WatchTalking point
Debt rising as profit falls
Total debt rose 180.1% while net profit fell 26.7% — worth checking how the balance sheet is being funded.
Importance 77 / 95 · financial health
Cipla · Research view
Cipla Ltd.
NSE: CIPLABSE: 500087ISIN INE059A01026Face value ₹2standalone
₹1,347
−2.61% · 2026-10-01 · 52-wk ₹1,192–₹1,664
Financials to FY2026 · 5 years of history · prices to 2026-10-01consolidatedstandalone
Section 02 · Synthesis
What stands out?
The strongest observations the engine found, ranked. Every line is generated from the filed numbers by a fixed rule — no opinion, no estimate.
StrengthConcernWatchContext
WatchTalking point
Profit lagging revenue
Revenue grew 2.2% but profit declined 26.7%, so the company kept less of each rupee of revenue as profit.
Importance 73 / 95 · growth
WatchTalking point
Sharp margin drop
EBITDA margin dropped 5.0 percentage points in a single year, from 29.0% to 24.0% — worth investigating.
Importance 68 / 95 · anomaly
Section 03 · The company
Who is this company?
Classified by the exchange under Healthcare › Healthcare › Pharmaceuticals & Biotechnology › Pharmaceuticals.
- Market cap
- ₹1.09 L cr
- FY2026 revenue
- ₹18,980 cr
- FY2026 net profit
- ₹3,515 cr
- Net worth
- ₹34,201 cr
- Total debt
- ₹11 cr
- EPS (basic)
- ₹43.52
- Listed
- NSE · BSE
- Reporting
- Ind-ASApr–Mar
Peer set used on this page: 12 pharmaceuticals.
Section 04 · Business performance
Is the business growing?
RevenueNet profit
Watch
Revenue grew 2.2% but profit declined 26.7%, so the company kept less of each rupee of revenue as profit.
Rule PROFIT_SLOWER_THAN_REVENUE
- Revenue growth per year
- +9.7%over 4 years
- Revenue growth
- −0.3%vs last year
- Net profit growth
- −31.8%vs last year
- Change in net profit since FY22
- +19%
Over 4 years profit compounded at 11.0% a year while revenue compounded at 6.7% a year — though FY2024 saw a one-off step-change of 47% (a merger, restructuring or a recovery off a low base), so the compounding is uneven.
Net profit fell 26.7% year on year (FY2025 → FY2026).
Revenue has compounded at 6.7% a year over 4 years (₹21,763 → ₹28,163) — steady rather than rapid.
Section 05 · Recent activity
What changed recently?
Quarterly results, the trailing-twelve-months snapshot, and verified corporate actions — kept separate from each other and from the annual story above. Every figure traces to a filed number; nothing here is external news or commentary.
Concern
Q1 FY27 net profit was ₹786 cr, down 39.2% from ₹1,292 cr a year earlier.
Rule QTR_PROFIT_GROWTH_YOY
Watch
Q1 FY27 net profit declined 39.2% while revenue grew 2.3% vs the same quarter last year — a gap of 41.5 percentage points.
Rule QTR_PROFIT_VS_REVENUE_GROWTH
Concern
Q1 FY27 EBIT was ₹1,099 cr, down 38.4% from ₹1,784 cr a year earlier.
Rule QTR_OPERATING_PERFORMANCE_CHANGE_YOY
A. Quarterly results
RevenueNet profit
| Quarter | Revenue | YoY | Net profit | YoY | Net margin |
|---|---|---|---|---|---|
| Q2 FY25 | 7,051 | — | 1,305 | — | 18.5% |
| Q3 FY25 | 7,073 | +7.1% | 1,575 | +47.4% | 22.3% |
| Q4 FY25 | 6,730 | +9.2% | 1,214 | +30.3% | 18.0% |
| Q1 FY26 | 6,957 | +3.9% | 1,292 | +9.9% | 18.6% |
| Q2 FY26 | 7,589 | +7.6% | 1,353 | +3.7% | 17.8% |
| Q3 FY26 | 7,074 | +0.0% | 674 | −57.2% | 9.5% |
| Q4 FY26 | 6,541 | −2.8% | 543 | −55.3% | 8.3% |
| Q1 FY27 | 7,119 | +2.3% | 786 | −39.2% | 11.0% |
B. TTM snapshot
Trailing twelve months to 30 Jun 2026 · sum of the last 4 contiguous quarters
- Revenue
- ₹28,324 crTTM
- EBITDA
- ₹6,131 crTTM
- EBIT
- ₹4,869 crTTM
- PBT
- ₹4,536 crTTM
- Net profit
- ₹3,356 crTTM
C. Corporate actions
5 Jun 2026DividendFinal Dividend - Rs. - 13.0000 — ₹13.00/share
27 Jun 2025DividendSpecial Dividend - Rs. - 3.0000 — ₹3.00/share
27 Jun 2025DividendFinal Dividend - Rs. - 13.0000 — ₹13.00/share
2 Aug 2024DividendFinal Dividend - Rs. - 13.0000 — ₹13.00/share
21 Jul 2023DividendFinal Dividend - Rs. - 8.5000 — ₹8.50/share
8 Aug 2022DividendDividend - Rs. - 5.0000 — ₹5.00/share
9 Aug 2021DividendDividend - Rs. - 5.0000 — ₹5.00/share
19 Mar 2020DividendSpecial Dividend - Rs. - 1.0000 — ₹1.00/share
19 Mar 2020DividendInterim Dividend - Rs. - 3.0000 — ₹3.00/share
31 Jul 2019DividendDividend - Rs. - 3.0000 — ₹3.00/share
13 Aug 2018DividendDividend - Rs. - 3.0000 — ₹3.00/share
26 Jul 2017DividendDividend - Rs. - 2.0000 — ₹2.00/share
12 Sept 2016DividendDividend - Rs. - 2.0000 — ₹2.00/share
11 Aug 2015DividendDividend - Rs. - 2.0000 — ₹2.00/share
6 Aug 2014DividendDividend - Rs. - 2.0000 — ₹2.00/share
6 Aug 2013DividendDividend - Rs. - 2.0000 — ₹2.00/share
1 Aug 2012DividendDividend - Rs. - 2.0000 — ₹2.00/share
9 Aug 2011DividendFinal Dividend - Rs. - 2.0000 — ₹2.00/share
3 Sept 2010DividendInterim Dividend - Rs. - 0.8000 — ₹0.80/share
23 Jul 2010DividendDividend - Rs. - 2.0000 — ₹2.00/share
10 Aug 2009DividendDividend - Rs. - 2.0000 — ₹2.00/share
12 Aug 2008DividendDividend - Rs. - 2.0000 — ₹2.00/share
8 Aug 2007DividendDividend - Rs. - 2.0000 — ₹2.00/share
11 May 2004Otherother
6 Aug 2001DividendDividend - Rs. - 4.5000 — ₹4.50/share
Section 06 · Business performance
Is it becoming more profitable?
EBITDA marginNet margin
Concern
ROE declined from 18.1% to 11.7% year on year.
Rule ROE_DETERIORATED_YOY
- EBITDA margin now
- 29.3%
- 5-year range
- 26.9–35.5%
- ROE FY2026
- 10.6%
- ROCE FY2026
- 14.8%
EBITDA margin has ranged from 22.2% to 29.0% over 4 years and sits at 24.0% now.
Section 07 · Financial health
Is financial health improving?
Net worth (shareholders' funds)
Watch
Total debt rose 180.1% while net profit fell 26.7% — worth checking how the balance sheet is being funded.
Rule DEBT_UP_EARNINGS_DOWN
Operating cash flowNet profit
- Total debt
- ₹11 cr
- Operating cash flow ÷ net profit
- 0.81×FY2026
- Free cash flow
- ₹2,060 cr
- Current ratio
- 4.63×
Net worth compounded at 13.1% a year over 4 years (₹21,117 → ₹34,520).
Free cash flow has been positive in 5 of the last 5 years.
Section 08 · Relative position
How does it compare with peers?
Ranked against 12 pharmaceuticals (FY2026, consolidated).
Revenue growth
CIPLA · 12th of 12 · set median 14.8%
EBITDA margin
CIPLA · 9th of 12 · set median 28.7%
Return on equity
CIPLA · 9th of 12 · set median 14.4%
P/E ratio
CIPLA · 5th of 12 · set median 36.3×
Context
Trades at 3.15× book — 32% below the pharmaceuticals median of 4.65×.
Rule PB_BELOW_PEERS
- P / E
- 32.4×TTM to Jun 26
- P / B
- 3.2×latest book
- P / S
- 3.8×TTM sales
- Earnings yield
- 3.1%TTM to Jun 26
On the trailing twelve months. Last full year: P/E 28.2× · P/S 3.7× · ROE 11.7%.
Section 09 · The stock
How has the stock performed?
Context
Over 4 years profit compounded at 11.0% a year while the stock returned 4.3% a year — the FY2022 base was somewhat depressed, so part of this is recovery rather than trend.
Rule STOCK_LAGGED_EARNINGS · rebound
- 1-year return
- −11.0%
- 3-year return
- +13.5%
- 5-year return
- +36.6%
- From 52-wk high
- −19.0%
Section 10 · Technical data
What does the technical data say?
Price-action indicators as of 2026-10-01. Secondary to the fundamentals above — included for timing context, not as a signal.
- vs 50-day avg
- Below₹1,419
- vs 200-day avg
- Below₹1,384
- RSI (14)
- 34.3neutral
- MACD histogram
- 0.2
- From 52-wk high
- −19.0%
- From 52-wk low
- +13.0%
- 30-day volatility
- 15.2%ann.
- 6-month return
- +10.5%
Section 11 · Open questions
What should I investigate further?
Observations the engine tagged watch or deteriorating — prompts for your own research, not conclusions.
- WatchDebt rising as profit fallsTotal debt rose 180.1% while net profit fell 26.7% — worth checking how the balance sheet is being funded.DEBT_UP_EARNINGS_DOWN · conviction 77
- WatchProfit lagging revenueRevenue grew 2.2% but profit declined 26.7%, so the company kept less of each rupee of revenue as profit.PROFIT_SLOWER_THAN_REVENUE · conviction 73
- WatchSharp margin dropEBITDA margin dropped 5.0 percentage points in a single year, from 29.0% to 24.0% — worth investigating.MARGIN_SHARP_DROP · conviction 68
- ConcernReturns decliningROE declined from 18.1% to 11.7% year on year.ROE_DETERIORATED_YOY · conviction 48
- ConcernProfit fellNet profit fell 26.7% year on year (FY2025 → FY2026).PROFIT_DECLINED_YOY · conviction 47
Data coverage is complete — 5 years of financials (FY2022–FY2026), full P&L, balance sheet and cash-flow statement, sector metrics fully mapped.
Section 12 · Reference
The numbers
The full statements, kept deliberately secondary. Every figure traces to a BSE Integrated Filing (inline XBRL); ratios are recomputed from the normalised facts.
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 13,092 | 15,791 | 16,574 | 19,045 | 18,980 |
| Total income | 13,758 | 16,247 | 17,645 | 20,030 | 20,103 |
| EBITDA | 4,033 | 4,249 | 5,555 | 6,763 | 5,558 |
| Profit before tax | 3,546 | 3,441 | 4,947 | 6,469 | 4,636 |
| Net profit | 2,958 | 2,513 | 4,077 | 5,158 | 3,515 |
| EPS (₹) | 36.7 | 31.1 | 50.5 | 63.9 | 43.5 |
| Net worth | 22,514 | 24,638 | 27,974 | 32,099 | 34,201 |
| Total debt | 0 | 0 | 0 | 0 | 11 |
| Operating cash flow | 2,773 | 3,035 | 3,727 | 3,301 | 2,832 |
| Free cash flow | 2,479 | 2,479 | 3,206 | 2,754 | 2,060 |
| Ratio | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth YoY | — | 20.6 | 5.0 | 14.9 | -0.3 |
| Profit growth YoY | — | -15.0 | 62.2 | 26.5 | -31.8 |
| Profitability | |||||
| EBITDA margin % | 30.8 | 26.9 | 33.5 | 35.5 | 29.3 |
| Net margin % | 21.5 | 15.5 | 23.1 | 25.8 | 17.5 |
| Return on equity % | 13.1 | 10.7 | 15.5 | 17.2 | 10.6 |
| Return on capital % | 15.9 | 15.5 | 18.9 | 20.6 | 14.8 |
| Leverage & cash | |||||
| Debt to equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Cash flow ÷ profit | 0.94 | 1.21 | 0.91 | 0.64 | 0.81 |
| Current ratio | 4.22 | 4.95 | 5.19 | 5.77 | 4.63 |