Cipla Share Price Target 2025: Should You Buy Or Sell Pharma Company's Stock After Q4 Results 2025?

Emkay Global has reiterated its “Reduce” rating on Cipla, setting a March 2026 target price of Rs 1,500, citing “downside risks” to earnings and “margin pressures” amid an uncertain US launch pipeline.

While Cipla’s Q4 FY25 net profit beat expectations due to higher other income and a lower tax outgo, EBITDA came in slightly below estimates because of increased R&D expenditure. Despite the PAT beat, analysts remain cautious, highlighting that the underlying operating performance offers little comfort for FY26–27.

“Our revised target price of Rs 1,500 reflects a more realistic view of Cipla’s muted margin outlook and potential delays in key product launches,” stated Emkay Global.

Also Read: Cipla Dividend 2025: Pharma Stock Declares Rs 16 Cash Reward In Q4 Results 2025 - Check Record Date | Republic World

FY26 Margin Guidance

Cipla has guided for FY26 EBITDA margins of 23.5–24.5%, but the  expects performance to hover near the lower end. Additionally, Cipla’s US. revenue—seen as a major growth engine—is projected to remain flat over FY25–27, with Q1 FY26 sales guidance at $220 million.

The delay in launching the generic version of Advair, now contingent on FDA prioritization of filings from Cipla’s Long Island facility, further adds to the overhang. Meanwhile, gRevlimid sales remained stagnant at around $45 million, while Albuterol market share has stabilized at 18%.

Slash in EPS estimates

Reflecting these concerns, Emkay Global cut its FY26 and FY27 EPS estimates by 2% and 4%, respectively, and introduced projections for FY28. It emphasized that even its lowered FY27 estimates are contingent on timely US launches and sustained domestic growth—factors that currently lack clear visibility.

Steady Domestic business 

India sales grew 8% YoY, broadly in line with expectations. While prescription and trade generics posted solid growth, consumer health growth came in slightly lower at 10%, dragging down overall performance marginally.

Business Outlook

With regulatory uncertainties and soft US momentum clouding the near-term outlook, the Emkay believes Cipla’s current valuation does not adequately reflect execution risks. It warns that further earnings downgrades are likely unless key triggers materialize on schedule.