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Cipla, India’s third-largest drugmaker by revenue, missed quarterly profit estimates on October 27 as weaker US sales hurt earnings. The pharmaceutical company reported results for the quarter ended September 30, as declining sales of generic Revlimid and stronger competition weighed on its North American business.
Cipla’s consolidated net profit dropped 35% year over year to Rs 878 crore, below analysts’ average estimate of Rs 942 crore. Revenue from operations fell 2.4% to Rs 7,404 crore, although India’s business delivered growth and helped offset overseas pressure.
North American revenue declined 19% during the quarter as sales of generic Revlimid continued to taper amid rising competition. The generic drug is a version of Bristol Myers Squibb’s blood cancer treatment and previously supported Cipla’s US business.
Cipla now faces the challenge of replacing revenue from products losing momentum in a highly competitive market. The company’s performance also highlights its exposure to regional shifts, as India and North America contribute roughly two-thirds of total revenue.
Cipla’s domestic revenue increased 12%, supported by chronic therapies and newer product launches. The company is also counting on Yurpeak, its Indian brand of Eli Lilly’s tirzepatide obesity drug, to support future growth. Cipla sells the treatment in India through a partnership with Lilly.
The company also reported a revenue presentation change effective April 1, 2026, which shifted certain marketing expenses into deductions from revenue. This accounting change reduced reported operating revenue but did not affect profit or cash flow.
Cipla’s next challenge is to strengthen US sales while sustaining domestic growth. Investors will watch whether newer products and obesity treatments can help offset declining contributions from established medicines.
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