CIPLA Q2 CONCALL : REVENUE UP 4% QOQ, EBITDA MARGIN EXPANDS 200 BPS; MANAGEMENT RETAINS 18.5–20% FY27 MARGIN GUIDANCE & $1 BN US EXIT REVENUE TARGET

• MANAGEMENT REITERATES FY27 EBITDA MARGIN GUIDANCE OF 18.5–20%, WITH FURTHER SEQUENTIAL MARGIN IMPROVEMENT EXPECTED DURING H2 FY27 • MANAGEMENT MAINTAINS TARGET OF $1 BN ANNUALISED US REVENUE EXIT RUN RATE BY FY27-END, SUPPORTED BY RESPIRATORY PRODUCT LAUNCHES & NEW APPROVALS • MANAGEMENT PLANS THREE SIGNIFICANT US PRODUCT LAUNCHES DURING FY27, INCLUDING TWO RESPIRATORY PRODUCTS & ONE PEPTIDE OPPORTUNITY, SUBJECT TO REGULATORY APPROVALS • MANAGEMENT TARGETS R&D SPENDING OF 6–7% OF FY27 REVENUE, WITH EFFECTIVE TAX RATE EXPECTED AT 27–27.5% • MANAGEMENT PLANS APPROXIMATELY 45–50 US PRODUCT FILINGS OVER THE NEXT THREE YEARS, FOCUSING ON COMPLEX GENERICS & DIFFERENTIATED PRODUCTS • Q2 REVENUE GREW 4% QOQ TO ₹7,404 CR, WHILE EBITDA MARGIN IMPROVED 200 BPS SEQUENTIALLY TO 18.7%, EXCLUDING OTHER INCOME • Q2 GROSS MARGIN STOOD AT 64.4%, WHILE R&D EXPENDITURE REACHED ₹423 CR, REPRESENTING 5.7% OF REVENUE • ONE INDIA BUSINESS GREW 12% YOY TO ITS HIGHEST-EVER QUARTERLY REVENUE, WHILE BRANDED PRESCRIPTION BUSINESS EXPANDED 15% • CHRONIC THERAPIES CONTRIBUTED 60.3% OF PRESCRIPTION PORTFOLIO, WITH ANTI-DIABETES GROWING 50%, DERMATOLOGY 16% & RESPIRATORY 11% • YURPEAK EMERGED AS THE SECOND-LARGEST GLP-1 BRAND, WITH MANAGEMENT HIGHLIGHTING 5–10% MONTHLY GROWTH IN THE TIRZEPATIDE SEGMENT • NORTH AMERICA REVENUE RECOVERED TO $172 MN, UP $10 MN QOQ, SUPPORTED BY IMPROVING US GENERICS PERFORMANCE • GENERIC VENTOLIN SUPPLY IS EXPECTED TO RAMP UP SIGNIFICANTLY IN H2 FY27, WHILE GENERIC ADVAIR RECEIVED US FDA APPROVAL WITH COMMERCIAL LAUNCH TARGETED FOR Q3 • MANAGEMENT DOES NOT EXPECT LANREOTIDE SUPPLY RESUMPTION DURING FY27, WHILE ITS RECOVERY IS EXCLUDED FROM THE $1 BN US EXIT RUN-RATE TARGET • COMPANY PARTNERED WITH CHILU PHARMACEUTICALS FOR PEMBROLIZUMAB BIOSIMILAR COMMERCIALISATION IN NORTH AMERICA, TARGETING THE ANTICIPATED 2029 PATENT-EXPIRY OPPORTUNITY • COMPANY HOLDS NET CASH EQUIVALENTS OF ₹9,823 CR, BUT PITHAMPUR US FDA OBSERVATIONS, US PRODUCT APPROVAL TIMELINES, RESPIRATORY LAUNCH EXECUTION & LANREOTIDE SUPPLY DISRUPTION REMAIN KEY RISKS

CIPLA LTD

← Back to feed