CIPLA's Q2 FY27 numbers came in mixed, with revenue of Rs. 7,403.93 Cr (-2.44% YoY) and PAT growth of -35.05% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 27, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 7,403.93 Cr (-2.44% YoY) |
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| PAT (Q2) | Rs. 877.54 Cr (-35.05% YoY) |
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| EBITDA margin | 18.74% (-623 bps YoY) |
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| EPS (Q2) | Rs. 10.86 (-35.09% YoY) |
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| Market cap | Rs. 109,781.53 Cr |
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| CMP | Rs. 1,358.90 |
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Quarter Snapshot
Q2 FY27 EBITDA margin of 18.74% landed inside management's 18.5%-20% FY27 guidance band, up 199 bps QoQ, though PAT to owners fell 35.05% YoY to Rs.877.54 Cr on the Revlimid base effect and a Rs.117.79 Cr drop in other income. Holding the FY27 margin band requires an H2 margin of 19.23%-22.23% versus the 18.74% Q2 exit rate, consistent with management's H2-weighted US launch plan. The balance sheet remains unlevered with Rs.7,970.88 Cr net cash, and FCF stayed positive at Rs.57.37 Cr despite elevated capex.
Key Investment Insights
Key Positives
- EBITDA margin of 18.74% landed inside management's FY27 guidance band of 18.5%-20% (ex-Lanreotide), up 199 bps from 16.75% in Q1 FY27
- Sequential EBITDA improved Rs.195.48 Cr QoQ, confirming management's stated sequential-improvement trajectory through FY27
- Like-for-like other expenses fell 5.25% YoY (prior-period restated to Rs.2,013.52 Cr)
- Derived gross margin improved to 64.43% from 62.54% in Q1 FY27
- Subsidiary block swung from a Rs.73.11 Cr drag in Q1 FY27 to a Rs.90.51 Cr contribution in Q2 FY27
- Net cash of Rs.7,970.88 Cr with total borrowings including leases of only Rs.699.47 Cr; FCF stayed positive at Rs.57.37 Cr despite the capex cycle
- Inventory build of Rs.(202.59) Cr and receivables growth consistent with launch stocking ahead of H2-weighted US launches
Risk Factors
- PAT attributable to owners fell 35.05% YoY to Rs.877.54 Cr; EBITDA margin compressed 623 bps YoY (18.74% vs 24.97%) on the Revlimid base effect
- Revenue declined 2.44% YoY reported (−0.73% like-for-like after the Rs.131.27 Cr presentation change)
- Other income fell Rs.117.79 Cr YoY to Rs.151.16 Cr, amplifying the pre-tax decline
- CFO of Rs.1,218.67 Cr was 0.74× consolidated net profit, with working capital build of receivables (−Rs.382.26 Cr), inventories (−Rs.117.68 Cr) and payables/provisions (−Rs.238.91 Cr)
- FCF fell to Rs.57.37 Cr from Rs.486.59 Cr in H1 FY26 as capex rose to Rs.1,161.30 Cr
- NPPA/DPCO demand notices of Rs.2,011 Cr remain unprovisioned