Cipla faces GST inspection in Maharashtra, operations unaffected

Drug major Cipla Ltd on Thursday (February 5) said the Goods & Service Tax Department, Maharashtra, initiated inspection and search proceedings at certain company facilities and offices in the state. The inspection is being carried out under the Maharashtra Goods & Services Tax Act, 2017.

The company received the direction for the inspection/search on February 5, 2026, at 12.30 pm. The proceedings relate to areas including payment of tax, claim of input tax credit, and refunds.

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Cipla stated that the inspection/search has no financial impact on the company and has not affected its operations. The company is providing full cooperation and assistance to the authorities during the process.

Third quarter results

Net profit for Q3FY26 fell 57% from last year to ₹675.8 crore from ₹1,570.5 crore last year. The figure is well below the CNBC-TV18 poll estimate of ₹1,224 crore. Profitability took a hit due to the one-time cost of ₹276 crore on account of the new labour code. But even adjusting for the one-time impact, profitability was lower on a year-on-year basis.

Revenue growth for the quarter was flat at ₹7,075 crore from ₹7,073 crore last year. The poll had projected the figure to be ₹7,557 crore.

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Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter stood at ₹1,255 crore compared to ₹1,989 crore last year, a 36.7% drop, and below the forecast of ₹1,696 crore. EBITDA margins saw a sharp erosion during the quarter, down by over 1,000 basis points to 17.7% from 28.1% last year. The poll had projected the figure to be 22.4%.

Cipla's revenue from the US business declined sequentially to $167 million from $233 million in the September quarter. EBIT for the pharmaceuticals segment narrowed to ₹1,122 crore from ₹1,888 crore during the same quarter last year.

Shares of Cipla Ltd ended at ₹1,332.80, up by ₹7.25, or 0.55%, on the BSE today, February 5.

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