Cipla is working to ensure consistent drug supplies, even as freight and fuel costs, for example, increase due to a prolonged war in West Asia, a top official with the drugmaker said, after it announced its financial performance for the fourth quarter and year ended March 31, 2026.
The company’s net profit at ₹555 crore for the quarter under review was down 55 per cent from ₹1,222 crore in the same period last year. The company’s total income from operations stood at ₹6,541 crore for the period under review, down 2.8 per cent from ₹6,730 crore in the same period, last year.
Achin Gupta, Cipla’s Managing Director and Global Chief Executive Officer told businessline, the quarter was impacted by a combination of factors including an increase in its research and development expenditure, not having Lanreotide (affected by US regulatory action on a manufacturer in Greece), besides a smaller impact from the war.
As the war prolongs, he said, there is an increase across raw materials, across fuel, across solvents. “We try and maintain enough inventory of, all the input materials that we can, and then we will work with….whatever guidance we receive from the government. There is an active dialogue,” said Gupta, as pharmaceuticals is a critical industry.
“We are trying to ensure as much of supply security as possible, and absorbing some of the cost, but, ….at some point, there is a dialogue to be had with customers and with all the payers on the cost side as well,” said Gupta, who took charge as MD, last month.
US targets $ 1 billion
On the FY26 performance, he said in a statement, “we recorded our highest-ever yearly revenue of ₹28,163 crore, reflecting the strength of our core businesses despite certain markets facing near-term challenges. Our One-India business surpassed the ₹12,500 crore annual revenue milestone. Key therapies in branded prescription business delivered robust double-digit growth, trade generics business sustained the strong growth momentum and anchor brands of consumer health business maintained leadership position.”
Giving an overview of the business, he said, “The US business posted an annual revenue of $780 million supported by demand in our differentiated portfolio and a steady base business.” The management expects US to cross $ one billion by the end of FY27.
The future would see investments in R&D, especially for the developed markets, with a very strong pipeline across respiratory, peptides, and complex generics, biosimilars and other complex products, he said. Cipla’s net cash position stood at ₹10,526 crore, and its debt primarily included lease liabilities working capital requirements, it said. The company could look at acquisitions, he said, strategic opportunities in the US or Europe that would give the company a differentiated play.
On its performance in other markets, he said, “in One Africa, we recorded a healthy annual growth of 7 per cent y-o-y in dollar terms, driven by firm performance across key markets. Emerging Markets and Europe crossed the $400 million annualised revenue threshold on the back of deep market focus strategy.”