Cipla Q2 results: Profit rises 4%, revenue hits record ₹7,589 crore

The company bets on Eli Lilly tie-up for GLP-1 drug, biosimilars expansion; reaffirms $1 billion US revenue goal

Pharma major Cipla on Thursday posted a 4 per cent year-on-year (Y-o-Y) increase in its consolidated net profit for the second quarter of 2025-26 (Q2FY26) at ₹1,351 crore. The company clocked its highest ever quarterly revenue at ₹7,589 crore, rising 7.6 per cent Y-o-Y. The growth was attributed to robust performances across its markets.

 

Sequentially the net profit grew 4 per cent while revenue rose 9 per cent.

 

The results were announced during market hours. Cipla’s stock fell by 2.5 per cent, ending the day’s trade at ₹1,540 apiece on BSE.

 

The company said its Managing Director & Global Chief Executive Officer (CEO) Umang Vohra has decided to not seek reappointment upon completion of his current term on March 31, 2026.

 

Vohra expressed strong optimism about the company's strategic direction, particularly highlighting the partnership with Eli Lilly for tirzepatide, a treatment for Type-2 diabetes and obesity. The partnership is expected to significantly boost Cipla’s chronic therapies segment, which already accounts for approximately 62 per cent of its India business share.

 

Cipla views tirzepatide as a product backed by "superior science" capable of delivering better patient outcomes, noting that it appears even superior to semaglutide, another glucagon-like peptide-1 (GLP-1) drug.

 

“We believe that tirzepatide is a product with superior science, which has the ability to create the type of outcomes that people want. We kind of see it as superior to semaglutide,” Vohra said. 

 

Regarding its own semaglutide product, Vohra said its launch timeline will depend on achieving regulatory approvals and readiness. He also confirmed the company remains directionally aligned with its $1 billion revenue guidance for the US business, expecting recent product launches to successfully sustain its growth trajectory.

 

“As for the $1 billion guidance for the US, directionally, yes, it should stay. When we gave that guidance, we said we would have launches that would substitute what we might potentially lose with Revlimid (lenalidomide), and directionally that guidance stays even today,” Vohra said.

 

Cipla also plans to expand its biosimilar portfolio beyond its first product agreement last quarter, with several new products added to the pipeline. The company is also enhancing manufacturing capacity within its joint venture, forming a clear blueprint for biosimilars growth.

 

On the Food and Drug Administration’s (FDA’s) recent move to simplify biosimilar studies and reduce unnecessary clinical testing, Cipla termed it a “huge positive” that will cut approval costs by $40-90 million per product, accelerate timelines, and encourage more players, especially from India, to enter the biosimilars space.

 

However, the company doesn’t expect the kind of intense competition seen in chemical generics, given the high investment still required. On MFN (most favoured nation) pricing, Cipla said the impact will likely hit branded biologics first, with limited margin pressure on biosimilars, which remain an attractive $3-5 billion opportunity per molecule.

 

Cipla’s India business growth was led by robust performance across key therapies such as urology, cardiac, anti-diabetes, and dermatology. The trade generics segment also delivered strong double-digit growth, driven by execution excellence, new product launches, and the use of digital and technological interventions.

 

During the quarter under review, Cipla introduced six new products, and entered the orthocare category to expand therapy coverage.

 

In North America, Cipla reported a 2 per cent decline in revenue at $233 million. Cipla said the next few quarters in the North America market will be a “tango” between the gradual phase-out of Revlimid and new product launches. The company expects to see the full impact of Revlimid’s decline in the coming quarter but anticipates this will be offset by a series of upcoming respiratory and peptide launches over the next three to four quarters. While timing uncertainties remain, Cipla reiterated that new launches are expected to fill the revenue gap.

 

For the quarter, the company launched filgrastim, its first biosimilar, in the US, marking a key step into high-growth therapeutic segments. Cipla also secured FDA approval for its generic glucagon injection.

 

The Africa business posted a 5 per cent Y-o-Y growth in dollar terms. In the private market, secondary sales grew 6.2 per cent, outpacing the overall market growth of 4.7 per cent.