Cipla (CIPLA IN) – Q2FY27 Result Update – Timely launches in US remain key – ACCUMULATE
Published on 28 Oct 2026
CIPLA’s Q2FY27 EBITDA (INR 13.8bn; 18.7% OPM) missed our estimates by 6%. Management reiterate FY27E margin guidance at 18.5-20% and exit run-rate of USD1bn US sales with exclusion of gLanreotide recovery. Timely approval of key respiratory and peptide products, ramp up of gVentolin will be key. Our FY28E/29E EPS broadly remain unchanged. We expect Cipla US annual sales run-rate at USD 770/965mn in FY27/28E. Cipla’s strong net cash position of +$1bn provides flexibility to pursue strategic M&A opportunities. At CMP, stock is trading 22x FY28E EPS. We maintain our Accumulate rating with TP of INR 1,450/share, valuing at 23x on Sept 2028E EPS. Timely launch of critical high-value products in the US in H2FY27E will be key.
