Cadila reported a strong 3QFY16. A 335bps of QoQ improvement in EBITDA margin was driven by (1) 7% QoQ growth in the US, led by a few one-offs and HCQS, (2) Flat staff cost and (3) Other operating income of Rs 866mn (up 122% YoY). Higher R&D; (9.7% of sales) was offset by flat other expenses.