Cipla reported a 35% fall in second-quarter net profit to 878 crore rupees as a 19% drop in North America revenue offset 12% growth in its India business.
Indian drugmaker Cipla reported a 35% fall in consolidated net profit for the second quarter of fiscal 2026-27, to 878 crore rupees for the three months ended September 30, down from 1,351 crore rupees a year earlier.
Revenue from operations fell 2.4% to 7,404 crore rupees from 7,589 crore rupees, while earnings before interest, tax, depreciation and amortisation slipped to 1,388 crore rupees and the margin narrowed to 18.7%. The company said the revenue comparison was affected by a reclassification, in place from April 1, 2026, under which certain marketing and promotional expenses are now shown as a reduction from revenue rather than under other expenses, with no effect on profit or cash flow.
The split between its two largest markets explains the quarter. Revenue from the India business rose 12%, with Cipla reporting its highest quarterly sales there, while North America revenue fell 19% to $172 million. Cipla's managing director and global chief executive, Achin Gupta, said branded prescription sales in India grew strongly and the US business continued its sequential growth trajectory, supported by its upcoming product pipeline.
Reuters, reporting the results on October 27, put the profit miss in context: analysts had expected 9.42 billion rupees, according to LSEG data cited in that report, and the US slowdown was tied to moderating sales of generic Revlimid, Bristol Myers Squibb's blood cancer drug, after it went off patent. The company figures for profit, revenue and the regional split match across the company statement as carried by Upstox and APAC News Network and the Reuters account, while the explanation for the revenue reclassification comes from the company itself.
The stakes for Cipla turn on whether the US business stabilises. North America and India together account for about two-thirds of revenue, so a recovery in US sales and new product launches would matter more to the next quarters than the India growth alone. Cipla spent 423 crore rupees on research and development in the quarter, 5.7% of sales, directed at product filings and development programmes, and reported a net cash position of 9,823 crore rupees. Its shares fell as much as 2.7% to 1,319 rupees after the results, according to Reuters, even as the wider pharma index rose 1.9%.