Cipla shares fell over 2 per cent on Tuesday after the company reported a weak performance for the September quarter of FY27. Net profit dropped 35 per cent to Rs 878 crore, while revenue fell 2 per cent to Rs 7,404 crore. Many investors reacted as North America revenue dropped 19 per cent.

Cipla shares fell over 2 per cent on Tuesday after the pharmaceutical company reported a weak performance for the September quarter of FY27.

The pharma company reported a weak consolidated performance for the second quarter of the current financial year, with its net profit declining 35 per cent year-on-year to Rs 878 crore, compared with Rs 1,351 crore in the corresponding quarter last year.

The pharmaceutical company's total income from operations fell 2.4 per cent to Rs 7,404 crore in the July-September quarter of FY27 from Rs 7,589 crore in the year-ago period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 26.8 per cent to Rs 1,388 crore from Rs 1,895 crore in the second quarter of FY26. The EBITDA margin contracted to 18.7 per cent from 25 per cent a year earlier, a decline of 6.3 percentage points.

However, on a sequential basis, Cipla's revenue grew 4 per cent quarter-on-quarter, while its EBITDA margin improved by 200 basis points to 18.7 per cent.

Cipla Q2 results versus Zee Business estimates

Cipla's quarterly performance was mixed against Zee Business estimates, with revenue and net profit falling short of expectations, while EBITDA marginally exceeded estimates.

The company's revenue stood at Rs 7,404 crore against the estimated Rs 7,668 crore, missing expectations by around 3.4 per cent.

EBITDA came in at Rs 1,388 crore, marginally higher than the estimate of Rs 1,384 crore. The EBITDA margin was 18.7 per cent against the estimated 18 per cent.

Net profit stood at Rs 878 crore, falling short of the estimated Rs 966 crore by around 9.1 per cent.

India business grows 12%, North America revenue declines

Cipla's India business recorded its highest-ever quarterly sales in Q2FY27, with revenue rising 12 per cent year-on-year to Rs 3,516 crore from Rs 3,146 crore.

The company's North America business reported revenue of Rs 1,643 crore, down 19 per cent from Rs 2,039 crore in the corresponding quarter last year.

Revenue from the One Africa business declined 1 per cent year-on-year to Rs 1,171 crore. Within this, South Africa revenue fell 3 per cent to Rs 872 crore from Rs 901 crore.

The Emerging Markets and Europe business reported revenue of Rs 967 crore, unchanged from the year-ago period. Revenue from the active pharmaceutical ingredients (API) and Others segment declined 59 per cent to Rs 107 crore from Rs 259 crore.

Overall, the decline in North America and the API and Others segment weighed on the company's consolidated revenue, despite growth in India.

Branded prescription business records growth in India

Cipla said its branded prescription business in India recorded market growth of 15 per cent during the quarter. Key therapies, including respiratory, urology, cardiac, anti-diabetes and dermatology, registered double-digit market growth.

The trade generics business recorded double-digit sequential growth, supported by portfolio expansion and more than 15 new product launches during the quarter.

In the consumer health segment, key brands such as Nicotex, Omnigel and Cipladine maintained their leadership positions in their respective market segments.

The company's research and development (R&D) expenditure stood at Rs 423 crore, accounting for 5.7 per cent of sales. The investments were directed largely towards product filings and key development programmes.

US business reports revenue of USD 172 million

Cipla's North America business reported quarterly revenue of USD 172 million, an improvement of USD 10 million over the previous quarter, continuing its sequential growth trajectory.

The company said Albuterol ranked first in the overall US Albuterol metered-dose inhaler market, with a 22 per cent market share.

During the quarter, Cipla received approval from the US Food and Drug Administration (US FDA) for generic Advair Diskus. The company said this was the first dry powder inhaler approval from its US manufacturing network.

Cipla also entered an exclusive partnership with Qilu Pharmaceutical for the commercialisation of a Keytruda biosimilar, strengthening its presence in oncology biosimilars.

The company said it expects its North America business to be supported by its upcoming product pipeline.

Africa business outperforms market, net cash at Rs 9,823 crore

In South Africa, Cipla's private market business recorded secondary sales growth of 6.5 per cent, compared with market growth of 5 per cent. The company's prescription business retained its second position in the market.

The Emerging Markets and Europe business reported revenue of USD 101 million during the quarter. Cipla said the business operated amid geopolitical uncertainties and market-specific challenges, while maintaining execution and cost discipline across its direct-to-market and business-to-business segments.

The company reported a net cash position of Rs 9,823 crore. Its debt primarily comprised lease liabilities and working capital requirements.

"We continue to focus on sustained growth in our core businesses, improving productivity and strengthening our pipeline to serve patients with trusted, high-quality medicines," Achin Gupta, Managing Director and Global CEO of Cipla, said.

He said the company continued to make progress across its focused markets, with growth in India and sequential improvement in its North America business.