Target: ₹1,732
CMP: ₹1,438.65
Cipla’s revenue for Q4 FY26 stood at ₹6,541.20 crore, reflecting a 3% year-over-year decline. EBITDA amounted to ₹997 crore, down 35% year-over-year, while net earnings were reported at ₹554.60 crore, a decrease of 55% year-over-year. Although these figures fell short of consensus forecasts, they surpassed the company’s own estimates.
The company experienced notable growth in India and Africa, with increases of 15% and 21% year-over-year, respectively. This growth in India was bolstered by in-licensing agreements. The quarter included significant contributions from in-licensed products such as the Eli Lilly obesity drug and several items from Pfizer’s portfolio (Corex, Dolonex, and Neksium), which together are estimated to have contributed approximately 400-500 basis points to the year-over-year growth.
In contrast, North America showed a steep decline of 26% year-over-year, primarily due to the loss of high-value products such as gRevlimid and the discontinuation of lanreotide. EBITDA margins decreased by 760 basis points year-over-year, attributed to a reduction in high-value assets coupled with rising R&D investments. R&D expenses rose by 20% year-over-year, now constituting 7.8% of sales compared to 6.3% in Q4 FY25.
The company anticipates that full-year EBITDA margins will range between 18.5% and 20%, expecting improvements in the second half of the year driven by a ramp-up in U.S. operations. By Q4 FY27, the projected U.S. run rate is set to approach $250 million, up from the current $155 million. The company has not yet incorporated this U.S. guidance into its financial projections. Upcoming key product launches include gVentolin, gAdvair, gSymbicort, and teduglutide.
Based on updated projections, the company maintains a “Buy” rating with a price target of ₹1,732, based on a multiple of 25 times the FY28 estimated EPS.
Published on May 14, 2026
