Cipla earnings fell 35% year on year in the September 2026 quarter as competition and tapering sales of generic Revlimid weighed on its US business. The drugmaker said on October 27 that it expects its upcoming product pipeline to support North American performance.

Key Takeaways

  • Consolidated net profit fell to ₹878 crore from ₹1,351 crore a year earlier, missing analysts’ estimate of ₹942 crore.
  • North American revenue declined 19% year on year, while US revenue of $172 million continued to grow sequentially.
  • India revenue rose 12%, and a presentation change affected reported revenue without changing profit or cash flows.

Cipla earnings and revenue decline

Revenue from operations fell 2.4% year on year to ₹7,404 crore in the second quarter of fiscal 2027. Net profit was below the ₹942 crore analysts’ estimate compiled by LSEG.

Cipla said reported revenue was affected in part by a reclassification effective April 1, 2026. Certain marketing and promotional expenses are now deducted from revenue rather than presented under other expenses. The change had no impact on profit or cash flows.

US sales face Revlimid pressure

The decline in North American revenue reflected continued pressure on generic Revlimid sales as competition increased. Revlimid is Bristol Myers Squibb’s blood cancer drug.

The $172 million US revenue figure measures a narrower business than the North American figure. Cipla said the US business continued its sequential growth trajectory, even as North American revenue fell from a year earlier. Its expectation that upcoming products will support the region is an outlook, not a completed result.

India growth helps offset regional pressure

Domestic revenue rose 12% year on year. India and North America together account for about two-thirds of Cipla’s revenue.

Cipla is also looking to newer Indian launches, including Yurpeak, its brand of Eli Lilly’s tirzepatide, which it markets through a partnership with the US drugmaker. In South Africa, Cipla said its private-market business grew approximately 1.3 times faster than the market.

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