Cipla (CIPLA) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue was INR 7,403.93 crore, down from INR 7,589.44 crore a year earlier; One India recorded its highest-ever quarterly revenue.

• U.S. generic Advair Diskus received FDA approval; South Africa private-market growth outpaced the market.

Financial highlights

• Revenue was INR 7,404 crore, up 4% QoQ; EBITDA was INR 1,388 crore and margin excluding other income was 18.7%, versus 25.0% a year earlier.

• PAT attributable to shareholders was INR 878 crore, or 11.9% of sales, versus INR 1,351 crore and 17.8% a year earlier; consolidated net profit in the financial results was INR 851.51 crore.

• Gross margin after material cost was 64.4%; R&D expense, including depreciation, was INR 423 crore, or 5.7% of revenue.

• Consolidated H1 revenue was INR 14,523.21 crore versus INR 14,284.46 crore; H1 net profit was INR 1,637.06 crore versus INR 2,644.98 crore.

Outlook and guidance

• FY27 EBITDA margin guidance remains 18.5%-20%, with sequential improvement expected in each remaining quarter, supported by U.S. business ramp-up.

• U.S. annualized exit revenue run-rate guidance remains $1 billion; growth is expected from Ventolin and Advair ramp-ups and three further significant launches.

• Generic Advair is expected to launch in Q3, with revenue building in Q3 and Q4; three pending U.S. launches are expected to receive FY27 approval, subject to FDA timing.

• FY R&D expense guidance remains 6%-7% of revenue; full-year tax rate is expected at 27%-27.5%.