Cipla leans into chronic and obesity therapies as key growth drivers

Pharmaceutical major Cipla is focusing on obesity and advanced diabetes care to maintain steady growth, as the revenue contribution from its key U.S. generic cancer drug, Revlimid, begins to slow.

The Mumbai-based firm reported revenue of ₹7,589 crore in the second quarter of FY26, representing an 8% increase from the same period a year ago, with an EBITDA margin of 25 per cent. Net profit rose 3.7 per cent to ₹1,351 crore, while EBITDA stood at ₹1,895 crore. The company ended the quarter with ₹9,901 crore in cash and negligible debt.

With Revlimid sales gradually tapering off, Cipla is widening its focus on chronic and speciality therapies. A key part of this plan is its entry into the GLP-1 agonist class of drugs, used for treating diabetes and obesity.

Through an exclusive partnership with Eli Lilly, the company has begun distributing and promoting Yurpeak (Tirzepatide) in India, known globally as Mounjaro. Cipla describes obesity care as a “market-shaping opportunity” in a country where 101 million people live with diabetes and another 100 million struggles with obesity.

Its domestic prescription business continues to record double-digit growth across anti-diabetes, cardiac and urology segments. “We continue to make progress across our focused markets. With the launch of Yurpeak (Tirzepatide), we take a step into obesity care through our strategic partnership with Eli Lilly,” said Umang Vohra, Managing Director and Global CEO of Cipla.

To strengthen its presence in metabolic health, Cipla has launched a generic version of Semaglutide the molecule behind Novo Nordisk’s Ozempic and Wegovy in India’s ₹21,404.34 crore anti-diabetes market (MAT September 2025).

The United States continues to be one of Cipla’s most important markets. The North America business reported revenue of $233 million in the quarter, supported by respiratory and peptide-based products. Cipla holds a 22 per cent share each in the Albuterol MDI and Lanreotide markets. As Revlimid revenue declines, the company is working to build its portfolio of complex generics, peptides and biosimilars.

Research and development spending increased to ₹539 crore in Q2 FY26, about 7.1 per cent of total revenue. Several key launches are planned over the next year, including respiratory drugs such as the generic versions of Advair and Symbicort, peptide products like Liraglutide (the generic of Victoza/Saxenda), and gForteo.

The company launched its first biosimilar, Filgrastim, in the U.S. earlier this year, marking its entry into the biologics space. These products are expected to help Cipla move closer to its $1 billion U.S. revenue target by FY27.

Market confidence in Cipla’s long-term strategy remains firm. Equirus Capital, which has a “LONG” rating on the stock, has set a price target of Rs 1,823 for March 2026, noting the company’s diversified portfolio and steady margins. While growth may moderate due to a high FY25 base, analysts expect Cipla to maintain stability across its core markets.
Cipla’s pipeline of complex products, along with consistent growth in South Africa, where secondary sales are rising 1.3 times faster than the overall market, and a stable presence in Europe, is likely to support profitability. Equirus estimates Cipla’s core Return on Invested Capital (ROIC) at 19–20 per cent, with EBITDA margins expected to remain around 23.5–24 per cent through FY28.