Breaking Update: Here’s a clear explanation of the latest developments related to Breaking News:Cipla Q3 Results: Profit slumps 57% YoY to ₹676 crore — Here’s what hit the bottomline– What Just Happened and why it matters right now.
Cipla Q3 Results: Pharma major Cipla posted a massive 57% year-on-year (YoY) decline in its consolidated net profit for the third quarter of the ongoing fiscal on Friday, January 23.
The company posted a net profit of ₹675.80 crore for Q3 FY26, as against ₹1,570.51 crore in the same period last year.
A production halt at the Lanreotide manufacturing facility — the company’s second-highest revenue contributor — along with a one-time expense of ₹275.91 crore related to new labour codes, weighed on the company’s bottom line. Analysts had, on average, expected a profit of ₹1,242 crore, according to a Reuters report citing LSEG data.
The revenue from operations came in at ₹7,074.48 crore, flat compared with ₹7,072.97 crore posted in the corresponding period a year ago.
The earnings before interest, tax, depreciation and amortisation (EBITDA) came in at ₹1,255 crore, down 36.9%
Region-wise revenue breakdown
Revenue from India business rose 10% YoY to ₹3,457 crore as key therapies like Respiratory, Urology, Cardiac, Anti-diabetes grew at strong double-digit market growth, with the overall Chronic mix being improved to 62.3%, said the pharma company.
The generics business recorded healthy growth, supported by execution excellence in distribution, new introductions and technological interventions.
Meanwhile, the North American business faced a 22% slump in revenue to ₹1,485 crore during the quarter under review.
Lanreotide manufacturing is temporarily paused following USFDA observations at our partner Pharmathen’s facility, with re-supply expected in H1 FY27. It added that gRevlimid had a small contribution in US revenues this quarter.
Cipla expects upcoming launches to cushion this decline and provide long-term growth.
The South African business rose 2% while emerging markets and Europe saw a 13% increase.
“Going ahead, the focus will be on growing our key markets, further building our flagship brands, investing in future pipeline as well as focusing on resolutions on the regulatory front,” the company’s management said.
Following the results announcement, Cipla share price slumped almost 5% to ₹1303.80 on the BSE.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions.