Mumbai, Oct 27 (IANS) Pharmaceutical major Cipla on Tuesday reported a 35 per cent year-on-year (YoY) decline in its consolidated net profit for the second quarter of FY27, as weaker sales in North America and a sharp contraction in operating margins weighed on its performance.

The company posted a net profit of Rs 878 crore for the quarter ended September 2026, compared with Rs 1,351.17 crore in the corresponding period of the previous financial year (Q2 FY26), according to its stock exchange filing.

Revenue from operations also declined 2.4 per cent to Rs 7,403.93 crore from Rs 7,589 crore a year ago.

Operating performance remained under pressure during the quarter. EBITDA fell 26.8 per cent to Rs 1,388 crore from Rs 1,895 crore in the year-ago period. Consequently, EBITDA margin contracted by 630 basis points to 18.7 per cent from 25 per cent.

Following the earnings announcement, Cipla's shares were trading 0.6 per cent lower at Rs 1,347 apiece during afternoon trade on Tuesday.

Despite the overall decline, the company's India business emerged as a key growth engine. Revenue from the domestic market rose 12 per cent year-on-year to Rs 3,516 crore, compared with Rs 3,146 crore in the same quarter last year. Cipla said its One-India business recorded its highest-ever quarterly sales during the period.

However, the strong performance in India was offset by weakness in overseas markets, particularly North America. Revenue from the region declined 19 per cent year-on-year to Rs 1,643 crore from Rs 2,039 crore. The North American business generated quarterly revenue of $172 million.

The company's One Africa business reported revenue of Rs 1,171 crore, down 1 per cent from a year earlier. Within the segment, South Africa revenue fell 3 per cent to Rs 872 crore, although Cipla noted that its South African private business grew 1.3 times faster than the broader market.

Revenue from emerging markets and Europe remained largely flat at Rs 967 crore despite geopolitical uncertainties. Meanwhile, the API and other businesses segment witnessed a sharp decline, with revenue plunging 59 per cent to Rs 107 crore from Rs 259 crore in the year-ago quarter.

--IANS

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