Archive · 26 Jan 2026
Nuvama Downgrades Cipla on Weak Q3 Performance
Cipla, a big Indian medicine company, recently shared its financial results for the third quarter.
A company called Nuvama, which gives advice on stocks, said Cipla's results were not as good as expected.
They think the company's profits will go down, so they told people to be careful about buying Cipla's stock.
The main reasons are that Cipla is spending more on research, and some of their important medicines are not selling as well.
However, Cipla has some new medicines in the works that might help in the future.
Nuvama lowered their price target for Cipla's stock to Rs 1,280.
They think the stock might not do well unless Cipla can improve its profits and solve some of its problems.
Nuvama reiterated a 'Reduce' rating on Cipla with a target price of Rs 1,280, implying a 2.7% downside.
Cipla's Q3FY26 revenue was flat year-on-year at Rs 7,070 crore, but EBITDA margin dropped to 17.7%.
Research and development expenses increased by 37% year-on-year, squeezing profitability.
The decline in gRevlimid contribution and supply chain issues with Lanreotide added to margin pressures.
Nuvama lowered its earnings per share estimates for FY26 and FY27 by 10% and 5%, respectively.
- Who
- Cipla, a leading Indian pharmaceutical company
- What
- Nuvama downgraded Cipla's stock to 'Reduce' with a target price of Rs 1,280
- When
- After Cipla's Q3FY26 results were announced
- Where
- India
- Why
- Due to weaker-than-expected performance, margin pressures, and earnings concerns
- Company
- Cipla
- Brokerage
- Nuvama
- Rating
- Reduce
- Target Price
- Rs 1,280
- Revenue (Q3FY26)
- Rs 7,070 crore
- EBITDA Margin (Q3FY26)
- 17.7%
- R&D Spending (YoY Increase)
- 37%
- gRevlimid Impact
- Decline in contribution