Cipla Limited reported its highest-ever yearly consolidated revenue of INR 28,163 Cr for the financial year ended March 31, 2026, even as net profit declined sharply and key profitability metrics fell short of internal guidance. The Board of Directors recommended a final dividend of INR 13 per equity share of face value INR 2 each for FY26, subject to shareholder approval at the ensuing Annual General Meeting, with the record date set at June 5, 2026. The audited financial results — both standalone and consolidated — were approved at the Board meeting held on May 13, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors Walker Chandiok & Co LLP issued an unmodified (unqualified) opinion on both the standalone and consolidated financial results. In compliance with Regulation 47 of the SEBI Listing Regulations, the results were subsequently published in Business Standard (English) and Sakal (Marathi) on May 14, 2026, as notified by Company Secretary Rajendra Chopra.

Consolidated Financial Performance

On a consolidated basis, total revenue from operations for FY26 rose to INR 28,162.59 Cr, compared to INR 27,547.62 Cr in the previous year. Net profit attributable to owners of the parent stood at INR 3,879.23 Cr, down from INR 5,272.52 Cr in FY25. EBITDA for the year was INR 5,925 Cr, with a margin of 21.0% — falling short of the company's full-year guidance of 24%. For Q4 FY26, revenue from operations was INR 6,541.20 Cr, while net profit attributable to owners stood at INR 554.64 Cr, below the analyst estimate of INR 720 Cr. EBITDA for the quarter was INR 997 Cr, representing a margin of 15.2%. Basic earnings per share (EPS) for FY26 stood at ₹48.03, compared to ₹65.29 in FY25.

Standalone Financial Performance

On a standalone basis, total revenue from operations for FY26 stood at INR 18,979.95 Cr, compared to INR 19,044.85 Cr in the prior year. Net profit after tax was INR 3,515.18 Cr, against INR 5,157.65 Cr in FY25. Profit before tax on a standalone basis was INR 4,635.94 Cr, compared to INR 6,468.82 Cr in the previous year. Total standalone equity stood at INR 34,201.11 Cr as at March 31, 2026, versus INR 32,099.24 Cr in the prior year. Basic EPS on a standalone basis for FY26 was ₹43.52, compared to ₹63.87 in FY25.

Business Performance

The One India business grew 9% YoY to reach INR 12,680 Cr, surpassing the INR 12,500 Cr annual revenue milestone. Key therapies such as Respiratory, Urology, Anti-diabetes, and Cardiac recorded double-digit growth. North America delivered an annual revenue of $780 Mn, a decline of 13% YoY. On a sequential basis, U.S. sales declined to $155M from $167M in the prior quarter. One Africa achieved a healthy annual growth of 7% YoY in USD terms, recording revenue of INR 4,287 Cr. Emerging Markets and Europe crossed the $400 Mn annualized revenue threshold.

North America Pipeline Expansion

Cipla has outlined a robust pipeline strategy for its North America division across both the respiratory and complex generics segments. In the respiratory segment, 5 assets have been filed, with 4 of those anticipated for commercialization in FY27. Additionally, 4 more respiratory assets are expected to be filed within the next 24 months, and 2 assets are planned to be filed with green propellant in the next 24 months. In the peptides and complex generics space, the North America division has filed 8 assets, with launches anticipated in FY27–FY28. A further 3 assets in this category are expected to be filed within 12 to 24 months.

Operational Highlights and Developments

The company maintained a strong net cash position of INR 10,526 Cr as of March 31, 2026. R&D investments for the quarter stood at INR 509 Cr, or 7.8% of sales. The USFDA completed inspections at manufacturing facilities in Bommasandra, Sitec, and Medispray, with all sites receiving a 'VAI' or 'NAI' classification. The North America business secured approval for the first AB-rated gVentolin with CGT, the first commercial MDI product manufactured from the company's U.S. facility. During the quarter ended March 31, 2026, the Group reassessed its operating segments and determined that it operates as a single operating segment — Pharmaceutical and related products — in accordance with Ind AS 108. Additionally, the company recorded an impairment of ₹42.02 Cr in consolidated results and ₹31.00 Cr in standalone results in respect of associates, on account of changes in certain business conditions and market dynamics.

Inzpera Acquisition

Cipla completed the acquisition of 100% stake in Inzpera Healthsciences Limited for a purchase consideration of ₹110.65 Cr on December 4, 2025. The purchase price allocation resulted in goodwill of ₹66.70 Cr, after netting net identifiable assets acquired of ₹43.95 Cr. The Board also approved a scheme of amalgamation between Cipla Limited and Inzpera Healthsciences Limited on March 19, 2026, subject to requisite approvals including that of the National Company Law Tribunal, Mumbai.

New Labour Codes – Exceptional Item

Effective November 21, 2025, the Government of India consolidated multiple labour legislations into four Labour Codes. The consolidated group assessed the financial implications, resulting in an increase in gratuity and leave liability of ₹275.91 Cr (standalone: ₹244.37 Cr), primarily due to the change in the definition of "wages." This impact was classified as an exceptional item in the financial results for the quarter ended December 31, 2025, and the year ended March 31, 2026.

Consolidated Balance Sheet Highlights

Consolidated total equity as of March 31, 2026, stood at INR 34,520.24 Cr, compared to INR 31,289.25 Cr in the prior year. Cash and cash equivalents were reported at INR 1,018.22 Cr. Total assets increased to INR 42,495.98 Cr from INR 37,387.04 Cr. Goodwill stood at ₹3,754.42 Cr and other intangible assets at ₹2,640.14 Cr as at March 31, 2026.

Consolidated Cash Flow Summary

Net cash generated from operating activities for FY26 stood at ₹3,940.02 Cr, compared to ₹5,004.98 Cr in FY25. Net cash used in investing activities was ₹2,326.13 Cr, while net cash used in financing activities was ₹1,233.65 Cr. Cash and cash equivalents at the end of the year (net of bank overdraft) stood at ₹1,015.39 Cr, up from ₹542.65 Cr at the beginning of the year.

NPPA Litigation

The National Pharmaceutical Pricing Authority (NPPA) has issued demand notices to Cipla since 1998 alleging overcharging under the Drugs (Prices Control) Orders-1995. The total amount covered by notices under litigation, after removing duplications, aggregates to ₹2,011 Cr — comprising principal of ₹863 Cr and interest of ₹1,148 Cr. The company has voluntarily deposited ₹27.07 Cr with the NPPA towards principal against certain demand notices. Cipla has been legally advised that it expects a favourable outcome and has not made any provision in this regard.

Investor Communication

In line with its disclosure obligations, Cipla has made the audio recording of its earnings conference call for the quarter and financial year ended March 31, 2026, available on the company's website at https://www.cipla.com/audio/14837 . The filing was made by Company Secretary Rajendra Chopra on May 13, 2026. The audited standalone financial results are also available on the company's website and on the stock exchange websites.

Cipla witnessed a notable block trade on the National Stock Exchange (NSE), with the transaction amounting to Rs. 15.91 crores. The deal involved approximately 1,11,354 shares, executed at a price of Rs. 1428.60 per share, reflecting significant institutional-level participation in the counter.

Block Trade Details

The following table summarises the key parameters of the block trade recorded on the NSE:

Block trades are large, privately negotiated transactions that are executed outside the open market order book, typically involving institutional investors such as mutual funds, foreign portfolio investors, or other large entities. Such trades are reported separately on the exchange and are closely tracked by market participants as indicators of institutional interest in a particular stock.