Cipla misses Q2 profit forecast on US weakness, shares slip

Indian drugmaker Cipla reported a 35% decline in second-quarter net profit to 8.78 billion rupees ($92.2 million) for the period ending September 30, 2026, missing analyst expectations of 9.42 billion rupees. The profit slump was driven by a 19% revenue drop in North America due to moderating sales of generic Revlimid following patent expiry. Consequently, Cipla shares fell up to 2.7%, despite 12% domestic revenue growth in India supported by Eli Lilly's licensed obesity drug Yurpeak.

Q2 financial results and share price decline

• ▪Cipla's Q2 profit of 8.78 billion rupees missed LSEG analyst forecasts of 9.42 billion rupees, sending Cipla shares down as much as 2.7% to 1,319 rupees.
• ▪Cipla reported that presenting marketing expenses as revenue reductions rather than expenses had no impact on net profit or cash flows.
• ▪Cipla's Q2 operations revenue fell 2.4% to 74.04 billion rupees, partly due to accounting reclassifications of promotional expenses implemented on April 1, 2026.
• ▪Indian drugmaker Cipla's consolidated net profit fell 35% to 8.78 billion rupees ($92.2 million) for the second quarter ended September 30, 2026.

North American sales and generic Revlimid weakness

• ▪Cipla's North America revenue fell 19% during the quarter ended September 30, 2026, marking ongoing weakness in its largest overseas market.
• ▪Sales of generic Revlimid, a blood cancer drug originally developed by Bristol Myers Squibb, continued to moderate in North America throughout 2026 after Bristol Myers Squibb's patent expired.
• ▪Together, the North American and Indian markets account for approximately two-thirds of Cipla's total overall revenue.

Domestic performance and Yurpeak obesity drug growth

• ▪Nuvama Institutional Equities analyst Shrikant Akolkar stated that Cipla's domestic Indian revenue growth will likely track the broader domestic pharmaceutical market.
• ▪Cipla relies on the obesity drug Yurpeak, marketed in India under a licensing agreement with Eli Lilly, to support revenue growth.
• ▪Nuvama Institutional Equities analyst Shrikant Akolkar stated that Eli Lilly's licensed obesity drug Yurpeak has been performing well in India.
• ▪Cipla's revenue from its India business grew 12% in the quarter ended September 30, 2026, demonstrating strong domestic performance.