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Cipla revenue from operations grew by just 3.5% YoY to ₹ 7077 crore

ICICIdirect Research 24 Jul 2026 DISCLAIMER

News: Cipla revenue from operations grew by just 3.5% YoY to ₹ 7077 crore mainly on the back of weak North America Business which de-grew 21% to ₹1532 crore. On the other hand domestic business grew 12.4% to ₹3452 crore, Africa grew 12% to ₹977 crore and RoW market grew 27% to ₹1317 crore. EBITDA de-grew ~33% YoY to ₹ 1192 crore with EBITDA margins of 16.7% down 881 bps; GPM declined by 626 bps and stood at 62.5%. PAT de-grew 39% to ₹ 786 crore. 

View:  The revenues were largely in line as weak US sales were offset by higher growth in other geographies. The management is confident of better performance from India and the US in the ensuing year with better performance in the second half. FY26 was a year of some consolidation mainly due to genericization of gRevlimid and problems in some of its Key Products in the US geographies. Going forward management expects to pick up momentum in FY27 and aspires US$ 1 billion revenue (Q4 exit quarter) from the US itself. On the margins front, the management has guided for 18.5-20% margin in FY27 with sequential improvement as new complex generics ramp up. The future remains bright as the company expects critical respiratory launches like gSymbicort and gAdvair in coming year and also has a strong future pipeline from other respiratory and peptides space. India's growth is expected to maintain momentum(double digit growth). Additionally the company is also focusing on biosimilars and aims to add one to two in-house assets annually, building a pipeline of six to eight assets over the next five to eight years. We believe the company is in good stead with a complex US pipeline and a long-drawn India strategy with a blend of branded Rx- Trade Generics- Consumer Health besides South Africa momentum.

Impact: Positive

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