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Cipla Q1 net profit up 10%, driven by consumer health and generics

Pharma major Cipla posted a 10 per cent year-on-year increase in its consolidated net profit, reaching Rs 1,297 crore in the first quarter of financial year 2026 (Q1FY26), up from Rs 1,177 crore. Revenue from operations also rose by 3.2 per cent YoY, reaching Rs 6,837 crore compared to Rs 6,672 crore last year. The increase in profit and revenue was attributed to robust performance in the consumer healthcare and generic markets. Sequentially, revenue was up by 3.6 per cent, with net profit increasing by 6.2 per cent. The results were announced during market hours. Cipla's stock rose by 2.95 per cent, ending the day's trade at Rs 1,531.10 on the BSE. Umang Vohra, Managing Director and Global Chief Executive Officer of Cipla, stated, 'I am pleased to share that we continue to make considerable progress across our focused markets. Going ahead, the focus will be on growing our key markets, further building our flagship brands, investing in future pipelines, and focusing on resolving regulatory challenges.' For FY26, Cipla has guided for EBITDA margins between 23.5 per cent and 24.5 per cent. Growth will be driven by respiratory product launches in the US, new rollouts in India and emerging markets, and strong momentum in the GLP-1 segment, which is seen as a transformative opportunity. While US revenue forecasts remain conservative due to expected Lenalidomide erosion, the company is confident that its expanding pipeline will offset the impact. This quarter, Cipla's India business reported strong performance across all segments. In branded prescription, key therapies like respiratory, urology, cardiac, anti-diabetes, and anti-infectives outpaced market growth, with the chronic portfolio forming 61.5 per cent of sales. Trade generics saw robust growth, aided by strong execution, new product introductions (including entry into orthopaedics), and tech-led initiatives, with seven product launches during the quarter. In consumer health, anchor brands Nicotex, Omnigel, and Cipladine retained leadership in their categories. In North America, Cipla posted revenue of $226 million, driven by differentiated assets. Albuterol reached 19.5 per cent market share, while Lanreotide reached 21 per cent. Launches like nano paclitaxel vials and Nilotinib capsules are set to boost Cipla's oncology and complex generics presence. A strategic tie-up will also bring its first U.S. biosimilar to market in Q2 FY26. For Africa, the company delivered an 11 per cent YoY growth in USD terms, with private market growth. Cipla ranked number 3 overall in South Africa's private market, with its prescription business at number 2, driven by growth in key therapies, tender business, and new launches. In the emerging markets and Europe, the company's focused strategy yielded 8 per cent growth in USD terms, supported by momentum in both DTM and B2B segments, while maintaining stable margins. Cipla also reported a relatively higher research and development (R&D) spend this quarter at 6.2 per cent of revenue. The company sees its biggest growth opportunity in executing a strong pipeline of new product launches, particularly in the respiratory segment, with 3–4 launches lined up for the US and several more planned for emerging markets and India. Cipla is also continuing to actively invest in biosimilars and mRNA platforms, with a Centre of Excellence in Europe, capacity building at its Goa facility, and collaboration with Ethris. A biosimilar in supportive therapy is on track for launch in FY26. The company is also advancing early-stage work in CAR-T and cell/gene therapies, with ongoing evaluations and potential partnerships. Cipla holds a strong net cash position of Rs 10,800 crore and maintains a cautious, science-led M&A strategy, prioritising differentiated, patient-centric products over plain-vanilla brand acquisitions. Internal capital expenditure and R&D investments remain elevated to support long-term growth. From a risk perspective, potential US tariffs are not expected to materially impact generics, though branded products may face greater pressure. Regulatory scrutiny remains a key risk, particularly in manufacturing compliance. Cipla eyes Day 1 launch of GLP-1 drug in 2026 Cipla has identified the GLP-1 category—led by blockbuster drug Semaglutide—as its most significant therapeutic opportunity in the next five years. The company aims for a Day 1 launch after patents expire in mid-2026, using a mix of in-house and partner filings in key global markets. Calling the GLP-1 space 'transformational,' Cipla is adopting a dual filing strategy through both in-house development and external partnerships to ensure early market entry. 'We see the GLP-1 category, including Semaglutide, as one of the biggest therapy opportunities in the last five years,' said Umang Vohra, Managing Director and Global CEO of Cipla. 'Our approach is a mix of own and partner filings to ensure market presence from day one, especially in key markets.' In India, Cipla is working on an economically viable strategy not only for Semaglutide but for the entire GLP-1 portfolio, anticipating price erosion post-2026 but offset by volume growth. Cipla is also monitoring a recent Delhi High Court order restricting fixed-dose GLP-1 combinations but does not anticipate major disruptions for mono-variant GLP-1 therapies. Earlier, Dr. Reddy's Laboratories revealed plans to enter the GLP-1 space with Semaglutide across 87 countries starting in 2026.