Cipla faces revenue and margin pressure ahead of Revlimid patent expiry
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ET Intelligence Group: Cipla has underperformed the sector indices in the past twelve months following expected pressure on revenue and margin amid Revlimid patent expiry next year. The company expects margin to drop by 140-240 bps year-on-year in the current fiscal year. It has a couple of launches for FY26 but it still might not be able to compensate for the decline in Revlimid. Analysts have retained 'reduce' rating on the stock, citing muted growth for FY26-27. Cipla has guided operating margin before depreciation and amortisation to fall to 23.5-24.5% in FY26 from 25.9% in the previous year, due to Revlimid patent expiry. Elara Capital expects a further contraction of 300 bps in FY27 as the full loss of Revlimid will be reflected in that year. Agencies Cipla's future course of action when it comes to finding a suitor will be another concern that investors may have to grapple with given Torrent Pharmaceuticals' recent...