IP
IndiaPulse

Cipla Limited (CIPLA)

Large Cap

Pharma stocks · Large cap · NSE

Cipla Limited is an Indian pharmaceutical company engaged in developing, manufacturing, and selling generic drugs, APIs, and consumer health products. It operates across key markets including India, North America, Africa, and Emerging Markets & Europe.

₹1,385
-9.70 · -0.70%
Quote04 Sept, 03:58 pm IST
Fundamentals05 Sept 2026 · screener
Score05 Sept, 10:20 pm IST · v4.3-runtime-valuation
Tags02 May 2026
Coverage14/14 · 100%
Valuation2026-07-20 · Rf 6.8% · Pharma P/E 34.6 (n=184)
Data confidence
Fresh enough for analysis
Investor decision lenses

One read, four checks

75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.

Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.

Suggested next step
Check latest quarters
Result consistency is weak; verify whether the thesis is improving or deteriorating.
U-Score
WATCHLIST
37

Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.

Trust
Healthy Trust
70

low confidence · 0/0 claims checked

Technical
Neutral
45

Timing lens: price trend and sector relative strength.

Result consistency
weak
39

Rolling lens: recent quarterly delivery, not the latest single-result score.

Latest result

Quarter ended 30 Jun 2026

Bad · 0/100

PAT -39% YoY · margin compression · Rev +2% YoY · +9% QoQ

Filed 23 Jul 2026
Open results browser →
MetricThis quarterYoYQoQ
Revenue₹7,119 Cr+2.3%+8.8%
EBITDA₹1,192 Cr-33.0%+24.8%
Operating margin17.0%-900 bps+200 bps
PAT₹786 Cr-39.2%+44.8%
PAT margin11.0%-753 bps+274 bps

NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.

Business & thesis

Growth engines, tailwinds/headwinds, and risk radar from management commentary

Business and thesis

Where growth can come from, and what can break the case

Thesis under stressReviewed 2026-07-24T03:40:46.095Z
Management commentary snapshot

Cipla reported its highest-ever Q1 revenue of INR 7,119 Cr, up 2.3% YoY, driven by One India and North America. However, EBITDA declined 33% YoY to INR 1,192 Cr, and PAT fell 39.1% YoY to INR 789 Cr, with margins contracting significantly.

While revenue growth was positive, the substantial decline in EBITDA and PAT, coupled with significant margin contraction, raises concerns about profitability and operational efficiency. The strong performance in One India and North America is offset by margin pressures.

Current business mix

Q1FY27 Consolidated Revenue Break-up

Latest issuer-disclosed distribution across 5 reported categories.

Businessmix
One India48.0%
North America22.0%
One Africa14.0%
Emerging markets and Europe14.0%
API and Others2.0%
Growth engines

One India Branded Prescription

Maintained #2 rank in overall chronic with chronic mix improved to 60.4%. Double-digit growth in Respiratory, Urology, Anti-diabetes and Cardiac therapies.

North America Launches

Launched gVentolin in the U.S. market during the quarter, with initial shipments executed.

South Africa Private Business

Private business growing 1.2X faster than the market, with revenue of ZAR 906 Mn for Q1FY27.

Consumer Health

Anchor and transitioned brands continuing to grow bigger. Nicotex, Omnigel and Cipladine maintained leadership positions.

Tailwinds

Chronic Therapy Growth (India)

Double-digit growth in chronic therapies like Respiratory, Urology, Anti-diabetes and Cardiac in One India.

South Africa Private Market Outperformance

South Africa private business growing 1.2X faster than the market.

Headwinds

EBITDA Margin Contraction

EBITDA % declined to 16.7% in Q1FY27 from 25.6% in Q1FY26.

PAT Margin Contraction

PAT % declined to 11.1% in Q1FY27 from 18.7% in Q1FY26.

Increased Material Cost

Material cost increased to INR 2,667 Cr in Q1FY27 from INR 2,171 Cr in Q1FY26.

Management accountability

What management said, and what results must prove

Management accountability

What management said, and what results must prove

Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.

Analyst reading lens
Compare YOY

The financial performance tables explicitly compare Q1FY27 with Q1FY26, indicating a year-over-year comparison is most relevant for assessing seasonal quarterly performance.

Sector KPIs management disclosed

Domestic Formulations Revenue (One India)

Highest-ever quarterly revenue of INR 3,452 Cr in Q1FY27.

One India Market Growth

Delivered market growth of 15.4%, 183 bps higher than IPM in Q1FY27.

North America Revenue Growth

1% YoY growth in Q1FY27.

One Africa Revenue Growth

5% YoY growth in Q1FY27.

Management forward view

North America gVentolin Supply Ramp-up

Supply ramp-up planned over the coming quarters for gVentolin in the U.S. market.

ESG Progress

Achieved 2.6x water positivity for India manufacturing in FY26. Cipla Medpro Manufacturing (South Africa) achieved Net Zero Waste Certification.

Thesis monitor

Numbers and claims to verify in the next filings

CheckpointCurrent evidenceWhat to verify next
EBITDA Margin16.7% (Q1FY27)Stabilization and recovery of EBITDA margin in subsequent quarters.
North America gVentolin Ramp-upInitial shipments executedThe pace and scale of gVentolin supply ramp-up and market share capture.
One India Growth15.4% market growth, 183 bps higher than IPMSustained outperformance against IPM and chronic therapy growth.
R&D Spend as % of Revenue6.8% (Q1FY27)R&D investment efficiency and progression of the pipeline.

Verification checkpoints are IndiaPulse research interpretation, not investment advice.

Technical timing lens

Trend score and candlestick chart

45Neutral

MACD − · sector +2.2pp vs Nifty (3M)

Stock trend: 35
Sector RS: 60
Sector 3M: +0.7% vs Nifty -1.5%

Technical chart

CIPLAdaily · 1Y · AUTO+4.4%
Latest close ₹1385.00 on 2026-09-04
Bar
-0.9%
RSI
36
MACD hist
-4.89
52W pos
43%
2026-09-04O ₹1397.70H ₹1399.10L ₹1375.50C ₹1385.00Vol 13.3L sh
₹1.15k₹1.24k₹1.33k₹1.42k₹1.51k52L1385.002026-032026-06VolRSIMACD2026-032026-042026-062026-072026-09
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal

Daily technical trend read

Bearish setup

Trend is weak — long-term trend down. RSI 36.

  • Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
  • SMA20 roughly flat — short-term momentum stalled.
  • RSI(14) at 36 — falling, no extreme reading.
  • MACD below signal, histogram expanding negatively — bearish momentum building.
  • 17% off 52W high · 19% above 52W low.

Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.

Nifty 500 leadership

Relative Strength & Trend Stage

41
RS percentile
Stage 1 Base / Transition
1M return
-5.4%
3M return
+0.6%
6M return
+4.6%
1Y return
-11.2%
RS 1D
-1
RS 20D
-11
Sector rank
#1
Industry rank
#2
Stage evidence
  • Price is within 1.6% of the 30-week proxy.
  • The 30-week proxy changed +0.7% over 20 sessions.
  • The moving-average structure does not confirm Stage 2 or Stage 4.
50-DMA
price below
200-DMA
price above
Sector
leading
Industry
leading
Relative-strength line vs Nifty 500 (base 100)
264 observations
04 Sept 2026Value 88.34-0.70%
78859299106Aug 25Dec 25Apr 26Sept 2688
RS vs Nifty 50088

Valuation & score drivers

U-Score 37 · WATCHLIST · pillar breakdown, sector model, fair-value anchor

37U-SCORE
WATCHLIST

Fundamental score breakdown

WATCHLIST
Valuation2/30
Growth10/25
Quality4/20
Balance Sheet9/15
Cash Flow7/10
Piotroski
8/9 (+5)
Penalties
0
Raw sum
37

Why this score?

Top U-Score contributors and drags from the latest stored fundamentals.

37/100 · WATCHLIST

Positive drivers

  • Piotroski is strong at 8/9.
  • Cash flow contributes 7/10 to the score.
  • Balance sheet contributes 9/15 to the score.

Main drags

  • Fair-value margin of safety is negative at -6.3%.
  • Valuation is weaker at 2/30; verify the latest quarterly trend.
  • Quality is weaker at 4/20; verify the latest quarterly trend.
Sector valuation model

Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks

Healthcare valuation needs both earnings quality and regulatory/pipeline context.

Pharma PE/EVEBITDA
Primary lens
PE and EV/EBITDA adjusted for product mix and R&D/pipeline quality.
Secondary checks
USFDA risk, launch pipeline, margin trend, domestic vs export mix.
Main risk check
Regulatory setbacks or one-off product cycles can distort valuation.
PE
31.3
PB
3.3
EV/EBITDA
17.1
ROE
11.6%
ROCE
15.5%
FCF Yield
1.5%
Debt/Equity
0.0
MoS
-6.3%
Score movement

Stored run vs live recompute

This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.

Stored run: 05 Sept 2026
v4.3-runtime-valuation
Final score
37
Previous: 37
Verdict
WATCHLIST
Previous: WATCHLIST
Margin of safety
-6.3%
Previous: -6.3%

Score history

12 stored score snapshots. Latest stored move: +1 points.

05 Sept 2026
v4.3-runtime-valuation
44
40
36
36
36
36
36
36
36
36
36
37

Factor attribution

No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.

Modelled fair value

Graham Number
₹632.52
-119.0% MoS
Growth-justified P/E
31.2
Growth-justified Value
₹1,303.12
-6.3% MoS
PEG
3.13

Trust score

Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth

Trust Score
70Healthy Trust · low confidenceTrust Lite

Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.

Healthy Trust: Claim history is still being built. It ranks around the 63rd percentile of the scored universe and 50th percentile within Pharma. Main check: results consistency is weak at 39/100.

Healthy Trust Lite: Promoter pledge is zero. Key concern: 3 latest quarters had PAT decline worse than 25% YoY.

Computed 05 Sept 2026
management-trust-v1
191 docs text-extracted · 85 concalls text-extracted
Score band
Healthy Trust

Generally investable credibility. Look for weak sub-scores before increasing position size.

Relative rank
63rd percentile

overall median 67 · Pharma: 50th pctile, median 70 · Large: 41st pctile, median 73

Evidence depth
Financial-only

191 documents have extracted text, but claim history is not strong enough yet.

Claim delivery
Outcome history still building

0 claims extracted · No contradicted claim yet

How to read this Trust Score

Healthy Trust · low confidence
What it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Acceptable, but check the weakest sub-score before increasing exposure.

Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.

Forensic breakdown

Read low sub-scores as due-diligence warnings, not automatic sell signals.

Promoter
78
strong · holding, pledge, alignment
Cash flow
77
strong · profit to cash conversion
Balance sheet
96
strong · leverage and solvency
Discipline
50
watch · capital discipline
Results
39
weak · quarterly consistency

Trust positives

  • Promoter pledge is zero.
  • FCF yield is positive at 1.5%.
  • 11 years of positive FCF.
  • Debt/equity is 0.02.

Trust risks

  • 3 latest quarters had PAT decline worse than 25% YoY.
  • ROCE trend is -4.8%.
  • 1/4 latest quarters had positive YoY PAT growth.

Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.

Financials

Full fundamentals table and 10-year revenue / profit / ROE history

Fundamentals

Valuation

P/E
31.30
P/B
3.25
EV/EBITDA
17.15
Market Cap
111888.00Cr

Profitability

ROE
11.60%
ROCE
15.50%
ROA
7.93%
Dividend Y
0.94%

Growth (CAGR)

Revenue 5Y
8.00%
EPS 5Y
10.00%
Revenue 3Y
7.00%
EPS 3Y
10.00%

Balance Sheet

Debt/Equity
0.02
Interest Coverage
92.93×
Altman Z
8.51
Book Value
426.00

Cash Flow

FCF Yield
1.52%
FCF Positive Y
11/5
OCF
3940.00 Cr
EPS TTM
41.74

Shareholding

Promoter Hold
29.22%
Promoter Pledge
0.00%
Momentum 52W
43%

Financial History

Updated 5/9/2026

Revenue

₹ Cr
No data

Net Profit

₹ Cr
No data

Return on Equity

%
No data

Peers

Business-comparable names in Pharma, ranked by similarity

Verify on:NSE India ↗
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.