Cipla Q2 Results: US sales deliver sequential growth contrary to expectations; Stock recovers

Drugmaker Cipla Ltd

. delivered US sales worth $233 million during the September quarter on Thursday, October 30, which was higher than most analyst projections and flat on a year-on-year basis. When compared sequentially, the figure was marginally higher. The stock, in response, has recovered from the lows of the day.

Motilal Oswal had projected Cipla's US sales to fall 12% from last year to $220 million, while Kotak estimated sales to decline 3% sequentially to $220 million. For the June quarter, Cipla had reported US sales of $226 million.

By calendar year 2026, Cipla expects to launch four major respiratory assets, including the generic Advair in the fourth quarter of financial year 2026, and three peptide assets, including Liraglutide. Three out of the four respiratory assets are filed from the company's US facilities.

Cipla's net profit for the quarter increased by 3.8% from the same quarter last year to ₹1,351 crore. This is in-line with the CNBC-Tv18 poll projection of ₹1,348 crore.

Revenue for the quarter stood at ₹7,589 crore, higher by 7.6% from last year, and also above the CNBC-TV18 poll estimate of ₹7,370 crore.

Earnings Before Interest, Tax, Interest and Amortisation (EBITDA) remained flat from the base quarter at ₹1,894 crore, which is in-line with the CNBC-TV18 projection of ₹1,882 crore.

EBITDA margin narrowed by 170 basis points to 25% from 26.7% last year. The margin number also met expectations of 25%.

Cipla's India formulations business grew by 7% from last year to ₹3,146 crore, in-line with estimates of 7% to 9% growth. The One Africa business grew 5% from last year to $134 million, while the Emerging Markets and European business saw 15% year-on-year growth to $110 million, which is the highest quarterly revenue for the company in this market.

Commentary on the growth guidance for the rest of the year, price erosion in Revlimid generic and reinspection timeline of the Indore facility are some of the other important things to watch out for during Cipla's results.

Shares of Cipla recovered from the lows of the day and are now trading 0.3% higher at ₹1,586. The stock is up 5% in the last one month.