Cipla (CIPLA IN) – Q1FY27 Result Update – Timely US launches will be key – ACCUMULATE
Published on 24 Jul 2026
CIPLA’s Q1FY27 EBITDA (INR 11.9bn; 16.7% OPM) missed our estimates by 6% on account of lower GMs. Management reiterate FY27E margin guidance at 18.5-20% with exclusion of gLanreotide recovery; alternate US manufacturing site being pursued owing to temporary supply disruptions. Our FY27E/28E EPS broadly remain unchanged. We expect Cipla US annual sales run-rate at USD 775/925mn in FY27/28E. Timely approval of key respiratory products, ramp up of gVentolin and normalization of gLanreotide by H2FY27 will be key. Cipla’s strong net cash position of +$1bn provides flexibility to pursue strategic M&A opportunities. At CMP, stock is trading 23x FY28E EPS. Given high FY25/26 base led by gRevlimid and gLanreotide; we see flat EPS in FY27E. We maintain our Accumulate rating with TP of INR 1,450/share, valuing at 24x on FY28E EPS. Timely launch of critical high-value products in the US in FY27E will be key.
