Cipla Ltd. has expressed optimism about exceeding its FY25 guidance, supported by strong operational performance and a focused strategy.

The company stated that supply challenges related to Lanreotide, a crucial product, are expected to ease from Q1 FY26, paving the way for improved output and consistent supply.

The management also highlighted that the trade business is back on track after facing challenges in recent quarters. Additionally, Q4 India growth is projected to be in the same range as Q3, signalling steady momentum in its domestic operations.

Cipla is awaiting regulatory approval for its gAbraxane product, used in cancer treatment, and hopes to launch it in H2FY26, which could provide a significant boost to its portfolio.

However, the company tempered expectations by cautioning that the current EBITDA margin of 28% is unsustainable in the long run.

Despite this, Cipla assured investors that PEPFAR (President’s Emergency Plan for AIDS Relief) funding, which has supported its HIV/AIDS medicines, is not a significant contributor to its margins and will have minimal impact on its overall business performance.

The Trump administration has instructed organizations in other countries to stop disbursing HIV medications purchased with US aid, even if the drugs have already been obtained and are sitting in local clinics. The directive is part of a broader freeze on foreign aid initiated last week.

Also read: Cipla Q3 Results: US sales beat expectations, while revenue, margin grow from last year

The pharma giant reported its Q3 results today, with revenue reaching ₹7,073 crore, a 7% increase year-on-year, beating analyst expectations of ₹6,870.2 crore. Net profit for the quarter surged 49% to ₹1,570 crore, compared to an estimated ₹1,175 crore.

EBITDA grew by 14% year-on-year to ₹1,989 crore, with margins expanding by 200 basis points to 28%. This performance exceeded the company’s guidance of 24.5%-25.5% for FY25.

Sales from the US market, a key revenue driver, stood at $226 million, slightly lower than last year but ahead of the ₹218 million expected by analysts.

Shares of Cipla ended the day on a strong note, closing at ₹1,426.10, up ₹30.20 or 2.16%, on the BSE.