Shares of Cipla Ltd climbed 4.55% to ₹1,518.40 in early trade on April 3, joining the broader rally in Indian pharma stocks after the U.S. government excluded pharmaceuticals from the 26% reciprocal tariff regime announced by President Donald Trump. The move comes as a major relief for Indian generic drug exporters, which have significant exposure to the U.S. market.
Trump’s “Liberation Day” announcement on April 2 outlined a 26% tariff on Indian goods, citing combined tariff and non-tariff barriers as the rationale. However, the White House later clarified via a factsheet that pharmaceuticals, copper, semiconductors, and lumber articles would be exempt from these duties, as previously speculated by analysts.
Jefferies stated that Indian pharmaceutical companies can “breathe easy for now” with no direct duties imposed, although the brokerage maintained a cautiously optimistic stance and warned that pharma-specific tariffs cannot be ruled out in future policy updates.
Nomura, in its latest note, estimated Cipla’s U.S. revenue at $900-950 million for FY26 and FY27, highlighting that its Invagen facilities in the U.S. are expected to contribute 25-30% of that revenue. The brokerage also noted that Cipla is actively expanding U.S.-based manufacturing, especially after facing regulatory hurdles at some of its Indian sites.
This structural shift is expected to provide operational resilience if tariffs are ever imposed at a later stage, particularly as U.S. domestic manufacturing becomes a strategic hedge.
Cipla’s stock saw strong buying interest amid this backdrop, with the company’s market capitalization reaching ₹1.22 trillion. The stock traded in a range of ₹1,480.00 to ₹1,518.00 during the session.
The broader Nifty Pharma index, which had declined nearly 10% in recent months due to tariff-related concerns and broader market weakness, appears set for a relief rally as the worst-case scenario for the sector has been avoided for now.
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