967 crore. API and other revenue saw the steepest fall, dropping 59% to ₹107 crore.

Cipla also reported a net cash position of ₹9,823 crore. It spent ₹423 crore on research and development (R&D), or 5.7% of sales, during the quarter.

After the earnings announcement, the Cipla share price was trading in red. At 02:53 pm the shares were trading at ₹1,342.50 apiece, down 0.93% on the National Stock Exchange (NSE).

What Led To Cipla's Mixed Performance In Q2?

Cipla's India business continues to grow on the back of demand for prescription medicines. Its branded prescription business recorded 15% market growth. Respiratory, urology, cardiac, anti-diabetes and dermatology therapies all posted double-digit market growth. Trade Generics also saw double-digit growth over the previous quarter, helped by more than 15 product launches.

North America remains a mixed picture. Revenue reached $172 million, up $10 million from the previous quarter, but still below year-ago levels. Cipla's Albuterol inhaler held a 22% share of the US market, ranking first in its category. The company also received US FDA approval for gAdvair Diskus, its first dry powder inhaler approved from its US manufacturing network. It has partnered with Qilu Pharmaceutical for commercialisation of a Keytruda biosimilar in the US.

In Africa, South Africa's private market business grew 6.5%, ahead of the market's 5% growth. Despite geopolitical uncertainty and some market-specific challenges, Emerging Markets and Europe generated $101 million of revenue.

Also Read - Jio Platforms Listing Date: Reliance Jio To Debut On Stock Exchanges On 28 October After Bumper Subscription During Bidding Period