What's in store for CIPLA ?
Cipla's Q1FY26 results are expected to show modest growth with PAT rising 2-8% to ₹1,060-1,250 crores and revenue up 2-10%, reflecting cautious domestic performance and flat US generics sales.
The positives are there. US generics sales have stabilized while domestic branded formulations in chronic therapies like respiratory and cardiac are driving 10% growth, helping offset lower trade-generics contribution.
Margin headwinds remain a concern though. Elevated R&D spending and costs from domestic trade-gen restructuring may cap EBITDA at 23-24% levels.
The stock trades at 22x P/E with 14% forward ROE, but broker sentiment is mixed—InCred recently trimmed exposure citing muted outlook.
