Cipla (CIPLA IN) – Q4FY26 Result Update – Weak US revenues, timely launches will be key – Accumulate
Published on 14 May 2026
CIPLA’s Q4FY26 EBITDA (INR 9.5bn; 15% OPM) missed our estimates by 7% on account of lower US revenues. Management guided FY27E margin at 18.5-20% with exclusion of Lanreotide recovery; alternate US manufacturing site being pursued owing to temporary supply disruptions. Our FY27E/28E EPS stands cut by 5-10% as we factor in lower margins. We expect Cipla US annual sales run-rate at USD 800/950mn in FY27/28E. Timely key respiratory approvals and normalization of Lanreotide by H2FY27 will be key. Cipla’s strong net cash position of +$1.2bn provides flexibility to pursue strategic M&A opportunities. At CMP, stock is trading 22x FY28E EPS. Given high FY25/26 base led by gRevlimid and gLanreotide; we see flat EPS in FY27. We maintain our Accumulate rating with revised TP of INR 1,400/share, valuing at 23x on FY28E EPS. Timely launch of critical high-value products in the US in FY27E will be key.
