Cipla Q4 Results: Stock gains after US sales, ex-impairment margins meet expectations

Shares of drugmaker Cipla Ltd. gained as much as 4% after the company's results, reported on Wednesday, May 13, and adjusted for their impairment cost, were in-line with expectations for the January-March period, as were sales from the core North American market.

Cipla's net profit fell 54.6% from the same quarter last year to ₹554.6 crore, lower than the CNBC-TV18 poll of ₹724 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter declined 38% year-on-year to ₹955 crore, lower than the CNBC-TV18 poll of ₹1,034 crore. EBITDA was impacted due to an impairment cost of ₹42 crore during the quarter.

Adjusted for the impairment cost, Cipla's EBITDA would be ₹997 crore, largely in-line with expectations, and margins would be 15.2%, also in-line with the 15.3% projection.

Including the impairment cost, Cipla's EBITDA margin stood at 14.6% from 22.8% last year.

The Impairment Cost

During the quarter, Cipla had recorded an impairment of ₹42.02 crore with regards to associates, due to charges in certain business conditions and market dynamics.

Geographic Performance

Cipla reported US sales at $155 million compared to $167 million in the previous quarter. Estimates had a wide range from $136 million to as high as $168 million.

Higher competition in the cancer drug Revlimid generic weighed on the sales in the US market.

One India business grew at 15% from last year with all three segments seeing double digit growth. The branded prescription business sustained the growth momentum in key chronic therapies. Growth also continued in the trade generics and anchor brands of CHL.

Growth momentum also remained strong in the One Africa business with overall revenue growing 14% from last year in US Dollar terms.

Emerging Markets and European business saw revenue of $90 million during the quarter, while R&D investments stood at 7.8% of overall sales.

Cipla's board has also approved a final dividend of ₹13 per share. The record date for this dividend payout has been fixed as June 5, 2026.

Shares of Cipla are now trading 2.8% higher at ₹1,328.5. The stock has risen 10% over the last one month.