Cipla slides 5% in two days after management rejig, Q2 results

Cipla declined 2.05% to Rs 1,508.90, extending losses for the second straight session after the company announced a management reshuffle involving the replacement of its managing director and global chief executive officer.

The stock has fallen 4.55% in two trading sessions since the announcement.

The drug major on Thursday, 30 October 2025, announced that its MD and Global CEO, Umang Vohra, will not seek reappointment. The company stated that Achin Gupta, its current Global COO, will take over as CEO for a five-year term starting 1 April 2026. The appointment will be proposed to the shareholders for their approval. Achin has been appointed as MD & GCEO Designate from 1 January 2026.

Further, the company also announced its Q2 results on Thursday. On a consolidated basis, the drug major reported a 3.7% increase in net profit to Rs 1,353.37 crore on a 7.6% rise in total revenue from operations to Rs 7,589.44 crore in Q2 FY26 over Q2 FY25.

Profit before tax (PBT) stood at Rs 1,853.53 crore in Q2 FY26, marking a 3.6% increase from Rs 1,789.06 crore reported in the same quarter last year. EBITDA rose 0.5% to Rs 1,895 crore in Q2 FY26, as against Rs 1,886 crore reported in Q2 FY25. The EBITDA margin stood at 25% in Q2 FY26.

The companys One India Business reported a 7% year-on-year growth for the quarter. The overall chronic portfolio mix in the domestic market improved to 61.8%. In North America, Cipla reported quarterly revenue of $233 million, supported by traction in differentiated assets.

The One Africa region continued its growth momentum, recording a 5% YoY increase in revenue (USD terms). Cipla's prescription business ranked No. 2 in the market. Emerging Markets and Europe also performed well, registering a healthy 15% YoY revenue growth in USD terms.

The companys R&D investments stood at Rs 539 crore, accounting for 7.1% of sales, driven by product filings and development efforts.

The company reported a strong net cash position of Rs 9,901 crore. The companys debt primarily comprises lease liabilities and working capital requirements.

Umang Vohra, MD and Global CEO, Cipla, said, I am pleased to share that we continue to make considerable progress across our focused markets. In Q2FY26, we delivered our highest-ever quarterly revenue of Rs 7,589 crore, with a robust EBITDA margin of 25%. What makes this performance commendable is the breadth and balance of our growth, driven by contributions across all our focused markets. Our One-India business grew at 7% YoY. Key therapies in the branded prescription business continued to deliver strong market growth, and with the launch of Yurpeak (Tirzepatide), we mark a pivotal step into obesity care through our strategic partnership with Eli Lilly.

Trade Generics recorded double-digit growth, and Anchor brands of the Consumer Health Business maintained their leadership position. With positive traction in our differentiated assets, the US business posted a revenue of $233 million during the quarter. In Q3 FY26, gRevlimid is expected to have a small contribution to the US revenue, with the base business expected to continue growing. Upcoming launches, subject to USFDA approvals, are expected to alleviate gRevlimid revenue decline over the next four quarters, though there may be a timing gap before the full benefit is realized.

In One Africa, we achieved a healthy growth of 5% YoY in USD terms. Emerging Markets and Europe delivered a solid revenue growth of 15% YoY in USD terms on the back of a deep market focus strategy. Going ahead, the focus will be on growing our key markets, further building our flagship brands, and investing in the future pipeline, as well as focusing on resolutions on the regulatory front.

Cipla is a global pharmaceutical company focused on agile and sustainable growth, complex generics, and deepening portfolios in our home markets of India, South Africa, North America, and key regulated and emerging markets.

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