$CIPLA

Cipla has reaffirmed its FY27 guidance despite a muted first-quarter performance, with Managing Director and Global CEO Achin Gupta expressing confidence that a robust product pipeline and the scaling up of recently launched products will drive growth over the coming quarters. The company continues to target an EBITDA margin of 18.5–20 percent and expects its North American business to achieve an annualised revenue run-rate of $1 billion by the end of FY27. The optimism comes even as Cipla reported a subdued quarter in its key North American market. Revenue from the region declined 21 percent year-on-year to Rs 1,532 crore in the June quarter. In dollar terms, quarterly sales stood at $162 million, impacted by the loss of exclusivity for lenalidomide and continued supply disruptions for lanreotide. North American business is expected to strengthen progressively through the rest of the year as recently launched products gain traction and additional product launches contribute to growth. Cipla's immediate focus remains on funding organic expansion. With cash and investments now exceeding Rs 10,000 crore, the company has significantly increased capital expenditure over the past two years and expects this investment cycle to continue for another one to two years. Alongside capacity expansion, Cipla plans to deploy additional capital towards product development and further strengthening its US pipeline, reinforcing its long-term growth strategy.