Cipla Q3 Results FY26: Profit drops 50% QoQ, Revenue slips 7%

Cipla Q3 Results FY26: Cipla Limited shares slipped as much as 4 per cent in Friday’s session after the company reported lower-than-expected results for the December 2025 quarter.

At around 3.27 pm, Cipla was trading 3.90 per cent lower at Rs 1,316.90 apiece on the NSE, compared with the previous close of Rs 1,370.40. The stock touched an intraday high of Rs 1,385.90 and a low of Rs 1,303.

Profit takes a sharp hit

The pharma major reported a steep fall in profitability during the quarter. Net profit declined 57 per cent year-on-year to Rs 675.80 crore in Q3 FY26, from Rs 1,570.50 crore in the same quarter last year.

On a sequential basis, profit dropped nearly 50 per cent from Rs 1,351.17 crore reported in the September 2025 quarter.

Revenue remains weak

Revenue from operations stood at Rs 7,074.48 crore, almost flat compared with Rs 7,073 crore in the year-ago quarter. On a quarter-on-quarter basis, revenue declined 6.8 per cent from Rs 7,589.44 crore.

Total income for the quarter came in at Rs 7,280.82 crore, lower than Rs 7,858.39 crore in the previous quarter, marking a sequential decline of 7.4 per cent.

Segment performance

The pharmaceuticals segment remained the key contributor to revenue. Segment revenue from pharmaceuticals declined to Rs 6,746.40 crore in the December quarter, compared with Rs 7,291.43 crore in the September quarter.

Revenue from the new ventures segment increased to Rs 381.48 crore from Rs 350.68 crore in the previous quarter.

Total segment revenue stood at Rs 7,127.88 crore, lower than Rs 7,642.11 crore reported in Q2 FY26. After adjusting for inter-segment revenue, total revenue from operations came in at Rs 7,074.48 crore.

Operating performance by segment

Profit before exceptional items, tax and interest from the pharmaceuticals segment declined sharply to Rs 1,122.26 crore in Q3 FY26, compared with Rs 1,825.49 crore in the September quarter.

The new ventures segment reported profit of Rs 60.79 crore, higher than Rs 41.22 crore in the previous quarter.

Total segment result stood at Rs 1,183.05 crore, down from Rs 1,866.71 crore in Q2 FY26.

One-time cost impacts margins

Cipla said profitability was impacted by a one-time cost linked to the implementation of the new labour code. The one-time expense stood at Rs 276 crore during the quarter.

EBITDA and operating performance

EBITDA declined 36.7 per cent year-on-year to Rs 1,255 crore, compared with Rs 1,989 crore in the corresponding period last year.

Earnings before interest and tax for the pharmaceuticals business fell to Rs 1,122 crore, from Rs 1,888 crore in the same quarter last year.

US business slows

Cipla’s US business saw a sharp sequential slowdown. Revenue from the US market declined to $167 million in Q3 FY26, compared with $233 million in the previous quarter.

Cipla shares will remain in focus as investors track management commentary on one-off costs, margin recovery and demand trends across key markets.