Cipla Q2 FY27 Results (NSE: CIPLA)
Signal: Revenue declined
The read
The key inflection is sequential margin recovery: EBITDA margin expanded 200bps QoQ to 18.7% after falling from 25.0% in Q2FY26 to 17% in Q1FY27, but the trajectory remains fragile because revenue was down 2% YoY and PAT was down 35%, with North America and API weakness offsetting strong India growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹7,404 Cr | -2% | +4% |
| Net profit | ₹878 Cr | -35.0% | |
| EBIT margin | 18.7% |
P&L walk
Revenue was ₹7,404 Cr, down 2% YoY but up 4% QoQ as India growth and North America sequential recovery partly offset weaker API and Others; EBITDA fell 27% YoY but margin recovered sequentially to 18.7%, while PAT declined 35% to ₹878 Cr.
Segments
India was the primary growth engine at ₹3,516 Cr, up 12% YoY, while North America was the main drag at ₹1,643 Cr, down 19% YoY; API and Others fell 59% to ₹107 Cr, partly offset by North America's $10 Mn sequential recovery.
Key positives
- India revenue reached ₹3,516 Cr, up 12% YoY, with branded prescription market growth of 15% and 15+ new trade-generic launches in the quarter.
- North America revenue improved by $10 Mn QoQ to $172 Mn; Albuterol held a 22% U.S. MDI market share and gAdvair Diskus received FDA approval.
- EBITDA margin recovered 200bps QoQ to 18.7%, reversing the recent decline from 15%-17% levels in Q4FY26-Q1FY27.
- R&D investment of ₹423 Cr, or 5.7% of sales, supports product filings and key development programs.
- Net cash remained strong at ₹9,823 Cr, with cash and cash equivalents of ₹10,552 Cr against total debt of ₹699 Cr.
Key concerns
- Revenue declined 2% YoY to ₹7,404 Cr despite India growing 12%, reflecting a 19% decline in North America and a 59% decline in API and Others.
- EBITDA fell 27% YoY to ₹1,388 Cr and EBITDA margin remained 630bps below Q2FY26 at 18.7%.
- PAT declined 35% YoY to ₹878 Cr, materially weaker than the revenue trend and indicating continued earnings pressure from operating performance.
- One Africa revenue declined 1% YoY to ₹1,171 Cr and South Africa revenue declined 3% to ₹872 Cr, despite private-market growth ahead of the reported market.
Research and educational content only. Not investment advice.