This article first appeared on GuruFocus .
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Revenue:INR7,074 crores, flat YoY.
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EBITDA Margin:17.7%, excluding other income.
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Gross Margin:62.8% after material costs.
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Total Expenses:INR3,187 crores, a 13% increase YoY.
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R&D Investments:INR494 crores, 7% of revenue, a 37.4% increase YoY.
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Profit After Tax:INR676 crores, 9.6% of sales.
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Net Cash Position:INR10,229 crores as of December 31, 2025.
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North America Revenue:$167 million for the quarter.
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One India Business Growth:10% YoY.
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Respiratory Growth:11% YoY.
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Anti-diabetes and Cardiac Growth:13% each YoY.
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Urology Growth:15% YoY.
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South Africa Secondary Growth:6.3% YoY.
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EMEU Revenue Growth:7% YoY in USD terms.
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Warning! GuruFocus has detected 2 Warning Signs with FRA:NC4.
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Release Date: January 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Cipla Ltd ( BOM:500087 ) reported strong performance in its One India business with a 10% year-on-year growth, driven by robust growth in key therapies such as respiratory, anti-diabetes, cardiac, and urology.
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The company achieved significant milestones in its respiratory segment, crossing INR5,000 crores in IPM and outperforming therapy IPM growth by 400 basis points.
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Cipla Ltd ( BOM:500087 ) entered into strategic agreements with Pfizer and acquired Inspira Health Sciences, enhancing its portfolio and distribution network.
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The company launched Afrezza, India's first inhaled rapid-acting insulin, and Yurpeak, a modern therapy for obesity and Type 2 diabetes, expanding its diabetes portfolio.
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Cipla Ltd ( BOM:500087 ) maintained its number one position in the US albuterol MDI market with a 22% market share and is preparing for significant respiratory launches, including generic Advair, to drive future growth.
Negative Points
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Cipla Ltd ( BOM:500087 ) faced a decline in EBITDA margin to 17.7%, primarily due to lower generic Revlimid revenues.
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The company experienced supply challenges and increased competition in North America, impacting its revenue growth.
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Lanreotide production was temporarily paused due to US FDA inspection observations, causing potential short-term disruption in supply.
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The company's gross margin was affected by a decline in lenalidomide sales and product mix, along with increased R&D material costs.
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Cipla Ltd ( BOM:500087 ) revised its US revenue guidance downward due to the anticipated impact of lanreotide supply issues.
Q & A Highlights
Q: What factors contributed to the decline in Cipla's gross profit margin this quarter? A: Ashish Adukia, Global CFO, explained that the decline was primarily due to the impact of lower generic Revlimid revenues. Additionally, there were R&D expenses related to the purchase of certain RLDs and APIs, which also contributed to the lower gross margin.
Q: How is the supply disruption of lanreotide affecting Cipla's US sales? A: Ashish Adukia, Global CFO, noted that the supply disruption of lanreotide, due to a US FDA inspection at the partner's manufacturing facility, has impacted sales. The production halt is expected to affect revenues until the supply resumes in H1 FY27.
Q: Can you provide more details on Cipla's upcoming respiratory product launches in the US? A: Ashish Adukia, Global CFO, mentioned that Cipla plans to launch four significant respiratory products, including generic Advair. Two of these are expected to be large opportunities with minimal competition, potentially providing significant revenue and profitability impact.
Q: What is the status of Cipla's peptide monetization plans for FY27? A: Ashish Adukia, Global CFO, confirmed that the peptide assets are not linked to the partner facility currently facing issues. Cipla is confident about the upcoming launches, including generic Victoza, which has already received approval.
Q: How does Cipla plan to manage its margins in FY27 given the absence of Revlimid revenues? A: Ashish Adukia, Global CFO, stated that while FY27 guidance is not yet finalized, the company plans to offset the loss of Revlimid revenues with new product launches and continued growth in other markets like India, EMEU, and South Africa.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
