Cipla profit falls 37.08% YoY despite a second-quarter margin recovery
Revenue fell 2.44% as expenses rose 5.64% YoY, while operating margin improved 1.99 percentage points QoQ.
Filed 27 Oct 2026, 13:31 IST · Cipla Ltd (CIPLA)
Key takeaways
- Consolidated net profit fell 37.08% YoY as revenue declined while expenses increased.
- Operating margin recovered 1.99 percentage points QoQ to 18.74%, marking a third straight quarterly improvement.
- Cipla's operating margin was 3.98 percentage points below the 22.72% median for 16 reported healthcare peers.
Price around the results
Profit fell as costs and non-operating income worsened
Cipla's consolidated net profit declined 37.08% YoY, with revenue down 2.44% while expenses rose 5.64%; operating profit fell 26.76%. Other income dropped 45.72% and accounted for 12.47% of pre-tax profit, making it a material contributor to reported earnings. The tax rate rose 0.37 percentage points YoY, while interest expense increased 27.01% and depreciation rose 16.12%.
Margin recovery continued but remained below peers
QoQ revenue increased 4.00% while expenses rose 1.50%, allowing operating margin to improve by 1.99 percentage points. Margin has now risen for three consecutive quarters, from 14.60% in Q4FY26 to 16.75% in Q1FY27 and 18.74% in Q2FY27. Even after that recovery, Cipla remained 3.98 percentage points below the 22.72% median for 16 healthcare peers that had reported.
US respiratory position and recent launches remain key business markers
The company said gProventil ranked first in the US market with a 22% total market share, while it maintained the number-two position in India's overall chronic segment. The presentation listed gVentolin, Nintedanib, Dapagliflozin and Liraglutide among recent launches. Management also said it is targeting an 80% renewable electricity share and water neutrality for India manufacturing.
No post-result price move is available to benchmark yet
There is no reported market reaction to these results yet. Across the eight recent result reactions in the history provided, the stock rose three times and fell five times, with a median absolute move of 2.73%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹7,404 cr | ₹7,119 cr | +4.00% | -2.44% |
| Other income | ₹146 cr | ₹209 cr | -30.19% | -45.72% |
| Expenses | ₹6,016 cr | ₹5,927 cr | +1.50% | +5.64% |
| Operating profit | ₹1,388 cr | ₹1,192 cr | +16.40% | -26.76% |
| Operating margin (%) | 18.74% | 16.75% | — | — |
| Interest | ₹17 cr | ₹17 cr | -1.70% | +27.01% |
| Depreciation | ₹345 cr | ₹304 cr | +13.35% | +16.12% |
| Profit before tax | ₹1,172 cr | ₹1,080 cr | +8.51% | -36.76% |
| Tax | ₹321 cr | ₹295 cr | +8.82% | -35.89% |
| Net profit | ₹852 cr | ₹786 cr | +8.40% | -37.08% |
| EPS (₹) | ₹10.86 | ₹9.77 | +11.16% | -35.09% |
Operating margin of 18.74% compares with a Healthcare sector median of 22.72% across 16 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- Cipla targets an 80% renewable electricity share for India manufacturing by FY2029-30.
- Cipla targets water neutrality for India manufacturing.
New products
- Cipla's recent new launches include gVentolin, Nintedanib, Dapagliflozin and Liraglutide.
Competition
- gProventil ranked number one with a 22% total market share in the U.S. market.
- Cipla maintained the number two rank in India's overall chronic segment.
What to watch
- Whether operating margin continues its recovery from 18.74% after three consecutive quarterly improvements.
- Whether revenue growth remains ahead of expense growth after QoQ increases of 4.00% and 1.50%, respectively.
- Whether other income's 12.47% share of pre-tax profit changes in the next quarter.