Cipla, third-largest drugmaker ​by revenue, reported a weaker-than-expected fourth quarter profit on ‌Wednesday (May 13, 2026), as sharp weakness in its U.S. business ​and higher costs outweighed strong domestic ⁠demand.

The drugmaker’s consolidated net profit fell 54.6% year-over-year (YoY) to ₹5.55 billion ($58 million) in the quarter ended ‌March 31, missing analysts’ average estimate of ₹7.05 billion, according to data compiled ‌by London Stock Exchange Group (LSEG).

Total revenue from operations fell ‌2.8% ⁠to ₹65.41 billion, below the average ⁠expectations of ₹67.49 billion, hurt by a sales decline in its key North America market.

Domestically, ​Cipla’s biggest market ‌by sales, jumped 15% to ₹30.07 billion, while revenue from North America fell 26% to ₹14.14 billion. The Indian and North American ‌markets account for roughly three-fourths of the ​drugmaker’s total sales. Total expenses rose nearly 8.5% to ₹18.82 billion, driven by ⁠higher costs. The company also recorded an impairment charge of about ₹420.2 million on its ‌associates, adding to cost pressures.

Analysts at Jefferies Group said in a pre-earnings note that they expect U.S. sales to decline in the near term owing to erosion in key products, with margins likely to remain under pressure until new ‌launches scale up.

The company declared a dividend of ₹13 per share. Rival Dr. Reddy’s Laboratories reported a sharp drop in quarterly profit on ⁠Tuesday (May 12, 2026), hurt by an impairment charge linked to ⁠its discontinued cancer therapy programme. However, Cipla shares were trading 4.23% higher in the afternoon. ‌The stock has fallen about 14.3% so far this year. ($1 = ₹95.6700)