Cipla slips after Q2 PAT drops 35% YoY
EBITDA fell 26.7% year on year to Rs 1,388 crore from Rs 1,895 crore. The EBITDA margin contracted to 18.7% from 25% a year earlier, although it expanded 200 basis points sequentially.
Profit before tax stood at Rs 1,177 crore in Q2 FY27, down 36.5% year on year from Rs 1,854 crore.
Total expenses increased 5.64% year on year to Rs 6,016 crore from Rs 5,695 crore. Material costs rose 5.44% to Rs 2,634 crore from Rs 2,498 crore, while employee benefits expense increased 12.17% to Rs 1,475 crore from Rs 1,315 crore. Depreciation, impairment and amortisation expense climbed 16.16% to Rs 345 crore from Rs 297 crore.
Cipla's India business revenue increased 12% year on year to Rs 3,516 crore. North America revenue declined 19% to Rs 1,643 crore, while One Africa revenue fell 1% to Rs 1,171 crore. Emerging Markets and Europe revenue remained flat at Rs 967 crore, while API and Others revenue dropped 59% to Rs 107 crore.
Research and development expenditure stood at Rs 423 crore, equivalent to 5.7% of sales. The company reported a net cash position of Rs 9,823 crore.
Cipla managing director and global CEO Achin Gupta said the company continued to make progress across its focus markets. He noted that the India business delivered 12% year-on-year growth, while the US business recorded quarterly revenue of $172 million. The company expects its upcoming product pipeline to support performance in North America.
Cipla is a global pharmaceutical company focused on complex generics and expanding its presence in India, South Africa, North America and other regulated and emerging markets. Its portfolio includes respiratory, anti-retroviral, urology, cardiology, anti-infective and central nervous system products. The company operates 46 manufacturing sites, producing more than 1,500 products across over 50 dosage forms and serving more than 80 markets worldwide.
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