Cipla clocks 39 pc drop in its Q1 profit, expenses up 14.7 pc
Mumbai, July 23
Pharma major Cipla Limited on Thursday reported a 39.2 per cent year-on-year decline in its consolidated net profit attributable to owners of the parent for the first quarter of FY27.
The company posted a consolidated net profit of Rs 789.05 crore for the quarter ended June 30, 2026, compared with Rs 1,297.91 crore in the corresponding quarter of the previous financial year (Q1 FY26), according to its stock exchange filing.
"We are pleased to share that we continue to make considerable progress across our focused markets. Branded prescription business delivered a robust growth, with key therapies outpacing the market, trade generics recorded healthy growth and anchor brands of Consumer Health Business maintained leadership position," Achin Gupta, MD and Global CEO, Cipla Limited said.
"We expect continued sequential growth in North America, supported by upcoming product pipeline. South Africa private business continued to grow faster than the market," Gupta mentioned.
Revenue from operations rose 2.3 per cent year-on-year to Rs 7,119.28 crore, up from Rs 6,957.47 crore in the June quarter of FY26.
Total income, including other income, increased 1.6 per cent to Rs 7,330.18 crore from Rs 7,216.03 crore, as per the regulatory filing.
The company, however, said the year-on-year revenue comparison was impacted by a change in the presentation of certain marketing and promotional expenses.
Effective April 1, 2026, these expenses are now being shown as a reduction from revenue from operations instead of being classified under sales promotion expenses within other expenses.
For the June 2025 quarter, the amount involved was Rs 115.24 crore. On a comparable basis, after adjusting for the presentation change, the revenue for the year-ago quarter works out to Rs 6,842.23 crore, indicating an underlying revenue growth of around 4 per cent.
Cipla clarified that the accounting presentation change had no impact on profit, earnings per share, total equity or cash flows.
Total expenses during the quarter surged 14.7 per cent to Rs 6,248.25 crore from Rs 5,446.10 crore a year earlier, according to its regulatory filing.
Profit before tax and share of profit or loss from associates declined 38.9 per cent to Rs 1,081.93 crore from Rs 1,769.93 crore in the corresponding quarter last fiscal.
— IANS
Reader Comments
As a shareholder, this is disappointing. But I appreciate the transparency about the expense reclassification. The management's confidence in North America and South Africa growth is reassuring for the long-term.
Expense surge of 14.7% is alarming. Hope this is just a one-time blip and not a trend. Cipla is a solid company with good branded drugs. Need to keep an eye on Q2 results. 💊
Honestly, not too worried. Cipla has been a reliable pharma player for decades. The accounting change makes sense - marketing expenses directly related to revenue should be netted off. Underlying growth is decent. Cheers to the management! 🎉
Pharma sector is tough with price controls and competition. But Cipla's focus on branded prescription and consumer health shows they're adapting. Let's wait for the full year picture. Patience, yaar. 🙏
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