Cipla Limited (CIPLA)
₹1,325.10 -0.22% last close, 16 Oct
Q2 FY27 results
📅 Next results: 27 Oct 2026 (board meeting)Cipla Limited's board meets on 27 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Cipla's revenue was ₹7,119 Cr (+2.3% year on year, +8.8% on the previous quarter), and net profit ₹786 Cr (-39.2% year on year); the operating margin was 16.7%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹7,119 | +2.3% | +8.8% |
| Operating profit | ₹1,192 | -32.9% | +24.8% |
| Net profit | ₹786 | -39.2% | +44.7% |
| EPS (₹) | 9.77 | -39.2% | +42.2% |
| Operating margin | 16.7% | — | — |
CIPLA delivery percentage and open interest
NSE end-of-day data for
On Fri, 16 Oct 2026, 62.49% of the CIPLA shares traded on NSE were taken to delivery, against the stock's own 20-session average of 57.63%. That is close to its usual level. In CIPLA futures, open interest fell 0.19% while the futures price fell 0.17%: long unwinding (longs closing out).
Delivery in the last 5 sessions: 66.9% · 44.1% · 67.3% · 64.8% · 62.5%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Cipla Limited has submitted the certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 30th September, 2026. The certificate from Registrar and Share Transfer Agent KFin Technologies Limited confirms that dematerialization requests received between 1st July, 2026 and 30th September, 2026 were processed within 15 days. All eligible certificates were verified, cancelled, and depositories updated accordingly. This is a mandatory procedural filing with no operational or financial impact.
- Regulation 74(5) demat compliance confirmed for the quarter ended 30th September, 2026
- RTA KFin Technologies confirmed requests processed within 15 days of receipt
- Period covered spans from 1st July, 2026 to 30th September, 2026
Cipla Limited announced that Mr. Venkata Sai Mungara, Global Head Supply Chain, is transitioning to the role of Chief of Manufacturing and Supply Chain Operations at Cipla USA Inc., a wholly owned subsidiary. This internal transition is effective October 1, 2026. Consequent to this change, Mr. Mungara will cease to be a Senior Management Personnel (SMP) of Cipla Limited. The US market is strategically important for Cipla, accounting for approximately 29% of company revenues.
- Venkata Sai Mungara transitions to Chief of Manufacturing and Supply Chain Operations at Cipla USA Inc.
- Effective transition date set for 1st October, 2026
- Ceases to be Senior Management Personnel (SMP) of the parent company Cipla Limited
- Cipla USA Inc. is a wholly owned subsidiary operating in the key US market (~29% of revenue)
Cipla Limited has been assigned an Environmental, Social, and Governance (ESG) rating of 68 by SEBI-registered provider Niche Ninety Nine Capability and Certifications (OPC) Private Limited. The company disclosed that the rating was communicated directly by Niche to the NSE on September 11, 2026, and to the BSE on September 17, 2026, without direct prior communication to Cipla. Cipla became aware of the rating via a BSE alert on September 17, 2026, at 18:50 IST and is reporting it under Regulation 30. This rating does not impact company operations or near-term financial performance.
- Cipla assigned an ESG rating score of 68 by Niche Ninety Nine Capability and Certifications
- Rating was directly submitted to NSE on 11th September 2026 and BSE on 17th September 2026
- Cipla notified via standard BSE alert on 17th September 2026 at 1850 hours (IST)
- Company received no direct communication from the rating provider
Cipla's wholly owned subsidiary, InvaGen Pharmaceuticals Inc., has signed an exclusive licensing and supply agreement with China-based Qilu Pharmaceutical for QL2107, a biosimilar to Keytruda (pembrolizumab), for the US market. Under the agreement, Qilu will oversee clinical development, regulatory approvals, and supply, while Cipla USA will handle commercialization. The collaboration expands Cipla's US oncology pipeline with an asset targeting the highest-grossing oncology biologic globally, supporting long-term growth across its US business (which accounts for ~29% of revenues). Financial terms, upfront payments, and royalty splits were not disclosed.
- Exclusive US licensing and commercialization partnership entered for QL2107 (biosimilar to Keytruda/pembrolizumab).
- Partner Qilu manages product development, US FDA regulatory registration, and manufacturing supply.
- Qilu brings a pipeline of 50+ biosimilars, 130+ innovative drugs, and 58 US FDA ANDA approvals to the partnership.
- Complements Cipla's North American portfolio across 70+ markets and 1,500+ products.
Cipla Limited has dispatched notices to its equity shareholders and unsecured creditors following the National Company Law Tribunal (NCLT) Mumbai Bench order dated August 18, 2026. The notice pertains to the Scheme of Amalgamation (by Absorption) of Inzpera Healthsciences Limited into Cipla Limited. NCLT has dispensed with holding shareholder and creditor meetings, instead granting a 30-day window from receipt of notice for any representations or objections to be submitted. The company confirmed it has no secured creditors.
- NCLT Mumbai Bench order passed on August 18, 2026 in C.A. (CAA)/ 114 (MB)/ 2026 regarding the amalgamation scheme.
- Physical and electronic notices dispatched to equity shareholders and unsecured creditors on September 3, 2026.
- Shareholders and creditors given a 30-day period from receipt to submit representations to the NCLT.
- NCLT dispensed with formal voting meetings of equity shareholders and unsecured creditors; zero secured creditors reported.
Cipla has entered into an exclusive license and supply agreement with Sino Biopharmaceutical Limited's subsidiary (CTTQ) for Rolditamig Deuderuxtecan (TQB2102), a potential best-in-class HER2 bispecific antibody-drug conjugate (ADC). Under the deal, Cipla secures exclusive development and commercialisation rights across India, South Africa, and 5 other emerging markets. CTTQ will manufacture and supply the asset, which is being evaluated for HER2-expressing cancers including breast, colorectal, and biliary tract cancers. Financial terms including upfront fees or milestones were not disclosed in the filing.
- Exclusive rights secured for India, South Africa, and 5 other emerging markets (total 7 territories)
- TQB2102 has received 3 Breakthrough Therapy Designations from China's NMPA CDE
- Cipla will manage local clinical development and commercialisation, while CTTQ retains manufacturing and supply
- Strengthens oncology pipeline alongside Cipla's existing portfolio spanning over 1,500 products across 69 markets
Cipla has received a Voluntary Action Indicated (VAI) classification from the USFDA for the inspection of its wholly owned subsidiary, InvaGen Pharmaceuticals Inc., located in Central Islip, New York. The inspection at the Unit 3 manufacturing facility was conducted between July 13 and July 17, 2026. A VAI status indicates that objectionable conditions were found but do not warrant regulatory administrative sanctions, effectively clearing the site for continued standard operations.
- USFDA classified inspection of InvaGen Unit 3 facility as Voluntary Action Indicated (VAI) on August 28, 2026
- Inspection at the Central Islip, Long Island, NY site was conducted from July 13, 2026 to July 17, 2026
- InvaGen Pharmaceuticals Inc. is a wholly owned subsidiary of Cipla Limited
Cipla Limited has announced an internal restructuring to rationalise and simplify its corporate group structure. Under the arrangement, Aspergen Limited (India), a 60:40 joint venture between Cipla and Kemwell Biopharma Private Limited, acquired 100% of Aspergen Inc. (USA). Aspergen Inc. was previously held 60% by Cipla (EU) Limited and 40% by Kemwell Biopharma UK Limited. Consequently, Aspergen Inc. becomes a wholly owned subsidiary of Aspergen Limited (India) with no change in Cipla's effective economic interest.
- Aspergen Limited (India) acquires 100% stake in Aspergen Inc. (USA) to simplify group structure
- Cipla retains its 60% economic interest in Aspergen Inc. via its 60% ownership in Aspergen Limited
- Kemwell Biopharma maintains its 40% joint venture stake in the restructured holding entity
- Nil promoter benefit or external financial outflow involved in this internal realignment
Cipla Limited has submitted an intimation regarding its participation in two upcoming in-person investor conferences in September 2026. The company is scheduled to attend the Jefferies India Forum Conference in Gurgaon on September 17, 2026. Additionally, management will participate in the Kotak Healthcare Conference in Mumbai on September 18, 2026. This is a routine regulatory filing disclosing planned institutional investor interactions.
- Participation scheduled in Jefferies India Forum Conference in Gurgaon on 17th September 2026
- Participation scheduled in Kotak Healthcare Conference in Mumbai on 18th September 2026
- Both meetings are scheduled as in-person conferences with institutional investors and analysts
Cipla Limited has allotted 5,281 fully paid-up equity shares of face value ₹2 each on August 26, 2026, pursuant to employee stock option and stock appreciation rights schemes. Consequently, the company's issued and paid-up share capital increased to ₹1,61,57,16,894 comprising 80,78,58,447 equity shares. The equity dilution from this allotment is immaterial relative to the total share capital.
- Allotment of 5,281 fully paid-up equity shares of face value ₹2 each
- Issued and paid-up share capital expanded to ₹1,61,57,16,894
- Total outstanding share count increased to 80,78,58,447 equity shares
- Shares issued under ESOS 2013-A Scheme and Cipla ESAR Scheme 2021
The USFDA completed a follow-up current Good Manufacturing Practices (cGMP) inspection at Cipla's Pithampur manufacturing facility from 17th August 2026 to 25th August 2026. At the conclusion of the inspection, the company received Form 483 containing 7 inspectional observations. Cipla stated that it will work closely with the USFDA to submit comprehensive remediation responses within the stipulated timeframe. The resolution status of this site is crucial for pending US generic filings and compliance continuity.
- USFDA conducted follow-up cGMP inspection at Pithampur from 17th August to 25th August 2026
- Received 7 inspectional observations under Form 483 upon conclusion
- Follows earlier regulatory intimations dated 18th Feb 2023, 5th Aug 2023, and 18th Nov 2023
- Cipla committed to addressing all observations within the stipulated USFDA timeline
Cipla Limited has received an order dated August 18, 2026, from the NCLT Mumbai Bench regarding the Scheme of Amalgamation of its wholly-owned subsidiary, Inzpera Healthsciences Limited, with Cipla Limited. The Tribunal dispensed with the requirement to hold meetings of equity shareholders and creditors of both companies, setting an appointed date of April 1, 2026. Since Inzpera is a 100% subsidiary, no new shares will be issued, and its existing share capital of ₹56.17 crore will be cancelled upon merger. Cipla has been directed to serve notices to regulatory authorities, including SEBI, stock exchanges, and tax authorities, who have 30 days to submit representations.
- NCLT Mumbai Bench allowed the Scheme Application and dispensed with shareholder and creditor meetings for both entities on August 18, 2026
- Appointed date for the amalgamation of Inzpera Healthsciences into Cipla is fixed as April 1, 2026
- Zero share dilution: all equity shares of Inzpera (paid-up capital of ₹56.17 crore) held by Cipla will stand cancelled upon absorption
- Regulatory authorities given a 30-day notice period to raise representations or objections
Cipla has received updated ESG ratings for FY 2025-26 from two SEBI-registered providers. SES ESG Research assigned a score of 69.9 (Grade B), a slight improvement from 69.3 in the previous year. Conversely, NSE Sustainability Ratings downgraded the company from 69 to 67 (Aspiring category). The company noted that the NSE decline was likely due to a product recall by its US subsidiary in January 2026.
- SES ESG rating improved to 69.9 (Grade B) for FY 2025-26 from 69.3 in FY 2024-25
- NSE Sustainability rating declined to 67 (Aspiring) from 69 in the previous year
- NSE rating decline attributed to a product recall by Cipla USA Inc. in January 2026
- Company maintains a significant liquid investment pool of ₹10,800 Cr for future growth
Cipla's wholly-owned subsidiary, InvaGen Pharmaceuticals, has received an Establishment Inspection Report (EIR) from the USFDA for its manufacturing facility in Hauppauge, New York. This signifies the formal closure of the Pre-Approval Inspection (PAI) that was initiated on February 10, 2026. Given that the US market contributes approximately 29% to Cipla's TTM revenue of ₹28,162 Cr, regulatory clearances for US-based facilities are critical for maintaining the product launch pipeline. This clearance removes a potential bottleneck for new product approvals from this specific site.
- InvaGen Pharmaceuticals is a 100% wholly-owned subsidiary of Cipla Limited.
- The USFDA inspection was a Pre-Approval Inspection (PAI) conducted in February 2026.
- The Establishment Inspection Report (EIR) was received on August 4, 2026, indicating inspection closure.
- The facility is located in Hauppauge, Long Island, New York, USA.
- US market operations represent approximately 29% of the company's total revenue stream.
Cipla Limited has allotted 7,850 fully paid-up equity shares of Rs 2 each on July 31, 2026. These shares were issued following the exercise of options under the Employee Stock Option Scheme 2013-A and the Cipla Employee Stock Appreciation Rights Scheme 2021. The total paid-up share capital of the company has increased to Rs 161.57 crore. This is a routine administrative action with negligible impact on existing shareholders.
- Allotment of 7,850 equity shares of face value Rs 2 each on July 31, 2026
- Total issued and paid-up share capital increased to Rs 1,61,57,06,332
- Total number of equity shares outstanding is now 80,78,53,166
- Allotment made under ESOS 2013-A and ESAR Scheme 2021
Financial Performance
Revenue Growth by Segment
Consolidated revenue grew 6.8% YoY to INR 27,547.62 Cr in FY25. The One Africa segment (South Africa, Sub-Saharan, North Africa) delivered a 14% revenue growth reaching INR 3,827 Cr. South Africa specifically saw a 15% increase in local currency to ZAR 6.3 billion. Q2 FY26 revenue reached a record INR 7,589 Cr, up 8% YoY.
Geographic Revenue Split
India (Domestic) contributes 42% of total revenue, followed by the US at 29%, South Africa at 14%, and Emerging Markets & Europe at 12%. This diversification helps mitigate regional economic downturns.
Profitability Margins
Gross margin stood at 67% in Q2 FY26, driven by a favorable product mix. FY25 PBILDT margins improved by 113 basis points to 25.83% due to cost rationalization and operational efficiency. Profit After Tax (PAT) for FY25 was INR 5,272.52 Cr.
EBITDA Margin
EBITDA margin for Q2 FY26 was 25%. However, the full-year FY26 EBITDA margin guidance has been revised downward to 22.75% - 24% (from 23.5% - 24.5%) due to increased R&D investments and the expiry of exclusivity for key products like Revlimid.
Capital Expenditure
Cipla maintains a cautious approach to large-scale capex following its US$ 550 million acquisition of InvaGen in FY16. Current focus is on expanding API R&D and manufacturing capacities to support long-term growth, though specific INR Cr targets for FY26 are not disclosed.
Credit Rating & Borrowing
Maintains a 'Stable' outlook with an overall gearing of 0.02x as of March 31, 2025. Interest coverage ratio improved significantly to 95.58x in Q1 FY25 from 71.11x in FY24, indicating extremely low borrowing costs and high solvency.
Operational Drivers
Raw Materials
Active Pharmaceutical Ingredients (APIs) and formulation excipients are the primary raw materials. Material costs accounted for INR 2,498 Cr in Q2 FY26, representing approximately 33% of total revenue.
Import Sources
Sourced globally to support manufacturing units in India (Goa, Indore, Pithampur, Kurkumbh, Patalganga), China, and the US (InvaGen and Central Islip).
Key Suppliers
Not specifically named in the documents, but the company utilizes a mix of in-house API manufacturing and external global partners through in-licensing agreements.
Capacity Expansion
Operating with a portfolio of over 1,500 drug types. Plans include expanding API R&D and manufacturing capacities to enhance vertical integration and yield efficiency.
Raw Material Costs
Material costs rose 9.4% YoY to INR 2,498 Cr in Q2 FY26. The company employs a strategy of cost optimization through process efficiency and yield improvements to maintain a 67% gross margin.
Manufacturing Efficiency
Focus on 'operational excellence' and 'productivity' has led to significant cost optimization. The Bommasandra facility received a VAI (Voluntary Action Indicated) status from USFDA, indicating acceptable compliance.
Logistics & Distribution
Distribution is handled through a global network covering 78 markets, with a strategic focus on deepening penetration in core markets in Europe and Emerging Markets.
Strategic Growth
Expected Growth Rate
8%
Growth Strategy
Growth is driven by a strong R&D pipeline (5.6% of revenue), launching 133 new products in FY25, and strategic alliances like the tirzepatide deal with Eli Lilly. The company is also expanding in South Africa's private market, which grew 15% in local currency.
Products & Services
Pharmaceutical formulations and APIs catering to therapeutic segments including anti-infective, cardiac, gynecology, gastrointestinal, respiratory, and oncology.
Brand Portfolio
Yurpeak (tirzepatide), Actor Pharma (OTC brands), and a portfolio of 1,500+ generic and branded drugs.
New Products/Services
Launched 133 products in FY25. Upcoming launches include respiratory assets in Q4 FY26 and the Yurpeak brand for obesity/diabetes management in India.
Market Expansion
Targeting deeper penetration in 'One Africa' and core European markets. The South African business ranks 2nd in the prescription market and 3rd in OTC.
Market Share & Ranking
Ranks 2nd in the South African prescription (Rx) market and 3rd in the OTC segment. It is a market leader in several therapeutic areas like respiratory and anti-infectives.
Strategic Alliances
Exclusive partnership with Eli Lilly to promote and distribute tirzepatide under the brand Yurpeak in India. Increased stake in Cipla (Jiangsu) Pharmaceuticals to 100%.
External Factors
Industry Trends
The industry is shifting toward complex generics and anti-obesity medications (GLP-1s). Cipla is positioning itself through the Eli Lilly alliance and increased R&D for respiratory and oncology assets.
Competitive Landscape
Faces intense competition in the US generics market and South African tender business. Competitors include global generic giants and local players in emerging markets.
Competitive Moat
Moat is built on a massive distribution network, a portfolio of 1,500+ drugs, and high R&D barriers in respiratory medicine. Sustainability is supported by a net-debt-free balance sheet and INR 10,800 Cr in cash.
Macro Economic Sensitivity
Sensitive to US healthcare policies and trade tariffs. Global inflation impacts raw material procurement costs, though partially offset by cost rationalization.
Consumer Behavior
Rising popularity of anti-obesity medications is a noted trend; Cipla is addressing this via the Yurpeak launch. Shift toward private market healthcare in South Africa (77% of their revenue) favors branded generics.
Geopolitical Risks
Geopolitical instability and trade protectionism are identified as key threats that could hamper financial stability and business performance in its 78 markets.
Regulatory & Governance
Industry Regulations
Subject to USFDA inspections; Goa and Indore plants currently have pending observations. Compliance with NPPA (National Pharmaceutical Pricing Authority) in India is a critical monitorable.
Environmental Compliance
Upgraded to 'A' from 'BBB' in MSCI ESG Ratings. Featured in the Sustainable Business COP (SB COP) for energy transition initiatives.
Taxation Policy Impact
Effective tax rate is not explicitly stated, but the company reported a consolidated PAT of INR 5,272.52 Cr on a PBT of INR 6,820.81 Cr for FY25.
Legal Contingencies
Pending litigation with the NPPA regarding drug pricing is a key risk. Crystallization of this liability could impact the financial profile, though current liquidity is adequate to cover contingencies.
Risk Analysis
Key Uncertainties
USFDA regulatory actions (Import Alerts/Warning Letters) could impact 29% of revenue. Pricing pressure in the US generics market and potential US trade tariffs are major uncertainties.
Geographic Concentration Risk
42% of revenue is concentrated in India and 29% in the US, making the company highly sensitive to regulatory changes in these two jurisdictions.
Third Party Dependencies
Relies on in-licensing partners for several high-growth products; however, no single supplier dependency is cited as a critical risk due to diversified sourcing.
Technology Obsolescence Risk
Mitigated by a 1,700-strong R&D team and a 5.6% R&D-to-revenue spend focusing on next-generation respiratory and oncology treatments.
Credit & Counterparty Risk
Liquidity is strong with INR 10,800 Cr in cash and liquid investments. Working capital utilization is low, and the current ratio of 4.26x indicates excellent receivable quality.
