Positive growth outlook for Cipla

LED BY US GENERICS, DOMESTIC FOCUS & COST DISCIPLINE

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CIPLA REPORTED A 4% operating beat in 1QFY26, led by robust US sales, partially offset by weakness in the domestic Rx business. After sluggish last few quarters, we expect Cipla's domestic growth to pick up hereon, driven by launches, new divisions and uptick in the acute season.

Despite the gRevlimid cliff, we expect ramp-up in Lanreotide, gAbraxane, gAdvair launch in 2HFY26, peptide launches as well as gSymbicort and gQvar launches in FY2027E to drive a steady 3% US sales CAGR over FY2025-28E. This, along with healthy growth in emerging markets (EMs), should drive a double-digit ex-gRevlimid EPS CAGR for Cipla over FY2025-28E.

Retain BUY with a revised fair value (FV) of ₹1,815.