Pharmaceutical major Cipla reported a 35 per cent year-on-year decline in consolidated profit after tax (PAT) to ₹878 crore for the second quarter of FY27, compared with ₹1,351 crore in the corresponding quarter last year, as revenue from operations fell 2 per cent to ₹7,404 crore.
The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) stood at ₹1,388 crore, down from ₹1,895 crore a year ago. The EBITDA margin contracted to 18.7 per cent from 25 per cent in Q2 FY26, according to the company’s unaudited financial results announced on Tuesday.
Despite the year-on-year decline, Cipla reported sequential improvement in its performance. Revenue grew 4 per cent quarter-on-quarter, while the EBITDA margin expanded by 200 basis points to 18.7 per cent, reflecting a recovery in operating performance.
India remained the company’s strongest growth market, with quarterly sales rising 12 per cent year-on-year to ₹3,516 crore, compared with ₹3,146 crore in the corresponding period last year. The domestic business recorded its highest-ever quarterly sales, supported by branded prescriptions, trade generics and consumer health care.
Cipla said its branded prescription business in India grew 15 per cent, with respiratory, urology, cardiac, anti-diabetes and dermatology therapies registering double-digit growth. Its trade generics business also delivered strong double-digit quarter-on-quarter growth, supported by more than 15 new launches during the quarter. Consumer health care brands Nicotex, Omnigel and Cipla D’line maintained leadership positions in their respective market segments.
However, performance across international markets remained mixed. Revenue from North America declined 19 per cent year-on-year to ₹1,643 crore from ₹2,039 crore. The company reported quarterly revenue of $172 million from the region, an improvement of $10 million over the previous quarter.
Cipla said albuterol ranked first in the overall US albuterol metered-dose inhaler market, with a 22 per cent market share. The quarter also saw regulatory milestones, including the US Food and Drug Administration’s approval of gAdvair Diskus, the first dry powder inhaler approval from the company’s US manufacturing network. Cipla also entered an exclusive partnership with Qilu Pharmaceutical for the commercialisation of a Keytruda biosimilar, strengthening its presence in oncology biosimilars.
Revenue from One Africa declined marginally by 1 per cent to ₹1,171 crore. In South Africa, the private-market business recorded growth of 6.5 per cent, compared with market growth of 5 per cent, and retained its second position in the prescription business.
Emerging Markets and Europe reported flat year-on-year revenue at ₹967 crore, while the API and Others segment registered a sharp 59 per cent decline to ₹107 crore. Total quarterly sales across the company’s businesses stood at ₹7,404 crore, against ₹7,589 crore a year earlier.
Cipla’s research and development expenditure stood at ₹423 crore, equivalent to 5.7 per cent of sales, with investments directed primarily towards product filings and key development programmes. The company reported a net cash position of ₹9,823 crore, while its balance sheet showed total debt of ₹699 crore as of September 2026, compared with ₹467 crore a year earlier.
“We are pleased to share that we continue to make considerable progress across our focused markets. In Q2FY27, we delivered global revenues of ₹7,404 Cr with a sequential growth of 4 per cent QoQ, while EBITDA margin expanded by 200 basis points QoQ to 18.7 per cent,” said Achin Gupta, managing director and global chief executive officer of Cipla.
Gupta said the India business grew 12 per cent year-on-year, while the company expected North America’s performance to remain supported by its upcoming product pipeline. He added that Cipla would continue to focus on sustained growth in its core businesses, improving productivity and strengthening its pipeline to serve patients with trusted, high-quality medicines.
