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Cipla Ltd Q2 FY26: Revenue Hits Record Level, but Profit Growth Remains Modest
Health, Markets, Result Updates - November 27, 2025

Cipla Ltd Q2 FY26: Revenue Hits Record Level, but Profit Growth Remains Modest

Cipla Ltd Q2 FY26: Revenue Hits Record Level, but Profit Growth Remains Modest

Cipla posted its highest-ever quarterly revenue at ₹7,589 crore in Q2 FY26, a +7.6% YoY increase. Growth was broad-based across India, Africa and Emerging Markets. However, EBITDA remained almost flat and margins softened. Profit also grew only +3.7% YoY to ₹1,351 crore. The US business remained steady but not strong, while API revenue declined. Overall, Cipla is growing steadily in scale, but profitability is expanding at a slower pace.

*Key Highlights*
* Revenue from operations: ₹7,589 crore (+7.6% YoY)
* EBITDA: ₹1,895 crore (+0.5% YoY)
* EBITDA margin: 25.0% (down from 26.7% last year)
* PAT: ₹1,351 crore (+3.7% YoY)
* India business: ₹3,146 crore (+7% YoY)
* North America: US$233 million (~₹2,039 crore), growth ~+3% YoY in INR terms
* Africa (One Africa): ₹1,178 crore (+10% YoY)
* Emerging Markets + Europe: ₹967 crore (+20% YoY)
* API business: ₹148 crore (down by 7% YoY)
* Total equity: ₹33,025 crore
* Total debt: ₹467 crore (very low leverage)

*Revenue & Profit Analysis*
Cipla’s +7.6% YoY revenue growth highlights strong demand and a resilient portfolio. Domestic business grew +7% YoY, while Emerging Markets posted a robust +20% YoY expansion, helping offset the slower North America performance.
However, EBITDA grew only +0.5% YoY, and the margin fell to 25%, indicating cost pressures and unfavourable product mix. PAT growth of +3.7% YoY is modest compared with the scale of revenue, showing that profitability is not keeping pace with top-line expansion.
This positions Cipla as a company that is growing in size but needs sharper margin improvement to drive stronger earnings.

*Segment & Operational Performance*
1. India (One India Business)
* Revenue: ₹3,146 crore (+7% YoY)
* Chronic care contribution rose to 61.8%
* Cipla continues to strengthen its position in respiratory and chronic therapies.
2. North America
* Revenue: US$233 million (~₹2,039 crore), +3% YoY in INR
* Growth driven by the launch of biosimilar Filgrastim and approval for generic Glucagon.
* Overall growth remains muted due to competitive pricing pressure.
3. One Africa
* Revenue: ₹1,178 crore (+10% YoY)
* South Africa private market outperformed the broader market.
* The region continues to be a consistent contributor.
4. Emerging Markets & Europe
* Revenue: ₹967 crore (+20% YoY)
* This was one of the strongest segments, driven by both direct markets and strong institutional business.
5. API Business
* Revenue: ₹148 crore ( down by 7% YoY)
* This remains a weak spot and indicates softness in upstream operations.

*Risk & Outlook Considerations*
Uncertainties:
* Margin pressure: EBITDA margin dropped from 26.7% to 25%
* US business competitive pressure remains a concern despite new approvals
* API decline pulls down overall performance
* Leadership transition (new CEO in April 2026) may bring temporary uncertainty
Positives:
* Strong respiratory pipeline
* Four major respiratory launches planned by 2026
* Emerging markets momentum remains strong
* Healthy balance sheet with extremely low debt

*Conclusion*
Cipla’s Q2 FY26 performance shows solid revenue growth but mild profit expansion. Strength in India, Africa and Emerging Markets is encouraging, but margin squeeze and a slow-moving US business limit earnings momentum. The next leg of growth will depend on improving the US pipeline, restoring API performance, expanding margins through cost optimisation and successfully executing key respiratory launches. Cipla remains a stable, diversified, steady-growth pharma company, but for it to deliver stronger shareholder returns, margin and profit acceleration must improve in the coming quarters.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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DLF Limited Q2 FY26: Bookings Soar, But Profit Faces Short-Term Drag

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Dr Reddy’s Q2 FY26: Revenue Up 9.8% but Margin Under Pressure
Business, Markets, Result Updates - November 24, 2025

Dr Reddy’s Q2 FY26: Revenue Up 9.8% but Margin Under Pressure

Dr Reddy’s Q2 FY26: Revenue Up 9.8% but Margin Under Pressure

Dr Reddy’s delivered healthy top-line growth in Q2 FY26, consolidated revenue of ₹88,051 Mn (+9.8% YoY, +3% QoQ), but profitability shows strain: gross margin fell to 54.7% and PBT margin slipped, reflecting product mix shifts, one-offs and pricing pressure in key markets.

*Key numbers*
* Revenue (consolidated): ₹88,051 Mn (Q2 FY26), +9.8% YoY and +3% QoQ
* EBITDA: ₹23,511 Mn, 26.7% of revenues
* Profit before tax (PBT): ₹18,350 Mn, PBT margin 20.8% (down ~310 bps YoY)
* Profit after tax (PAT) attributable to equity holders: ₹14,372 Mn, +14% YoY and +1% QoQ
* Gross margin: 54.7% (Q2 FY25: 59.6%), down ~492 bps YoY and 223 bps QoQ.
* SG&A: ₹26,436 Mn, 30% of revenues, +15% YoY (company notes one-offs and NRT investments)
* R&D: ₹6,202 Mn, 7% of revenues (down YoY)
* Impairment (non-current assets, net): ₹662 Mn (noted as related to discontinued pipeline/ product issues)
* Global Generics: ₹78,498 Mn (+10% YoY): broken down as North America ₹32,408 Mn (–13% YoY), Europe ₹13,762 Mn (+138% YoY, driven by NRT acquisition/ excluding NRT growth is 17% YoY), India ₹15,780 Mn (+13% YoY), Emerging Markets ₹16,548 Mn (+14% YoY)

*What accelerated the revenue*
Growth came from a broad mix: branded markets (India, Emerging Markets) and the recently acquired Nicotine Replacement Therapy (NRT) business (a strong contributor to Europe growth) offsetting weakness in certain U.S. generics like Lenalidomide. In short, new product launches and M&A (NRT) and volume growth in emerging markets powered top-line expansion.

*Rationale behind margin compression*
1. Product mix/ pricing headwinds in North America: Lower Lenalidomide sales and price erosion in U.S. generics reduced gross margin contribution.
2. One-offs and provisions: The company recorded inventory provisions and an impairment related to discontinued pipeline products (₹662 Mn) and mentioned a potential VAT liability (~₹700 Mn) that lifted SG&A. These items dented margins this quarter.
3. PSAI operating leverage: PSAI (Pharmaceutical Services & Active Ingredients: APIs & services) margins are lower than Global Generics and a larger share or weaker performance in PSAI pulls consolidated gross margin down.
Net result: gross margin fell to 54.7%, and while EBITDA remains at 26.7%, PBT and effective margins are lower than last year. The firm emphasises these are partly transient and linked to mix and one-offs.

*Mixed outlook for the U.S. and Europe*
* United States: the U.S. generics franchise is still material (North America ~₹32,408 Mn this quarter) but faces pricing erosion and product-specific declines (Lenalidomide). Management flagged that NA pressures continue to be the primary margin headwind.
* Europe: Headline growth in Europe looks strong (₹13,762 Mn, +138% YoY) but a large part is acquisition-driven (NRT). Forex and product launches helped QoQ gains. Europe is a growth story for Dr Reddy’s, but sustainability depends on integration of the NRT asset and continued new product wins.

*Conclusion*
Dr Reddy’s posted solid revenue growth but faced a clear margin dip due to U.S. pricing pressure, product mix, and one-offs. The core business remains strong and diversified, but near-term profitability will depend on stabilising the U.S. portfolio and successfully scaling the Europe NRT business. Medium-term margin recovery is possible if execution stays on track.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Apollo Hospitals Q2 FY26: Double-Digit Growth Across Healthcare, Digital & Diagnostics as Core Businesses Expand

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Gujarat Gas Q2 FY26: Revenue Flat at ~₹3,980 Crore, PAT Down ~9%
Business, Market News, Result Updates - November 18, 2025

Gujarat Gas Q2 FY26: Revenue Flat at ~₹3,980 Crore, PAT Down ~9%

Gujarat Gas Q2 FY26: Revenue Flat at ~₹3,980 Crore, PAT Down ~9%

Gujarat Gas reported a largely stable quarter on top-line with revenue of ~₹3,979 crore, but profitability slipped — EBITDA at ₹520 crore (vs ₹553 crore) and PAT at ₹281 crore (vs ₹307 crore) for Q2 FY26.

*Headline numbers (company reported — Q2 FY26 vs Q2 FY25)*
* Revenue from operations: ~₹3,979 crore (Q2 FY26) vs ~₹3,949 crore (Q2 FY25).
* EBITDA: ₹520 crore (Q2 FY26) vs ₹553 crore (Q2 FY25).
* PAT (Profit after tax): ₹281 crore (Q2 FY26) vs ₹307 crore (Q2 FY25).

*Operational highlights — volumes & network*
* CNG volume: 3.32 mmscmd in Q2 FY26, up 13% YoY (vs 2.93 mmscmd in Q2 FY25).
* PNG (Domestic): 0.83 mmscmd in Q2 FY26 — +10% YoY.
* PNG (Commercial): 0.16 mmscmd — +7% YoY.
* Total distributed gas: ~8.65 mmscmd in Q2 FY26

*Network & customer metrics*
* CNG stations: 834 operational stations (company added 4 stations in the quarter).
* New domestic customers added in Q2: 42,400+.
* Households served: More than 23.44 lakh households.
* Pipeline network: 43,900+ km of steel pipeline (cumulative).

*Business initiatives mentioned by the company*
* FDODO (Franchise/ dealer) push: Gujarat Gas has signed 74 FDODO agreements to accelerate growth; one FDODO station became operational in Jamnagar during the quarter.
* Corporate action: Shareholders approved the Composite Scheme of Amalgamation and Arrangement at the meeting held on 17th October 2025; the company has filed the Chairman’s Report and confirmation petition with the Ministry of Corporate Affairs.

*What the numbers tell us*
1. Volume growth is healthy, especially CNG: CNG volumes grew 13% YoY to 3.32 mmscmd, showing strong consumer and transport demand — this is the positive operational story.
2. Top line is steady, but margins compressed: Revenue was almost flat (≈₹3,979 crore), yet EBITDA and PAT declined (EBITDA ₹520 crore, PAT ₹281 crore), indicating margin pressure or higher costs relative to last year.
3. Retail expansion continues: Network additions (4 new CNG stations) and 42,400+ new domestic connections in a quarter show steady on-ground growth and customer acquisition.
4. FDODO rollout is a focus: Signing 74 FDODO agreements and commissioning a station signals management’s push to scale via franchise models.

*Risks and near-term things to watch*
* Margin drivers: If fuel/ gas costs, spot LNG prices, or allocations change, EBITDA and PAT can move sharply — the quarter already showed profit decline despite volume growth.
* Execution of FDODO roll-out: Success of the franchise model will affect future station additions and cost structure.
* Regulatory/ allocation changes: Any government allocation changes for domestic/ priority segments could affect supply mix and economics.

*Conclusion*
Gujarat Gas delivered stable revenue (~₹3,979 crore) and good volume growth (CNG +13%), but profitability came under pressure with EBITDA at ₹520 crore and PAT at ₹281 crore. The company is expanding its network and pushing an FDODO strategy, but margin sustainability remains the key monitorable for the next quarters.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Tata Motors Q2 FY26: Sales Momentum in CVs (94,681 units, +12%), Revenue Growth Modest, Profitability Under Pressure

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