Cipla Q3 result: PAT soars 48.7% to Rs 1,570.5 cr , revenue grows 7.1%

Cipla's stock was up 3 per cent during the day's trade on the BSE in the afternoon

India’s third largest pharma company Cipla posted a 48.7 per cent year-on-year (Y-o-Y) growth in its consolidated profit after tax (PAT) at Rs 1,570.5 crore for Q3FY25, while revenue from operations during the period grew by 7.1 per cent to Rs 7,073 crore. 

 

The increase in the net profit can be attributed to good performance in the domestic market, product mix and operation efficiencies.

 

Sequentially, revenue from operations grew by 0.3 per cent, whereas PAT grew by 20.6 per cent. The firm’s stock rose by 2.16 per cent to 1,426.1 apiece on the BSE. The results came during market hours on Tuesday.

 

The firm’s earnings before interest, tax, depreciation, and amortization (Ebitda) rose by 14.4 per cent year-on-year (Y-o-Y), reaching Rs 2,210.5 crore.

 

Profit exceeded Bloomberg estimates by 0.26 per cent, whereas the revenue fell along the expected lines.

 

Commenting on the result, Umang Vohra, MD and Global CEO, Cipla said, “In Q3FY25, we delivered growth across all our various geographies, despite a supply challenge in the US. We recorded our highest-ever Ebitda margin of 28.1 per cent, driven by mix and other operational efficiencies. Our One-India business grew at a healthy 10 per cent YoY.”

 

On the US policy changes, Vohra said, “It's still early to predict the direction of economic policy under the new administration, especially with regards to decisions like tariffs. While there have been some statements of intent, we will need to wait and see how that plays out. However, looking at the past three years, we've made significant investments, including nearly $100 million to establish two inhaler plants in the US, alongside a strong and large capacity solid dosage plant. We've worked to de-risk and diversify our business model during this period.” 

 

The company said it is closely monitoring the US administration’s policy changes, but remains confident that its diversified business model and investments in facilities like inhaler plants and oral solid dosage units will provide resilience. The company also revealed that the impact of the President's Emergency Plan for AIDS Relief (PEPFAR) programme which has supported HIV/AIDS medicines on Cipla’s business is minimal, contributing less than $5 million in sales with low margins. Cipla said it is not a significant contributor to its margins and will have minimal impact on its overall business performance. Donald Trump administration has already instructed organisations in other countries to stop disbursing HIV medications purchased with US aid.

 

Meanwhile, Cipla also plans to offset the impact of the Revlimid patent expiry in 2026 through new product launches. 

 

Going ahead, the company’s focus will be on growing its key markets, further building its flagship brands, investing in future pipelines as well as focusing on resolutions on the regulatory front. Chronic therapies, which include respiratory, cardiology, diabetes etc, remain key growth drivers and anti-infective and mass-market divisions are also projected to contribute to future growth.

 

Speaking on this year's guidance, Vohra said, “Firstly, we're confident that we'll end the year exceeding the guidance range we've previously set. With a quarter still remaining, we won't be revising our guidance, but it's clear that we'll surpass the original expectations.”

 

Cipla’s performance across markets

 

In India, the branded prescription business saw growth in key therapies such as respiratory, urology, and acute care, despite seasonal challenges in the acute segment. The trade generics division returned to a growth trajectory after facing challenges in recent quarters, driven by strong execution in key therapies, new product introductions, and technological advancements.

 

Cipla's consumer health portfolio continued its robust performance, with flagship brands Nicotex, Omnigel, and Cipladine maintaining leadership in their respective categories.

 

North America delivered quarterly revenue of $226 million, supported by strong momentum in differentiated assets. The company also secured multiple generic drug approvals, including Phytonadione Injectable, Esomeprazole Granules, and Potassium Phosphates Injection.

 

Cipla has resolved most supply chain issues for Lanreotide, which is used to treat gastroenteropancreatic neuroendocrine tumors and expects normalisation in Q1FY26.

 

In Africa, Cipla reported 9 per cent Y-o-Y revenue growth in USD terms. South Africa's private market positioned Cipla as the second-largest player overall, with its prescription business retaining the top spot. This growth was fueled by strong performance in key therapies, new product launches, and significant expansion in the OTC portfolio.

 

Emerging markets and Europe also recorded a 20 per cent growth in USD terms, supported by a deep market focus strategy. Growth was driven by both direct-to-market (DTM) and business-to-business (B2B) categories, with sustained margins contributing to the strong performance.

 

Cipla’s Afrezza, an inhaled insulin product expected to launch in the next 1–2 months. The company is also awaiting regulatory approvals for Abraxane (chemotherapy medication) and Abrev (topical cream), with launches expected by late FY26.

 

Cipla is open to exploring collaborations for GLP-1 licensing, including potential partnerships with Eli Lilly.

 

The total R&D spend reached Rs 360 crore, equivalent to 5.1 per cent of sales.

 

The company reported a net cash balance of Rs 8,947 crore, with debt mainly consisting of lease liabilities and working capital needs.