Cipla (CIPLA IN) – Q3FY26 Result Update – Muted US sales – Accumulate
Published on 27 Jan 2026
CIPLA’s Q3FY26 EBITDA (Rs 12.5bn; 17.7% OPM) missed our estimates sharply on account of lower US revenues. Mgmt further revised its FY26E margin guidance downward owing to temporary supply disruptions in Lanreotide. Our FY27E/28E EPS stands cut by 10% as we factor in lower US sales. We expect Cipla US annual sales run-rate at $800/950mn in FY27/28E. Timely key respiratory approvals and normalization of Lanreotide by Q2FY27 will be key. Cipla’s strong net cash position of +$1.5bn provides flexibility to pursue strategic M&A opportunities. At CMP, stock is trading 23x FY27E EPS. Given high FY25 base led by gRevlimid; we see flat EPS over FY25-28E. We maintain our Accumulate rating with revised TP of Rs1,440/share, valuing at 23x on Dec 2027E EPS. Timely launch of critical high-value products in the US in FY27E will be key.
