Cipla Q3 Results: Net Profit Falls 57% to Rs 676 Crore on Lanreotide Production Halt; India Business Grows 10%

Indian pharmaceutical major Cipla on Friday reported a sharp decline in its consolidated net profit for the third quarter of the financial year 2025-26 (Q3FY26), plunging 57% to Rs 675.80 crore. During the same period last year, the company had posted a net profit of Rs 1,570.51 crore. On a sequential basis, profits fell nearly 50% from Rs 1,351.17 crore recorded in Q2FY26.

Cipla Q3 Results FY26: Net Profit Plunges 57% to Rs 676 Cr Amid Lanreotide Production Halt and Labour Code Expenses

The decline was primarily attributed to a production halt at the company's exclusive manufacturing facility for Lanreotide, Cipla's second-largest revenue-contributing tumour therapy. In addition, a one-time expense of Rs 275.91 crore related to compliance with new labour codes weighed heavily on the bottom line. Analysts had expected a net profit of Rs 1,242 crore for the quarter, according to LSEG data cited by Reuters.

Cipla Q3 Revenue Remains Flat; Sequential Dip Observed

Cipla's revenue from operations for Q3FY26 remained largely flat year-on-year at Rs 6,962.97 crore, compared to Rs 6,961.6 crore in Q3FY25. Sequentially, however, revenue declined 6.5% from Rs 7,447.42 crore in the previous quarter. The company's earnings before interest, tax, depreciation and amortisation (EBITDA) fell sharply by 36.9% to Rs 1,255 crore.

Strong Performance in India Counters Global Weakness

Region-wise, Cipla's India business delivered robust growth, with revenue rising 10% year-on-year to Rs 3,457 crore. Key therapies driving this growth included Respiratory, Urology, Cardiac and Anti-diabetes segments, which saw strong double-digit expansion. Cipla noted that the overall chronic therapy mix improved to 62.3%.

Within the Indian market, the branded prescription segment delivered a 10% YoY growth, supported by key therapies like Respiratory, Urology, Cardiac and Anti-diabetes. Foracort emerged as the No.1 brand in the Indian Pharmaceutical Market (IPM) according to IQVIA MAT December 2025 data.

The trade generics business also showed healthy growth, aided by enhanced distribution, new product launches and technological interventions. During Q3FY26, Cipla launched eight new products in India, including entries into the sexual wellness segment.

Cipla's consumer health segment maintained leadership through anchor brands such as Nicotex, Omnigel and Cipladine, which continued to hold top positions in their respective categories. The business is focusing on secondary growth while expanding its distribution network through strategic investments.

North America Business Faces Revenue Pressure

Cipla's North American operations, in contrast, reported a 22% drop in revenue to Rs 1,485 crore ($167 million) during the quarter. Despite this, the company maintained leadership with Albuterol ranked No.1 in the U.S. Albuterol MDI market, capturing a 22% market share.

Cipla plans four major respiratory launches in FY27, including gAdvair and gVictoza, alongside three additional peptide assets, with three of the respiratory assets filed from U.S. facilities.

Emerging Markets, Europe and Africa Deliver Moderate Growth

Cipla's operations in South Africa showed secondary growth of 6.3% in the private market, slightly above the overall market growth of 5.7%, with the prescription business holding the No.2 position. Meanwhile, its Emerging Markets and Europe business reported 7% year-on-year growth in USD terms. The growth was supported by strong performance across Direct-to-Market (DTM) and B2B channels, maintaining steady overall margins.