Financial Results (Consolidated)

Revenue Performance:

  • Revenue from operations: ₹7,119.28 crore (Q1 FY27) vs ₹6,957.47 crore (Q1 FY26)
  • Revenue from sale of products: ₹7,077.02 crore
  • Other operating revenue: ₹42.26 crore
  • Other income: ₹210.90 crore
  • Total income: ₹7,330.18 crore

Expense Breakdown:

  • Cost of materials consumed: ₹1,356.93 crore
  • Purchases of stock-in-trade: ₹1,251.70 crore
  • Changes in inventories: ₹58.55 crore
  • Employee benefits expense: ₹1,497.41 crore
  • Finance costs: ₹17.03 crore
  • Depreciation, impairment and amortization: ₹304.24 crore
  • Other expenses: ₹1,762.39 crore
  • Total expenses: ₹6,248.25 crore

Profitability Metrics:

  • Profit before exceptional items and tax: ₹1,081.93 crore
  • Exceptional item: None in current quarter (₹275.91 crore loss in FY26)
  • Total tax expense: ₹294.83 crore (Current tax: ₹392.78 crore, Deferred tax: ₹(97.95) crore)
  • Net profit after tax before share of associates: ₹787.10 crore
  • Share of loss of associates: ₹(1.55) crore
  • Net profit for period: ₹785.55 crore
  • Profit attributable to owners: ₹789.05 crore
  • Profit attributable to non-controlling interest: ₹(3.50) crore

Earnings Per Share:

  • Basic EPS: ₹9.77 (not annualized)
  • Diluted EPS: ₹9.76 (not annualized)

Capital Structure:

  • Paid-up equity share capital: ₹161.57 crore (80,78,45,316 equity shares of face value ₹2 each)
  • Other equity: ₹34,270.39 crore (as of 31st March, 2026)

Financial Results (Standalone)

Revenue Performance:

  • Revenue from operations: ₹5,077.68 crore
  • Revenue from sale of products: ₹4,672.12 crore
  • Other operating revenue: ₹405.56 crore
  • Other income: ₹242.75 crore
  • Total income: ₹5,320.43 crore

Profitability Metrics:

  • Profit before exceptional items and tax: ₹1,153.62 crore
  • Net profit after tax: ₹862.16 crore
  • Basic EPS: ₹10.67 (not annualized)
  • Diluted EPS: ₹10.67 (not annualized)

NPPA Litigation Update

The National Pharmaceutical Pricing Authority (NPPA) has issued demand notices to the Company since 1998 seeking recovery of alleged overcharge regarding scheduled drugs under Drugs (Prices Control) Orders-1995.

Historical Background:

  • Company filed writ petitions in 1999-2000 challenging drug inclusion under DPCO and demand notices
  • Bombay High Court decided in Company's favor on 31st August, 2001
  • Supreme Court set aside Bombay HC judgment on 1st August, 2003 and remanded matter
  • Company deposited ₹175.08 crore with NPPA representing 50% of alleged overcharged amounts

Current Status:

  • Company received subsequent demands post-2003 including duplicate demands
  • Bombay HC allowed amendment of pleadings on 23rd February, 2024 conditional on depositing 50% of subsequent demands
  • Company appealed to Supreme Court, which issued notice on 19th April, 2024
  • Company voluntarily deposited additional ₹27.07 crore on 15th July, 2025 towards principal

Financial Exposure:

  • Total demand notices aggregate ₹2,011 crore (after removing duplications)
  • Principal amount: ₹863 crore
  • Interest amount: ₹1,148 crore
  • Excludes ₹9.96 crore demands jointly addressed to Okasa Pharma/Oaksa Limited

Company Position:

  • Legally advised to expect favorable outcome
  • No provision considered necessary for any demand notices received till date

Capital Structure Changes

The paid-up equity share capital increased to ₹161.57 crore (80,78,45,316 equity shares) upon allotment of:

  • 54,903 equity shares pursuant to "ESOS 2013-A"
  • 7,782 equity shares pursuant to "Cipla ESAR Scheme 2021"

Exceptional Items

Effective 21st November, 2025, Government of India consolidated labour legislations into four Labour Codes ('New Labour Codes'). The Group recognized:

  • Consolidated: Incremental gratuity liability and increased leave liability aggregating ₹275.91 crore
  • Standalone: Incremental liability aggregating ₹244.37 crore

This exceptional item is due to revised definition of "wages" applicable to employees and contract labour.

Segment Information

The Group operates as a single operating segment - "Pharmaceutical and related products" - based on reassessment during year ended 31st March, 2026 consequent to change in Chief Operating Decision Maker (CODM).

Impairment Charges

During quarter and year ended 31st March, 2026, the group recorded impairment of ₹42.02 crore (consolidated) and ₹31.00 crore (standalone) in respect of associates due to change in business conditions and market dynamics.

Corporate Actions

Board of Directors on 19th March, 2026 approved Scheme of Amalgamation of Inzpera Healthsciences Limited (wholly owned subsidiary) with Cipla Limited. Scheme subject to approvals under Companies Act, 2013 including NCLT approval. Scheme filed with NCLT Mumbai and approval awaited.

Accounting Policy Change

Effective 1st April, 2026, the Group presents certain marketing and promotional expenditures as reduction from Revenue from Operations instead of within Other Expenses. This change is presentation only and has no impact on Profit, EPS, Equity or Cash Flows.

Auditor Review

The results were reviewed by statutory auditors B S R & Co. LLP who expressed an unmodified review conclusion. The review covered the consolidated entities including 14 subsidiaries and 1 associate whose financials were reviewed by other auditors.

Documents Availability

The financial results and limited review report are available on the Company's website (www.cipla.com) and stock exchange websites (BSE and NSE).