Cipla Q2 Results: Profit Falls 35% to ₹878 Crore as US Sales Drop (Oct 27, 2026)

Cipla’s September quarter was a story of two very different businesses. The Cipla Q2 results for FY27 show consolidated net profit falling 35% year-on-year to Rs 878 crore, from Rs 1,351 crore a year ago, as reported by Moneycontrol and confirmed in the company’s results press release filed with NSE on October 27. Revenue from operations slipped 2.4% to Rs 7,404 crore against Rs 7,589 crore.

Cipla Q2 results: where the profit went

The damage was at the operating level. EBITDA dropped 26.8% to Rs 1,388 crore from Rs 1,895 crore, and the EBITDA margin shrank to 18.7% from 25%, a fall of 630 basis points over the year. Net profit worked out to 11.9% of revenue, per the press release.

The stock didn’t panic. Moneycontrol reported Cipla shares trading 0.6% lower at Rs 1,347 in afternoon trade on Tuesday after the numbers came out.

India grew, America shrank

Here’s the split that explains the quarter. The India business, which covers prescription drugs, trade generics and Cipla Health, grew 12% to Rs 3,516 crore from Rs 3,146 crore. The company called it its highest-ever quarterly sales for One-India. That one segment now makes up nearly half of total revenue, about 47.5% by our calculation from the company’s table.

North America went the other way. Revenue there fell 19% to Rs 1,643 crore from Rs 2,039 crore. Put simply, India added roughly Rs 370 crore of sales over the year, and North America took away about Rs 396 crore. That gap, plus a 59% drop in the API and others line to Rs 107 crore from Rs 259 crore, is why the top line went backwards.

The rest was flat-ish. One Africa came in at Rs 1,171 crore, down 1%, with South Africa down 3% at Rs 872 crore. Emerging Markets and Europe held steady at Rs 967 crore.

The sequential picture is better

Compared with the June quarter, things look less grim. Cipla said revenue grew 4% quarter-on-quarter and the EBITDA margin widened by 200 basis points sequentially. US revenue was $172 million, a $10 million improvement on the previous quarter.

Management also pointed to a few US milestones during the quarter: FDA approval for a generic Advair Diskus, its first dry powder inhaler approval from its US manufacturing network, and an exclusive partnership with Qilu Pharmaceutical to commercialise a Keytruda biosimilar. Cipla said its albuterol inhaler ranked first in the US albuterol MDI market with a 22% share, citing IQVIA data.

The balance sheet stays comfortable. Net cash stood at Rs 9,823 crore, and R&D spend was Rs 423 crore, or 5.7% of sales.

What it means for investors

We’d read this as a quarter where the domestic franchise is doing its job and the US business is still rebuilding. The year-on-year fall looks harsh, but the base included a much stronger US quarter. The question for the next few quarters is whether new launches like the inhaler approval can lift North America back towards last year’s run-rate, because India alone can’t fully offset a 19% slide there.

If you track pharma names, our earlier note on pharma stocks to watch gives some sector context, and the Q2 results calendar for this week lists who reports next. For a framework on reading numbers like these, see our guide on how to analyse quarterly results of a company.

Disclaimer: This article is for information and education only and is not investment advice. Figures are taken from the company’s filing and media reports linked above. Please do your own research or consult a SEBI-registered adviser before investing.