The pharmaceutical giant Cipla, based in Mumbai, recorded a 35% year-on-year decline in consolidated net profit for the September quarter (Q2) of the fiscal year 2026-27 (FY27).
This decrease was attributed to a slowdown in the Active Pharmaceutical Ingredients (API) segments and the business in the United States (US). The company reported a Profit After Tax (PAT) of ₹878 crore, which is lower than the ₹1,351 crore recorded in the same quarter last year.
Operating revenue also decreased by 2.4% year-on-year, amounting to ₹7,404 crore compared to ₹7,589 crore in Q2 FY26.
Revenue Details and Forecasts
According to regulatory filings published by the company, the North American business generated $172 million in revenue for the reporting quarter (equivalent to ₹1,643 crore), which is 19% less than the $233 million (approximately ₹2,039 crore) achieved in Q2 FY26.
During the investor call, Managing Director (MD) and Global CEO Achin Gupta noted that Q2 FY26 revenue improved by $10 million compared to the previous period, and the North American business generated $162 million in Q1 FY27.
Gupta expressed confidence in achieving an annual revenue run rate of $1 billion in its North American (US) business by the end of FY27. He added that the company intends to build on this momentum throughout the year through disciplined commercialization and future developments.
Growth Strategy and Partnerships
The company relies on the commercialization of Ventrolin and the generic Advair Diskus. Furthermore, Cipla plans to launch three new products in the US market, including two respiratory and one peptide molecule, pending approvals.
In the investor presentation, the company announced an exclusive partnership with China's Qilu Pharmaceutical for the commercialization of the biosimilar Keytruda, strengthening its position in complex respiratory therapies and oncology biosimilars.
Cipla's priority is to grow its organic portfolio in the US, aiming to file applications for 45–50 products over the next three years. The company is also considering strengthening its R&D capabilities in the US. Gupta mentioned that four biosimilar candidates are under development targeting global markets.
Regional Results
On the other hand, the company's business in India showed a 12% year-on-year growth for the September quarter, reaching ₹3,516 crore compared to ₹3,146 crore the previous year. Gupta attributed this growth to the strong development of the branded prescription business, which saw a 15% increase in chronic segments such as cardiology, urology, respiratory, and anti-diabetic therapies.
The One Africa business generated ₹1,171 crore in revenue, a 1% year-on-year decrease. Within this segment, South Africa's revenue declined by 3% to ₹872 crore, although Cipla noted that the country's private sector grew 1.3 times faster than the market.
Revenues from emerging markets and Europe remained stable at ₹967 crore despite geopolitical uncertainty. Meanwhile, revenue from APIs and other areas sharply dropped by 59%, totaling only ₹107 crore.
These results were announced during the trading session. Cipla shares closed on the BSE 0.22% lower, at ₹1,350 per share on Tuesday.
