Cipla (CIPLA) Q2 25/26 earnings summary

Executive summary

• Achin Gupta will become CEO and MD from April 2026, succeeding Umang Vohra, with a focus on continuity and innovation across key markets.

• Achieved record quarterly revenue of INR 7,589 crore in Q2FY26, up 8% year-over-year, with robust profitability and strong performance across India, U.S., Africa, and EMEU.

• EBITDA reached INR 1,895 crore (25% of revenue), and PAT was INR 1,351 crore (17.8% of revenue), both showing year-over-year growth.

• Maintained leadership in chronic therapies in India, expanded consumer health, and launched new products in North America and Africa.

• Unaudited consolidated and standalone financial results for the quarter and half year ended 30th September 2025 were approved and released, with statutory auditors providing an unmodified review conclusion.

Financial highlights

• Quarterly revenue grew 8% year-over-year to INR 7,589 crore, the highest ever, with consolidated revenue for Q2 FY26 at ₹7,589.44 crore.

• EBITDA margin (excluding other income) at 25%; gross margin at 67%, impacted by product mix and R&D material costs.

• Profit after tax was INR 1,351 crore, representing 17.8% of sales; effective tax rate at 27%.

• R&D investment for the quarter was INR 539 crore (7.1% of revenue), trending higher due to accelerated filings and new programs.

• Net cash balance at INR 9,901 crore after debt and dividend payout; debt including lease liability at INR 467 crore.

Outlook and guidance

• Full-year EBITDA margin guidance revised to 22.75%-24% (previously 23.5%-24.5%), excluding Yurpeak business.

• R&D spend expected to be 0.5% of revenue higher than planned, driven by new and accelerated programs.

• U.S. revenue expected to approach $1 billion in FY 2027, contingent on timely product approvals.

• India business expected to regain and potentially exceed market growth, with strong chronic and branded segments.

• Plans to launch four major respiratory assets in North America by calendar year 2026, including gAdvair in Q4FY26.