$CIPLA

Cipla Ltd. shares gained nearly 2.5 percent after the company reported a strong sequential performance for the first quarter of FY27. Consolidated net profit rose 42 percent quarter on quarter to Rs 789 crore, while revenue from operations increased 9 percent sequentially to Rs 7,119 crore. EBITDA climbed 25 percent QoQ to Rs 1,192 crore, with the EBITDA margin improving to 16.74 percent from 14.6 percent in the previous quarter, reflecting better operational efficiency. Following the results, Motilal Oswal Financial Services maintained its Neutral rating on the stock with a target price of Rs 1,420. The brokerage noted that Cipla's earnings were ahead of expectations due to higher other income, while highlighting continued strength in the domestic business, driven by robust demand across chronic therapies, trade generics, and consumer health. It also raised its FY27 and FY28 earnings estimates by 4 percent and 2 percent, respectively. Looking ahead, the management reiterated its FY27 EBITDA margin guidance of 18.5 percent to 20 percent and remains confident of achieving a USD 1 billion annualised US sales run rate by the end of FY27. Growth is expected to be supported by upcoming product launches, including generic respiratory therapies and peptide products, while a recovery in the North American business is anticipated in the second half of the financial year.