Cipla’s US recovery, biosimilar pipeline key to future growth prospects

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India continues to remain the company's biggest growth engine, outperforming the overall domestic market.

India continues to remain the company's biggest growth engine, outperforming the overall domestic market. It delivered double-digit growth supported by respiratory, cardiac, anti-diabetes and dermatology therapies. With the rising share of chronic therapies and new product launches across segments, Cipla expects to sustain market share gains in the domestic business.

While operating margin before depreciation and amortisation (Ebitda margin) declined 630 basis points year-on-year to 18.7%, it expanded 200 basis points sequentially amid tracion in the domestic business. It is expected to improve further in the second half of FY27, supported by respiratory product launches and a favourable product mix. It has retained the FY27 Ebitda margin guidance of 18.5%-20%.

Backed by a net cash position of ₹9,823 crore, Cipla is actively evaluating inorganic opportunities, particularly in North America and Europe, with a focus on acquiring complex and differentiated products that can strengthen its specialty portfolio.

Cipla's stock has lost over 4% over the past three months, underperforming the 2.5% drop in the BSE Healthcare index. Despite weakness, the stock's trailing price-earnings (P/E) multiple at around 38 is above its five-year average multiple of 27. The stock is likely to remain range-bound until a clear sign of recovery in revenue and profits emerges.