Source: Upstox
New Delhi, Leading drugmaker Cipla has provided a healthy update for the first quarter of FY 2025-26. For the quarter ended June 30, the company achieved a net profit of ₹1,298 crore, which was an increase of 10% over the ₹1,178 crore that was achieved in the corresponding quarter of FY 2024-25. The net profit was supported by a healthy performance in sales in India, Europe and Africa.
Total income from operations for the April to June 2023 quarter increased to ₹6,957 crore, from ₹6,694 crore in the previous year quarter.
India Business Drives Growth
The Company’s business in India remains a significant driver of its overall earnings. India sales grew 6% year on year to ₹3,070 crore compared to ₹2,898 crore in last year’s corresponding quarter. The Company said its One-India business (branded prescription drugs, trade generics and consumer health) was also up 6% year on year.
In a statement, Cipla’s Managing Director and Global CEO Umang Vohra explained, “Going ahead, the focus will be on growing our key markets, further building our flagship brands, investing in future pipeline as well as focusing on resolutions on the regulatory front.”
Worldwide Market Updates
Cipla’s international business performed mixed.
- In North America, sales dropped 7% year-on-year to ₹1,933 crore.
- Sales in Europe plus other emerging markets were up 11% to ₹861 crore from ₹779 crore last year.
- Sales in Africa had the most growth, up 14% to ₹871 crore (last year, ₹766 crore).
These results provide evidence that Cipla had mixed performance in the U.S. market while doing well in other international markets.
Cipla’s Financial Stability and Market Response
Cipla’s profit before tax (PBT) was ₹1,770 crore as compared to ₹1,611 crore last year. The company has cash reserves of ₹10,000 crore, indicating its healthy financial position.
After announcing its earnings, Cipla shares responded positively, increasing by 3.8% and traded at ₹1,543.80 on the BSE.
Prospects
Focusing on core markets, complementary brands, and continuing to invest in new products, Cipla intends to make strides in the next several quarters. The company is expected to perform well, particularly in India and emerging markets, which should be beneficial to its growth going forward.
that its key prescription medicines continued to grow faster than the overall market, and that the trade generics business is back on a steady growth path, directionally consistent with the consumer health brands, which are still the established market leaders.
