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Cipla FY26 profit drops to Rs 3,862 crore amid margin pressure
Pharma major posts Rs 28,163 crore revenue as Q4 profit softens.
MUMBAI: Pills kept moving off shelves, but Cipla’s profit pulse lost some rhythm this quarter as rising costs, tax swings and softer margins tempered an otherwise solid revenue run. Cipla reported a consolidated net profit of Rs 3,861.74 crore for the financial year ended March 31, 2026, marking a decline from Rs 5,269.20 crore in the previous year, as the pharmaceutical major navigated a tougher operating environment and the absence of last year’s elevated profitability.
Revenue from operations for FY26, however, climbed to Rs 28,162.59 crore from Rs 27,547.62 crore a year earlier, underlining continued demand across the company’s domestic and global businesses.
The Mumbai-headquartered drugmaker posted total income of Rs 29,044.60 crore for the year, compared with Rs 28,409.49 crore in FY25. Profit before tax stood at Rs 5,223.63 crore, down from Rs 6,820.81 crore in the previous fiscal.
The decline in annual profitability came amid higher operating costs, inventory movements and margin pressures across segments. Employee benefit expenses rose to Rs 5,366.33 crore from Rs 4,832.83 crore, while other expenses climbed to Rs 7,322.23 crore from Rs 6,657.90 crore.
For the March quarter, Cipla reported revenue from operations of Rs 6,541.20 crore, lower than the Rs 7,074.48 crore posted in the preceding December quarter and marginally below the Rs 6,729.69 crore reported a year earlier.
Quarterly net profit stood at Rs 542.51 crore, compared with Rs 1,214.14 crore in the corresponding quarter last year. Profit attributable to owners of the parent came in at Rs 554.64 crore for the quarter.
The company’s tax outgo for FY26 also remained significant at Rs 1,353.84 crore, although deferred tax adjustments offered some relief during the year.
Despite the softer earnings profile, Cipla continued to strengthen its balance sheet and global footprint. Total assets rose sharply to Rs 42,495.98 crore as of March 2026 from Rs 37,387.04 crore a year earlier, driven by higher investments, inventory and receivables.
Cash and cash equivalents stood at Rs 1,015.39 crore at the end of FY26, compared with Rs 542.65 crore last year, reflecting stronger liquidity despite heavy investing activity and dividend payouts.
The company generated operating cash flow of Rs 3,940.02 crore during the year, while investing activities absorbed Rs 2,326.13 crore, including capital expenditure and investment-related outflows.
Cipla’s earnings per share for FY26 stood at Rs 48.03 against Rs 65.29 in FY25.
The results come at a time when Indian pharmaceutical companies are balancing global pricing pressures, regulatory scrutiny and rising manufacturing costs while continuing to invest aggressively in specialty products, respiratory therapies and international markets.
Even with profits cooling from last year’s highs, Cipla’s numbers suggest the pharma giant is still firmly in fighting form just with a slightly slower heartbeat this time around.
