Cipla reports 35% drop in net profit in the second quarter due to weakness in US business

The pharmaceutical giant Cipla, based in Mumbai, recorded a 35% year-on-year decline in consolidated net profit for the September quarter (Q2) of the fiscal year 2026-27 (FY27).

This decrease was attributed to a slowdown in the Active Pharmaceutical Ingredients (API) segments and the business in the United States (US). The company reported a Profit After Tax (PAT) of ₹878 crore, which is lower than the ₹1,351 crore recorded in the same quarter last year.

Operating revenue also decreased by 2.4% year-on-year, amounting to ₹7,404 crore compared to ₹7,589 crore in Q2 FY26.

Revenue Details and Forecasts

According to regulatory filings published by the company, the North American business generated $172 million in revenue for the reporting quarter (equivalent to ₹1,643 crore), which is 19% less than the $233 million (approximately ₹2,039 crore) achieved in Q2 FY26.

During the investor call, Managing Director (MD) and Global CEO Achin Gupta noted that Q2 FY26 revenue improved by $10 million compared to the previous period, and the North American business generated $162 million in Q1 FY27.

Gupta expressed confidence in achieving an annual revenue run rate of $1 billion in its North American (US) business by the end of FY27. He added that the company intends to build on this momentum throughout the year through disciplined commercialization and future developments.

Growth Strategy and Partnerships

The company relies on the commercialization of Ventrolin and the generic Advair Diskus. Furthermore, Cipla plans to launch three new products in the US market, including two respiratory and one peptide molecule, pending approvals.

In the investor presentation, the company announced an exclusive partnership with China's Qilu Pharmaceutical for the commercialization of the biosimilar Keytruda, strengthening its position in complex respiratory therapies and oncology biosimilars.

Cipla's priority is to grow its organic portfolio in the US, aiming to file applications for 45–50 products over the next three years. The company is also considering strengthening its R&D capabilities in the US. Gupta mentioned that four biosimilar candidates are under development targeting global markets.

Regional Results

On the other hand, the company's business in India showed a 12% year-on-year growth for the September quarter, reaching ₹3,516 crore compared to ₹3,146 crore the previous year. Gupta attributed this growth to the strong development of the branded prescription business, which saw a 15% increase in chronic segments such as cardiology, urology, respiratory, and anti-diabetic therapies.

The One Africa business generated ₹1,171 crore in revenue, a 1% year-on-year decrease. Within this segment, South Africa's revenue declined by 3% to ₹872 crore, although Cipla noted that the country's private sector grew 1.3 times faster than the market.

Revenues from emerging markets and Europe remained stable at ₹967 crore despite geopolitical uncertainty. Meanwhile, revenue from APIs and other areas sharply dropped by 59%, totaling only ₹107 crore.

These results were announced during the trading session. Cipla shares closed on the BSE 0.22% lower, at ₹1,350 per share on Tuesday.

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HPCL's second-quarter profit fell by 9% to 3,483 crore rupees due to rising expenses and taxes

Hindustan Petroleum Corp (HPCL) reported a 9% drop in net profit for the second quarter, amounting to 3,483 crore rupees. This decline was attributed to increased tax expenses and a sharp rise in crude oil prices, which pressured the fuel company's margins despite a 26.2% increase in product sales to 1.39 trillion rupees.

The Indian state-owned company released its earnings report, showing that its autonomous net profit for the quarter ending September 30 decreased to 3,483 crore rupees (US$367.34 million) compared to 3,830 crore rupees the previous year.

Average global Brent crude oil prices rose nearly 40% year-on-year during the second quarter. This increase was driven by the ongoing war in Iran and the conflict between Russia and Ukraine. The higher cost of fuel supplies exceeded revenue from its sale, negatively impacting the marketing margins of oil marketing companies (OMC).

Analysts at Elara Capital predicted that the retail diesel margin for OMC would be negative 24 rupees per liter, whereas it was 5 rupees per liter in the same quarter last year. The gasoline margin was estimated at negative 2 rupees per liter compared to 9 rupees last year.

HPCL's total expenses increased by 25.9% to 1.33 trillion rupees, while the cost of raw materials consumed jumped by 24.3%. Furthermore, the company's total tax expenses more than doubled, reaching 3,285 crore rupees.

Nevertheless, the company's average gross refining margin for the April-September period improved to $27.89 per barrel compared to $5.95 per barrel the previous year. This improvement was supported by profits from raw material inventories, as the market price of oil exceeded the price at which the company acquired its stocks.

The 26.2% growth in product sales to 1.39 trillion rupees was supported by a compensation of 3,960 crore rupees from the Government of India for foregone revenues from domestic liquefied petroleum gas (LPG) between April and September. HPCL became the first among its competitors, such as BPCL and Indian Oil, to publish results for the September quarter.

business-standard.comOctober 19, 19:37

Sobha's profit fell by 54.5% in the second quarter despite record sales in the first half of the year

The Bangalore-based developer, Sobha Limited, reported a significant drop in net consolidated profit by 54.5% in the September quarter. The profit amounted to ₹32.96 crore, according to results presented by the company on the Bombay Stock Exchange on Monday.

Concurrently, revenue from operations decreased by 31.3% year-on-year, reaching ₹967.06 crore compared to ₹1,407.66 crore the previous year. Looking at sequential changes, both profit after tax and revenue from operations decreased by 35.2% and 24.3%, respectively.

The company's EBITDA in Q2FY27 was ₹68.73 crore, which is 32.4% less than ₹101.64 crore in the same period last year. Nevertheless, the developer demonstrated strong sales performance, noting a growth of 47.2% in the first half of the financial year, and collections increased by 4.8% over the same period.

Jagadish Nangneneni, Managing Director of Sobha Limited, commented on the results, stating that the performance in the first half of FY27, marked by record sales, reflects consistent customer trust, the strength of the SOBHA brand, and the successful execution of the business strategy. He added that the second half of the year will be built on this momentum, supported by planned project launches, a strong development portfolio, and sustained demand for quality housing.

In Q2FY27, Sobha reported an average realization price of ₹15,522 per square foot. The company also specified that in the first half of FY27, projects totaling approximately 7.92 million square feet (msf) were launched, with an estimated sales potential of nearly ₹11,200 crore.

Nangneneni emphasized that the company's focus will remain on improving execution efficiency, maintaining financial discipline, and utilizing a unique reverse integration model to ensure superior quality and reliability. He expressed confidence in the company's ability to capitalize on emerging opportunities and create long-term value for customers and stakeholders.