Cipla expects sequential recovery in North America on new product launches despite tariff uncertainty

Mumbai: Mumbai-based drugmaker Cipla on Thursday reported a 39% fall in consolidated net profit for the June quarter to Rs 789 crore as weakness in its North America business and lower operating margins offset record revenue from its domestic market.

Revenue from operations rose 2.3% to an all-time high of Rs 7,119 crore, driven by strong growth in India, Africa and emerging markets.

EBITDA fell 33% year-on-year to Rs 1,192 crore, while the EBITDA margin narrowed to 16.7% from 25.6% a year earlier.


Managing director and global CEO Achin Gupta said the company remained focused on expanding its flagship brands, investing in future products and addressing regulatory priorities.

The India business delivered a strong performance, with revenue rising 12% to a record Rs 3,452 crore. The US business posted revenue of $162 million during the quarter.

“This was our highest quarterly revenue achieved in the One India business,” said Gupta. “Our chronic mix overall strengthened to 60.4% following our entry into the fast-growing obesity segment through our launch of Yurpeak last quarter.”

“Our pipeline for the year is very promising. It includes several significant launches, particularly comprising three respiratory assets and one key peptide opportunity,” he said.

Cipla shares closed 1.5% lower at Rs 1,393.75 apiece on the BSE on Thursday. The company announced the earnings during market hours.

During the quarter, Cipla commercially launched the first AB-rated generic version of Ventolin in the US after securing regulatory approval in the previous quarter. It also launched generic versions of nintedanib and dapagliflozin in the US.

The company expects sequential growth in North America as supplies of Ventolin ramp up over the coming quarters, supported by its product pipeline.

On proposed US pharmaceutical tariffs, Gupta said Cipla was closely tracking policy developments but cautioned that shifting drug manufacturing cannot happen overnight.

“Manufacturing is an involved process. To move anything is a process which takes years,” he said, noting that 35-40% of Cipla’s manufacturing for the US market is already based in the country.

Gupta described the tariff situation as “evolving” and said Cipla's diversified manufacturing network and US production footprint would help it adapt as policy details emerge.