Cipla Q3 Results FY26 Preview: PAT may fall 21%, margins to shrink

Cipla Q3 Results FY26: Shares of Cipla closed marginally higher on Thursday as investors stayed cautious ahead of the company’s December quarter results.

The stock ended at Rs 1,374 on the BSE, up Rs 4.40 or 0.32 per cent. During the session, Cipla shares opened at Rs 1,381.20, touched a high of Rs 1,384.50 and a low of Rs 1,366.70. The company’s market capitalisation stood at about Rs 1.11 lakh crore.

Cipla Q3 results preview

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According to Zee Business Research, Cipla is expected to report a weak set of numbers for the third quarter.
Revenue is estimated at Rs 7,571 crore, compared with Rs 7,073 crore in the same quarter last year, a growth of 7 per cent year-on-year.

EBITDA is seen at Rs 1,816 crore versus Rs 1,989 crore, indicating a decline of 9 per cent. EBITDA margin is expected to fall to 24 per cent from 28 per cent.

Profit after tax is likely to come in at Rs 1,259 crore, down 21 per cent from Rs 1,584 crore a year ago.

US business remains a concern

Zee Business Research expects US base sales to be around $215 million for the quarter.

The expiry of the gRevlimid patent is expected to keep pressure on earnings. Continuous price erosion in gRevlimid and intense competition in the US generics market have impacted sales.

Lanreotide also faces growth risks. Despite Cipla holding around 24 per cent market share, the entry of Amneal could weigh on future performance.

Lower US sales and a weak product mix are key reasons why the quarter is expected to remain subdued.

Domestic growth offers limited relief

The domestic business is expected to grow 7 to 8 per cent year-on-year. However, this is unlikely to significantly offset weakness in the US market, limiting the overall impact on total sales.

Recap of Q2 performance

In the September quarter of FY26, Cipla reported a 3.7 per cent rise in consolidated net profit at Rs 1,353.37 crore, compared with Rs 1,305.01 crore a year ago.

Revenue from operations increased nearly 7 per cent year-on-year to Rs 7,447.42 crore, from Rs 6,961.22 crore in the corresponding period last year.

Cipla stock is currently trading below its 52-week high of Rs 1,673 and close to its 52-week low of Rs 1,335, reflecting cautious sentiment ahead of the Q3 earnings announcement.