Homegrown pharma major Cipla Ltd reported a 39 per cent decline in consolidated net profit to Rs 785.55 crore in the first quarter ended June 2026, primarily due to a dip in sales in the North American market and higher expenses.
Cipla has posted a 11 per cent increase in net profit at Rs 67.20 crore (Rs 672 million) for the quarter ended June 30, 2003 as against Rs 60.63 crore (Rs 606.3 million) in Q1FY03.
Pharmaceutical major Cipla reported a 3 per cent year-on-year decline in March quarter revenue to Rs 6,541 crore, with net profit falling 55 per cent to Rs 554.6 crore, missing consensus estimates. Despite strong growth in India and Africa, a significant decline in North American sales impacted overall performance, with the company now focusing on new product launches and regulatory filings to drive future gains.
There are hopes of a turnaround in overall corporate earnings after six quarters of single digit growth.
A strong performance in the July-September quarter of 2023-24 (Q2FY24), an upward revision in the margin guidance and sustained momentum in US sales has helped the stock of pharmaceutical major Cipla gain about 2 per cent over the last two trading sessions. The brokerages have upgraded the earnings estimates for this financial year (FY24) by 6-9 per cent to factor in the improved margin guidance and sales in the US market. Led by the US market, which rose by 31 per cent, the company posted a 16 per cent growth in revenues.
An acute drug shortage in the US and stable pricing along with product launches are likely to boost revenues of India's pharmaceutical companies during the first quarter of this financial year, analysts said. Most brokerages estimate a top line growth of around 14-15 per cent, with earnings before interest, taxes, depreciation, and amortisation (Ebitda) growth of 24-30 per cent for Q1 of FY24. Hospitals are, however, likely to report lower occupancy rates, and diagnostics companies may witness an impact from delayed monsoon.
Net profits may dip 4.9% y-o-y, but the silver lining is that performance may be better than the preceding quarter
Currency played an important role in Q2, with US dollar, Japanese yen and euro appreciating vis-a-vis the Indian rupee, while the Brazilian real, South African rand and Russian ruble depreciating against rupee.
Gains were led by index heavyweights with Reliance Industries contributing the most.
The Asian markets are largely trading in the green, taking heart from a positive close on Wall Street.
Banking shares saw a renewed buying interest on the hopes of a rate-cut by the central bank post the easing of macro-economic data.
'The mismatch between valuations and fundamentals is startling,' warns Devangshu Datta
Asian markets were trading mixed with the Nikkei gaining after the US dollar strengthened against the yen.
The recovery was led by pharma majors led by Dr Reddy's Labs.
Markets extended gains for the fourth consecutive day tracking gains in banks, capital goods and oil and gas majors.
The benchmark BSE Sensex reclaimed the 28,000 mark, spurting by 409 points or 1.4% at 28,114 and Nifty settled above the 8,500 mark at 8,532, gains of 111 points.
Financial shares were among the top gainers with HDFC leading the gains.
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Markets ended lower following expiry of July F&O contracts and sales by foreign funds.
Private lenders HDFC Bank and ICICI Bank were the top gainers along with index heavyweights
n the broader market, both the BSE Midcap and Smallcap indices, were up 1.2% and 0.7% each.
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Infosys, Wipro and HUL among the top losers for the day.
Metal stocks also had a good session, with JSW Steel zooming by 7%, and Tata Steel and Nalco gaining about 3% each.
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BSE Mid-cap index ended lower by over 2.5% and BSE Small-cap index tumbled over 3%.
Sensex seems to be under pressure on weak cues.
Sensex ended up 11 points at 25,561 and the 50-share Nifty gained 16 points to end at 7,640.
Sensex lost 76 points to end at 25,589 while Nifty shed 23 points to end at 7,649.
Sensex ended at 26,272 up 125 points and Nifty ended at 7,831 up by 35 points.
The Nifty had hit its third successive record high of 7,922.70 today.
