Cipla soars 8% despite disappointing Q4; what's driving pharma stock?

Going forward Cipla's management expects to pick up momentum in FY27 and aspires $1 billion revenue from the US itself.

Cipla share price today

 

Shares of Cipla extended the up move, soaring 8 per cent to ₹1,432.35 on the BSE in Thursday’s intra-day trade on positive management commentary. In the past two trading days, the stock price of the pharmaceutical company has surged 11 per cent.

 

With the past two days rally, the stock price of Cipla has recovered 23 per cent from its 52-week low of ₹1,165.55 touched on April 2, 2026. It had hit a 52-week high of ₹1,672.20 on October 23, 2025.

 

At 09:20 AM; Cipla was quoting 7.5 per cent higher at ₹1,425.70, as compared to 0.53 per cent rise in the BSE Sensex.

 

 

Cipla Q4 results

 

Cipla, the country’s third-largest pharmaceutical company, on Wednesday reported that its consolidated net profit plunged 54.6 per cent year-on-year (Y-o-Y) to ₹554.6 crore in the fourth quarter (Q4) of the financial year 2025-26 (FY26), compared to ₹1,221.8 crore in the corresponding quarter last year. Similarly, revenue from operations also declined 2.8 per cent to ₹6,541.2 crore.

 

The decline in performance was primarily attributed to the absence of high-margin products such as Lenalidomide and Landreotide, higher research and development (R&D) investments, increased operating costs linked to scaling up its US manufacturing facilities, and the initial impact from geopolitical disruptions in West Asia.

 

Cipla management also highlighted that investments in respiratory launches, peptides and complex generics had impacted near-term profitability. The company said it had significantly increased R&D spending during the year to strengthen its future pipeline across respiratory, biosimilars and differentiated products for developed markets. 

ALSO READ: Stock Market LIVE: Sensex falls 300 pts from day's high |  Q4 results today

 

What's driving pharma stock?

 

Going forward the management expects to pick up momentum in FY27 and aspires $1 billion revenue from the US itself. On the margins front, the management guided for 18.5-20 per cent margin in FY27 with sequential improvement as new complex generics ramps up.

 

On the US business outlook, Achin Gupta, managing director and global chief executive officer of Cipla, said the company is preparing for four respiratory launches and one major peptide launch in FY27, while also ramping up supplies from its newly operational Fall River facility in the US. He added that Cipla recently secured approval for the first AB-rated generic Ventolin from its US site, which is expected to be launched in the coming months.

 

The company also reiterated its long-term focus on biosimilars and complex generics, with plans to add one to two biosimilars annually over the next five to six years. Cipla said it remains open to selective acquisitions and strategic partnerships in the US and European markets to strengthen its differentiated portfolio. 

 

Brokerages view on Cipla post Q4 results 

 

Cipla’s future remains bright as the company expects critical respiratory launches like gSymbicory and gAdvair in coming year and also has a strong future pipeline from other respiratory and peptides space. India's growth is expected to maintain momentum (double digit growth) and so is Africa. Additionally, the company is also focusing on biosimilars and aims to add one to two in-house assets annually, building a pipeline of six to eight assets over the next five to eight years, ICICI Securities said in a note.

 

The brokerage firm believes the company is in good stead with complex US pipeline and a long-drawn India strategy with a blend of branded RxTrade Generics- Consumer Health besides South Africa momentum.

 

The management is confident of better performance from India and US in the ensuing year with better performance in second half. FY26 was year of some consolidation mainly due to genericization of gRevlimid and problems in some of its key products in the US geographies, the brokerage firm said.

 

Motilal Oswal Financial Services in the Q4 result update said they value Cipla at 23x 12M forward earnings to arrive at a target price of ₹1,380. The brokerage firm expects earnings to remain under check due to a reduction in contribution from g-lenalidomide and some gestation period for the accruing of upcoming niche launches. Analysts reiterated a 'Neutral' rating on the stock.

 

Choice Institutional Equities maintain a cautious view on Cipla amid ongoing headwinds including delayed revenue contribution from Lanreotide — which was expected to offset Revlimid-led revenue and margin decline — slower ramp-up of other complex generic launches and elevated R&D and investment spends. Meaningful improvement in revenue and margin is now likely only from H2FY27E, contingent on successful scale-up of new launches, the brokerage firm said.  Check: Top Losers Today  | Top Gainers Today    ======================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.