Cipla delivered its highest-ever first-quarter revenue of ₹7,100 crore in Q1 FY27, according to reports from The Financial Express. The company's One India business recorded its highest quarterly revenue with 12% year-on-year growth, while the branded prescription business expanded 15.4%, outpacing market growth. In contrast, Dr. Reddy's reported revenue of ₹8,071 crore, down 5.6% year-on-year but up 7.4% sequentially, as reported by The Financial Express. The decline was attributed to lower lenalidomide sales and a ₹240 crore provision linked to the semaglutide API issue. Cipla's EBITDA margin stood at 29.5%, supported by favorable business mix and sustained India growth, while Dr. Reddy's EBITDA margin was 12.5%, though it would have been 15.4% excluding the semaglutide provision.
According to The Financial Express, Cipla's respiratory segment grew 15%, anti-diabetes increased 43%, and cardiac segment expanded 20%. The chronic therapies portfolio increased its share to 60.4% of the domestic portfolio. Dr. Reddy's underlying business continued to deliver healthy double-digit growth across major markets, including North America, supported by new product launches and favorable currency movements, as reported by The Financial Express. Cipla's management highlighted encouraging traction for Yurpeak in obesity and continued momentum from new launches across respiratory and immunology segments.
Dr. Reddy's reported mixed regional performance in the June quarter, with significant challenges in North America offset by strong growth in emerging markets and Europe. Revenue from North America fell 35% year-on-year to ₹2,200 crore, though it rose 26% sequentially, accounting for 27% of consolidated revenue. The company attributed the year-on-year decline largely to lower sales of Lenalidomide. During the quarter, Dr. Reddy's launched six new products in the region and filed five Abbreviated New Drug Applications (ANDAs) and one New Drug Application (NDA) with the USFDA. The Emerging Markets business posted revenue of ₹1,830 crore, up 31% year-on-year and 2% quarter-on-quarter, contributing 23% of consolidated revenue, driven by new product launches across markets and favorable foreign exchange movements. Revenue from Europe rose 13% year-on-year to ₹1,440 crore and was flat sequentially, accounting for 18% of consolidated revenue, supported by new generic launches and favorable currency movements.
As reported by The Financial Express, Cipla expects North America to strengthen sequentially, supported by four major launches comprising three respiratory products and one key peptide opportunity. The company maintains its ambition of achieving a $1 billion North America exit revenue run rate and expects North America Generics revenue to increase from $162 million in Q1 FY27 to about $250 million by Q4 FY27. Dr. Reddy's plans to resume semaglutide commercial supplies by November 2026, with CEO Erez Israeli expressing confidence in a strong second half of FY27. The company also expects to expand its biosimilar portfolio and reduce dependence on Revlimid.
According to The Financial Express, Nomura retained its 'Buy' rating on Cipla with a target price of ₹1,510, citing the USFDA approval for generic Advair Diskus and expecting the product to generate $30-40 million in annual revenue. Emkay Global maintained its 'Reduce' rating with a target price of ₹1,200, noting that the June quarter margin miss was steeper than expected. Nomura expects EBITDA margin to recover toward 20% as one-off costs subside and higher-value launches contribute to earnings. Dr. Reddy's received mixed brokerage views, with Nomura retaining its 'Buy' rating at ₹1,740 citing potential upside from semaglutide recovery and abatacept biosimilar, while Emkay Global maintained its 'Reduce' rating at ₹1,200 due to earnings downgrade concerns. Shares of Dr. Reddy's Laboratories Ltd ended at ₹1,143.20, up by ₹7.55, or 0.66%, on the BSE.
