Cipla is scheduled to announce its Q2 FY26 results on October 30, with expectations of a steady performance supported by healthy growth in its India and South Africa businesses. However, the US segment is likely to remain under pressure due to the tapering of gRevlimid sales and ongoing price erosion in the base portfolio.
Operating margins are projected to stay stable in the 24.5–26.5 percent range, aided by disciplined cost management and a favourable product mix.
A poll of five brokerages indicates Cipla’s revenue may rise 5–6 percent year-on-year to around ₹7,300–7,450 crore, while EBITDA is expected between ₹1,824–₹1,932 crore, implying margins of roughly 25 percent, similar to the previous quarter. Net profit is estimated between ₹1,266 and ₹1,630 crore, depending on foreign exchange movement and tax adjustments.
Segment Performance Overview
Cipla’s India formulations business likely registered 7–8 percent year-on-year growth, driven by its chronic and respiratory therapies portfolio. The mid-September GST rate transition may have temporarily affected trade channels but did not materially impact overall performance.
The South Africa and emerging market segments are expected to have posted double-digit growth, helping offset a softer quarter for the US business.
The US market, which contributes about one-fourth of total revenue, is estimated to have declined 3–5 percent year-on-year to around $225–230 million, primarily due to lower gRevlimid sales (around $25 million in Q2) and continued base-portfolio price erosion. New product launches such as Lanreotide and Abraxane, along with improved supply of peptide-based products, may have partly cushioned the impact.
The API segment likely remained subdued, with an estimated 9 percent year-on-year decline amid weak global demand. Nonetheless, Cipla’s disciplined R&D spending, strong African operations, and cost efficiencies are expected to support margins near 25 percent.
Key Areas to Watch
Investors will focus on:
- Updates on the US business outlook, including progress of Lanreotide, Abraxane, and complex generics.
- Trends in India’s respiratory and chronic therapy segments.
- Developments in the API segment recovery and R&D spending trajectory.
- Any announcements regarding new product launches or regulatory approvals in the US that could shape Cipla’s growth outlook for the second half of FY26.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. All financial figures are based on publicly available data and estimates. Investors should exercise their own discretion and consult a qualified financial advisor before making investment decisions.
