Cipla shares jump 5% despite 55% profit crash — gVentolin approval, India growth reassure investors

Cipla shares rose as much as 4.75% to an intraday high of ₹1,353.8 on Wednesday after the company reported a 55% year-on-year decline in Q4 net profit to ₹554.6 crore. Revenue fell 3% to ₹6,541.2 crore and EBITDA dropped 38% to ₹955 crore, with margins compressing sharply to 14.6% from 22.8% a year ago.

The market reaction, however, pointed to a different reading of the results.

Revlimid exit fully priced in

The profit decline was largely driven by the loss of generic Revlimid revenues — a high-margin tailwind that had boosted earnings over the past two years and wound down through FY26 as the drug's patent exclusivity ended in January 2026. Analysts had already factored in the hit, and with the Revlimid chapter now closed, investor focus has shifted to what comes next.

gVentolin approval

The standout disclosure in the filing was Cipla receiving regulatory approval for the first AB-rated generic Ventolin — the first commercial MDI product ever manufactured from its US facility. The development is seen as a validation of Cipla's US inhalation manufacturing capability and positions it for a broader respiratory launch pipeline in FY27. The company also added Liraglutide, Nintedanib and Dapagliflozin to its US portfolio during the year.

All three USFDA-inspected facilities — Bommasandra (Bengaluru), Sitec (Navi Mumbai) and Medispray (Goa) — received 'VAI' or 'NAI' classifications, clearing a key regulatory overhang.

India business delivers

One India grew 15% YoY in Q4, with Branded Prescription, Trade Generics and Consumer Health all posting double-digit growth. Foracort crossed the ₹1,000 crore annual revenue threshold. Dytor grew 25% YoY to become a ₹650+ crore cardiac brand. The annual One India revenue crossed ₹12,500 crore for the first time, with chronic mix at 60.2%.

"Our One-India business surpassed the INR 12,500 crore annual revenue milestone," said Achin Gupta, MD and global CEO, Cipla.

Africa and EMEU add to the case

One Africa grew 21% YoY in Q4, with South Africa up 33%. The EMEU (emerging markets and Europe) business crossed $400 million in annualised revenues. Both segments are increasingly offsetting US pressure.

Strong balance sheet, higher dividend

Cipla ended FY26 with a net cash position of ₹10,526 crore. The board recommended a final dividend of ₹13 per share for FY26, up from ₹11 per share last year.

For the full year, Cipla reported its highest-ever revenue of ₹28,163 crore, up 2% YoY, with PAT at ₹3,879 crore and EBITDA margin at 21%.