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Piramal Pharma Limited Reports Q1 FY26 Results

Piramal Pharma Limited, a prominent player in the global pharmaceutical and wellness sectors, has shared its financial outcomes for the first quarter of the fiscal year 2026. The report highlights both achievements and challenges encountered during this period.

Financial Overview

Piramal's consolidated financial results for Q1 FY26 indicate a slight drop in revenue, with operational income reaching ₹1,934 crores compared to ₹1,951 crores the previous year, showcasing a nominal decline of 1%. However, when excluding the impact of inventory de-stocking from a key CDMO product, year-over-year revenue growth hovered in the lower double digits.

Segment Performance

• - Contract Development and Manufacturing Organization (CDMO): Revenue declined by 6% to ₹997 crores. Excluding the inventory impact, the growth was approximately 15%. Their overseas facilities positively impacted profitability over the year.
• - Complex Hospital Generics (CHG): Growth maintained at 1%, reflecting steady demand in a competitive sector. The approval process for new products like Sevoflurane at their Digwal facility is a highlight.
• - Piramal Consumer Healthcare (PCH): This segment experienced significant growth of 15%, buoyed by strong sales in Power Brands and a rapidly growing e-commerce sector. These brands contributed to 49% of total sales and reported an impressive 41% increase in online sales compared to last year.

Operational Highlights

Piramal noted the successful conclusion of a USFDA inspection at their Aurora, Canada facility without any observations, contributing to their ongoing status of 'zero 483s' since 2011. This achievement underlines the company's commitment to maintaining high operational standards.

Sustainability Efforts

Piramal Pharma is also making strides in sustainability, receiving an ESG rating of 61 from NSE Sustainability Ratings for FY24, affirming their dedication to responsible business practices.

Nandini Piramal, Chairperson of Piramal Pharma Limited, underlined the solid growth in the CDMO sector whilst also acknowledging the short-term challenges that affected overall margins. "If we exclude the impact from inventory de-stocking, our CDMO business has shown revenue growth of about 15% this quarter, alongside improved EBITDA margins—especially at our overseas facilities. We remain optimistic about accelerating growth for our CHG division in the coming quarters, driven by institutional order timelines. This quarter's performance reinforces our roadmap to reach our ambitious revenue targets set for FY30: achieving $2 billion in revenues with an EBITDA margin of 25%."

Challenges Ahead

Despite the positive trajectory in certain segments, Piramal faces ongoing challenges within the rapidly evolving biopharma landscape. Disrupted funding for emerging biopharmaceutical companies has led to slow decision-making from clients, and the company anticipates a gradual recovery in project development timelines.

Conference Call

Piramal Pharma will host a conference call for investors and analysts on July 29, 2025, to delve into these results, providing insights on future strategies and projected outcomes for the fiscal year.
In conclusion, while the initial quarter of FY26 has presented hurdles, Piramal Pharma Limited's strategic position in both traditional and innovative markets positions it favorably for sustainable growth moving forward. With key initiatives already in place, both operationally and in terms of market dynamics, the company looks set to navigate the current economic climate effectively.