Cipla (CIPLA) Q2 25/26 earnings summary

Executive summary

• 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 markets.

• 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, expanded consumer health, and launched new products in North America and Africa, including entry into obesity care with tirzepatide (Yurpeak) via Eli Lilly partnership.

• U.S. business saw $233 million in revenue, with leadership in albuterol MDI and the launch of the first biosimilar (filgrastim).

• 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 half-year consolidated revenue at INR 14,546.91 crore.

• EBITDA margin at 25%; gross margin at 67%; PAT margin at 17.8% of revenue.

• Profit after tax was INR 1,351 crore for the quarter and INR 2,644.98 crore for the half year.

• 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; cash and cash equivalents increased to INR 10,368 crore year-over-year.

Outlook and guidance

• Full-year EBITDA margin guidance revised to 22.75%-24% (from 23.5%-24.5%), excluding Yurpeak business, due to higher R&D spend and lower Revlimid contribution.

• India business aims to regain growth momentum and outperform the market in branded and trade generics.

• U.S. business expects continued growth in base business, with minimal Revlimid contribution in coming quarters and a sales target of $1 billion next year, contingent on timely approvals.

• Pipeline includes four major respiratory launches (including generic Advair) and three peptide assets by 2026.

• Management expects a favorable outcome in ongoing litigation with the NPPA and has not made provisions for the related demand notices.