CICipla500087Earnings call transcript

Q2FY27 earnings call: revenue INR7,404 crores, EBITDA margin 18.7%, 3 more US launches lined up

Cipla has shared the transcript of its Q2FY27 earnings call held on 27th October, 2026.

By ScoutQuest · Fri 30 Oct 2026, 5:24 PM IST · 3 min read

Revenue

INR7,404 crores, up 4% Q-o-Q

EBITDA margin (ex-other income)

18.7%, up 200 bps Q-o-Q

North America revenue

$172 million, up $10 million Q-o-Q

Quarter at a glance

• Revenue of INR7,404 crores, a sequential growth of 4% quarter-on-quarter.
• EBITDA margin, excluding other income, at 18.7% for the quarter, a sequential improvement of 200 basis points. Management said this was in line with its guidance of sequential margin expansion.
• Reported gross margin after material costs at 64.4%, up 7% quarter-on-quarter, supported largely by an improved product mix.
• Total expense of INR3,382 crores, up 4% quarter-on-quarter, reflecting planned investment in upcoming product launches and manufacturing readiness.
• R&D investment of INR423 crores, or 5.7% of revenue, largely towards product updates and key development programmes.

India business

• One India delivered 12% Y-o-Y growth and recorded its highest ever quarterly revenue.
• The branded prescription business grew 15%, led by the chronic portfolio: respiratory 11%, antidiabetes 50% (including the GLP), urology 11% and dermatology 16%.
• The overall chronic mix stood at 60.3% as per IQVIA MAT September '26.
• Launches during the quarter included Revesmart in respiratory, Galvus DM and SR in antidiabetes, Dytor E in cardiovascular and Rizontem in anti-infectives.
• The trade generics business delivered a strong double-digit Q-o-Q growth, with 15-plus new launches in the quarter.

North America and other markets

• North America revenue of $172 million, a $10 million improvement versus the previous quarter.
• The company remains number one in the overall U.S. Albuterol MDI market with a 22% share, as per IQVIA data for the last week of September '26.
• EMEU revenues of $101 million in a challenging geopolitical environment, with market-specific headwinds.
• In the South Africa private market, secondary growth of 6.5% against market growth of 5%.

Pipeline and partnerships

• Generic Ventolin was approved in Q1 and generic Advair in Q2; the Advair approval was the company's first DPI approval from its U.S.-based manufacturing network.
• An exclusive partnership with Qilu Pharmaceutical for U.S. commercialisation of a biosimilar to Keytruda, Pembrolizumab.
• An exclusive licensing agreement with CTTQ, SinoBiopharma Group, for a novel HER2 bispecific antibody drug conjugate.
• Four biosimilar programmes are under development for global markets.

Guidance and outlook given on the call

• The pipeline for this financial year includes 3 additional significant launches for the U.S., described as in line with previous guidance, comprising two more respiratory assets and 1 key peptide opportunity.
• Approximately 45 to 50 updates are planned over the next 3 years as part of organic pipeline development, particularly for the U.S. market.
• Management said it remains confident of continuing the sequential margin expansion trajectory over the remainder of the year, and of furthering the North America momentum through new launches and commercial execution.

Regulatory update

• The U.S. FDA classified the inspection at the Invagen Unit 3 facility in New York as Voluntary Action Indicated (VAI).
• A routine GMP inspection at the Invagen manufacturing facility in Long Island, New York concluded with 0 Form 483 observations.
• A follow-up GMP inspection at the Pithampur facility in India resulted in 7 observations in Form 483. The company said it continues to engage constructively with the U.S. FDA and remains committed to quality and compliance across its network.

What this document is

This is a transcript of management's comments and responses to analysts on the earnings call. It carries management's own descriptions of performance, pipeline and outlook, including forward-looking statements that the company itself flagged as subject to risks and uncertainties.

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