Cipla Q1 net profit up 10%, driven by consumer health and generics

Cipla reports a 10% increase in Q1FY26 net profit, fueled by strong performance in the generics and consumer health segments

 

Pharma major Cipla posted a 10 per cent year-on-year (Y-o-Y) increase in its consolidated net profit reaching ₹1,297 crore in the first quarter of 2025-2026 (Q1FY26), up from ₹1,177 crore last year.

 

Revenue from operations also rose by 3.2 per cent Y-o-Y reaching ₹6,837 compared to ₹7,672 crore last year. The increase in profit and revenue was attributed to robust performance in consumer health care and generic markets.

 

Sequentially, the revenue was up by 3.6 per cent increase with the net profit also increasing by 6.2 per cent.

 

Cipla’s stock rose by 2.95 per cent ending the day’s trade at ₹1,531.10 on BSE.

 

 

“I am pleased to share that we continue to make considerable progress across our focused markets. Going ahead, the focus will be on growing our key markets, further building our flagship brands, investing in future pipelines as well as focusing on resolutions on the regulatory front,” said Umang Vohra, managing director and global chief executive officer, Cipla.

 

For FY26, Cipla has guided for earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins between 23.5 per cent and 24.5 per cent. Growth will be driven by respiratory product launches in the US, new rollouts in India and emerging markets, and strong momentum in the glucagon-like peptide (GLP)-1 segment, which is seen as a transformative opportunity. While the US revenue forecasts remain conservative, the company is confident that its expanding pipeline will offset the impact.

 

This quarter, Cipla’s India business reported strong performance across all segments. In branded prescription, key therapies like respiratory, urology, cardiac, anti-diabetes, and anti-infective outpaced market growth, with the chronic portfolio forming 61.5 per cent of sales. 

 

Trade generics saw robust growth, aided by strong execution, new product introductions (including entry into orthopaedics), and tech-led initiatives, with seven product launches during the quarter. In consumer health, anchor brands Nicotex, Omnigel, and Cipladine retained leadership in their categories.

 

In North America, Cipla posted revenue of $226 million, driven by differentiated assets. Albuterol reached 19.5 per cent market share, while Lanreotide reached 21 per cent. Launches like nano paclitaxel vials and Nilotinib capsules are set to boost Cipla’s oncology and complex generics presence. A strategic tie-up will also bring its first US biosimilar to market in Q2 FY26.

 

For Africa, the company delivered a 11 per cent Y-o-Y growth in US $ terms, with private market growth. Cipla ranked number 3 overall in South Africa’s private market, with its prescription business at number 2, driven by growth in key therapies, tender business, and new launches.

 

In the emerging markets and Europe, the company’s focused strategy yielded 8 per cent growth in US $ terms, supported by momentum in both DTM and B2B segments, while maintaining stable margins.

 

Cipla also reported a relatively higher research and development (R&D) spend this quarter at 6.2 per cent of revenue. The company sees its biggest growth opportunity in executing a strong pipeline of new product launches, particularly in the respiratory segment — with 3–4 launches lined up for the US, and several more planned for emerging markets and India.

 

Cipla is also continuing to actively invest in biosimilars and mRNA platforms, with a Centre of Excellence in Europe, capacity building at its Goa facility, and collaboration with Ethris. A biosimilar in supportive therapy is on track for launch in FY26. The company is also advancing early-stage work in chimeric antigen receptors (CAR)-T and cell/gene therapies, with ongoing evaluations and potential partnerships.

 

Cipla holds a strong net cash position of ₹10,800 crore and maintains a cautious, science-led mergers and acquisition (M&A) strategy, prioritising differentiated, patient-centric products over plain-vanilla brand acquisitions. Internal capital expenditure and research and development (R&D) investments remain elevated to support long-term growth.

 

From a risk perspective, potential US tariffs are not expected to materially impact generics, though branded products may face greater pressure. Regulatory scrutiny remains a key risk, particularly in manufacturing compliance.