Cipla clocks 55 pc drop in its Q4 profit to Rs 555 crore
Mumbai, May 13
Pharma major Cipla on Wednesday reported a 54.6 per cent decline in its consolidated net profit for the fourth quarter of FY26, weighed down by an impairment charge, while revenue also witnessed a marginal drop on a year-on-year basis.
The company posted a consolidated net profit of Rs 554.64 crore in the January-March quarter, compared to Rs 1,221.84 crore reported in the corresponding quarter of the previous financial year (Q4 FY25), according to its stock exchange filing.
Revenue from operations during Q4 FY26 stood at Rs 6,541.20 crore, down 2.80 per cent compared to Rs 6,729.69 crore in the year-ago period.
At the operational level, EBITDA for the quarter fell 38 per cent to Rs 955 crore from Rs 1,537.6 crore in the same period last financial year.
EBITDA margin also contracted sharply to 14.6 per cent from 22.80 per cent on a YoY basis.
Cipla said that during the quarter and financial year ended March 31, 2026, it recorded an impairment charge of Rs 42.02 crore in respect of associates due to changes in certain business conditions and market dynamics.
Excluding the impairment impact, the company's EBITDA for the quarter would have stood at Rs 997 crore, while EBITDA margin would have been 15.2 per cent.
Meanwhile, the Board of Directors of Cipla recommended a final dividend of Rs 13 per equity share for the financial year ended March 31, 2026.
The company said the dividend, subject to shareholder approval at the Annual General Meeting, will be paid within 30 days from the date of the AGM.
The company also announced June 5, 2026, as the record date for determining eligible shareholders for the final dividend payout.
Following the earnings announcement, Cipla shares traded higher in the market. At 1:34 PM, Cipla stock was up 3.7 per cent at Rs 1,340.70 apiece on the NSE.
— IANS
Reader Comments
Impairment charge of Rs 42 crore seems small compared to the overall drop. Still, EBITDA margin falling from 22.8% to 14.6% is serious. Let's see if the new CEO's strategy works. Pharma sector is tough globally.
Dang, that's a steep profit drop. But Rs 13 dividend is decent—keeps retail investors happy. I'm watching the US generics market for Cipla's recovery. India's pharma story is still strong despite bumps.
Margin compression is worrying—input costs and pricing pressure are clearly biting. But hats off to the board for maintaining dividend discipline. For long-term holders, this is a buying opportunity on dips. 📉📈
Impairment charges can happen, but a 55% profit drop is not just 'one-off'. Management needs to address the revenue decline—2.8% down YoY in a growing market is a red flag. Still, Rs 13 dividend is a silver lining.
As a small shareholder, I'm not panicking. Pharma stocks are cyclical. Cipla's R&D pipeline and respiratory franchise are solid. The AGM will be interesting—hope management explains the impairment clearly. India ka growth story abhi baki hai! 💊
J We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.