CIPLA
Large CapCipla Limited
Pharma
Cipla is an Indian pharmaceutical company with a global presence, focusing on branded prescriptions, trade generics, and consumer health in India, North America, Africa, and Emerging Markets. It develops and manufactures generic drugs, APIs, and complex generics, with a strong emphasis on respiratory, urology, anti-diabetes, and cardiac therapies.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100Rev -3% YoY · PAT -55% YoY · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6,541 Cr | -2.8% | -7.5% |
| EBITDA | ₹955 Cr | -37.9% | -23.9% |
| Operating margin | 15.0% | -800 bps | -300 bps |
| PAT | ₹543 Cr | -55.3% | -19.4% |
| PAT margin | 8.3% | -974 bps | -123 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Cipla reported highest-ever yearly revenue in FY26 despite headwinds, but Q4FY26 and full-year FY26 EBITDA and PAT declined significantly YoY due to higher expenses and lower margins. North America crossed $400 Mn, and India delivered robust double-digit growth across segments.
While Cipla achieved its highest-ever yearly revenue and showed strong performance in India and North America (crossing $400 Mn), the substantial YoY decline in EBITDA, PAT, and ROIC for both Q4 and FY26 raises concerns. The company attributes this to "multiple headwinds" but specific details on their impact on profitability are limited. The R&D spend remains high, and the pipeline is robust, but conversion to profitable growth needs close monitoring.
Revenue by Geography and Segment (FY26 Consolidated)
Latest issuer-disclosed distribution across 6 reported categories.
India Branded Prescription
Cipla maintained #2 rank in overall chronic with improved chronic mix to 60.2%. Foracort surpassed the INR 1,000 Cr milestone in IPM.
North America Generics
Albuterol ranked No. 1 with total market share at 19.6%. Received approval for the first AB-rated gVentolin with CGT, with launch expected in coming months.
Strategic Alliances & Acquisitions
Secured rights from Eli Lilly to distribute and promote Yurpeak® in India. Strengthened Neuro/CNS via acquisition of 3 brands.
Pipeline of Complex Generics
North America Respiratory pipeline has 5 assets filed (4 expected commercialization in FY27). 8 Peptides & Complex Generics assets filed (select launches expected in FY27-FY28).
Strong India Market Position
Cipla maintained #2 rank in overall chronic with improved chronic mix to 60.2%.
North America Product Approvals
Received regulatory approval for the first AB-rated gVentolin with CGT.
ESG Achievements
Achieved 83% reduction in absolute Scope 1 and Scope 2 emissions from baseline year of FY 2019-20.
Profitability Pressure
Company reported highest-ever yearly revenue 'Despite Multiple Headwinds', leading to significant YoY decline in EBITDA and PAT margins.
Regulatory Approvals
Ability to obtain regulatory approvals for new products and markets.
Foreign Exchange Rates
Fluctuation in foreign exchange rates can impact international operations and exports.
Market Risks
Exposure to various market risks, including competition and pricing pressures.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Q4 results provide recent operational performance, while full-year (FY26) results offer a comprehensive view of annual trends and strategic execution. Both are crucial to assess the company's trajectory, especially given the mixed performance (revenue growth vs. profit decline).
Domestic Formulations Growth
One India business achieved robust double-digit growth across three segments (Branded Prescription, Trade Generics, Consumer Health) in FY26.
US/Export Growth
North America business crossed $400 Mn benchmark in FY26. North America Albuterol ranked No. 1 with total market share at 19.6%.
Launch Pipeline
North America Respiratory pipeline: 5 assets filed (4 expected commercialization in FY27), 4 assets to be filed in next 24 months. 8 Peptides & Complex Generics assets filed (select launches expected in FY27-FY28).
Approvals
Received regulatory approval for the first AB-rated gVentolin with CGT for North America. 181 Approved ANDAs & NDAs, 49 Tentatively Approved, 55 Under Approval (as on 31st March 2026).
Fueling Growth Investments
Assembling Resources to Fuel Growth Investments; $ 1 Bn+ Net Cash Position in our Balance Sheet.
North America Launch
Launch of first AB-rated gVentolin with CGT is expected in coming months.
ESG Commitment
Cipla (EU) limited has committed to achieve net zero by 2050.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin | 21.0% (FY26) | Stabilization and improvement from current levels, given the significant YoY decline. |
| North America Launches | gVentolin approval received | Successful commercialization and revenue contribution from gVentolin and other pipeline assets in FY27-FY28. |
| R&D Effectiveness | 7.0% of revenue (FY26) | Conversion of R&D investments into profitable new product launches and sustained market share gains. |
| One India Growth | Robust double-digit growth | Continued market share gains and sustained double-digit growth across key therapies and segments. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
48NeutralSMA20 -1.4% / mo
Technical chart
CIPLAdaily · 6M-7.7%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 51. Wait for confirmation.
- SMA20 rising (~7.5% over last month) — short-term momentum positive.
- RSI(14) at 51 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 11% off 52W high · 18% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 32.4%.
- Cash flow contributes 7/10 to the score.
Main drags
- Quality is weaker at 2/20; verify the latest quarterly trend.
- Valuation is weaker at 10/30; verify the latest quarterly trend.
- Growth is weaker at 11/25; verify the latest quarterly trend.
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 70th percentile of the scored universe and 61st percentile within Pharma. Main check: financial discipline is weak at 50/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 2 latest quarters had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Pharma: 61st pctile, median 70 · Large: 47th pctile, median 74
193 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1.5%.
- ▸11 years of positive FCF.
- ▸Debt/equity is 0.02.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE trend is -4.8%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 29.50
- P/B
- 3.26
- EV/EBITDA
- 15.90
- Market Cap
- 112169.00Cr
Profitability
- ROE
- 11.60%
- ROCE
- 15.50%
- ROA
- 9.12%
- Dividend Y
- 0.94%
Growth (CAGR)
- Revenue 5Y
- 8.00%
- EPS 5Y
- 10.00%
- Revenue 3Y
- 7.00%
- EPS 3Y
- 10.00%
Balance Sheet
- Debt/Equity
- 0.02
- Interest Coverage
- 108.94×
- Altman Z
- 8.55
- Book Value
- 426.00
Cash Flow
- FCF Yield
- 1.52%
- FCF Positive Y
- 11/5
- OCF
- 3940.00 Cr
- EPS TTM
- 48.02
Shareholding
- Promoter Hold
- 29.22%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 44%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.