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Piramal Pharma Reports Q3 FY26 Results Amid Challenges

Piramal Pharma Limited, a prominent global player in the pharmaceutical sector, has recently revealed its financial performance for the third quarter (Q3) and the first nine months (9M) of FY26, which ended on December 31, 2025. The company, listed on both the NSE and BSE, showed notable fluctuations in its financial metrics compared to the previous year, reflecting various operational challenges.

Financial Highlights

In terms of revenue, Piramal Pharma reported a consolidated revenue from operations of ₹2,140 crores in Q3 FY26, representing a decline of 3% from ₹2,204 crores in the same quarter last year. For the nine-month period ending December 2025, the revenue stood at ₹6,117 crores, down 4% from ₹6,397 crores in FY25. This dip is attributed primarily to inventory destocking of a significant commercial product in the governance of a customer, alongside slower order inflows in the early stages of FY26 due to an inconsistent revival in U.S. biopharma funding and various trade policy uncertainties.

Despite these setbacks, other segments showed resilience. For example, the growth in the Complex Hospital Generics (CHG) division was particularly noteworthy, outperforming the overall market by achieving a 20% increase in revenue during Q3 FY26 compared to the previous year.

Cost Optimization Efforts

An essential aspect of Piramal's strategy was cost optimization, which partially buffered the impact of lower revenues on its earnings before interest, taxes, depreciation, and amortization (EBITDA). The company reported an EBITDA of ₹239 crores for Q3 FY26, which is a significant 32% decline year-on-year. However, the EBITDA margin improved to 11%, influenced by operational excellence measures.

Key Business Developments

Under the leadership of Chairperson Nandini Piramal, the company remains optimistic about long-term growth prospects despite the challenges faced in FY26. Significant initiatives are underway, particularly a planned US$90 million investment aimed at expanding its Lexington and Riverview facilities, which has garnered considerable customer interest.

Additionally, Piramal Pharma made strides in its Complex Hospital Generics segment by agreeing to acquire Kenalog®, a commercial injectable product, from Bristol-Myers Squibb in an all-cash deal worth up to $100 million, which is expected to complement its existing offerings and contribute positively to EBITDA margins.

Moreover, the company indicated a quick recovery in Request for Proposals (RFPs), attributed to improved biopharma funding and higher market activity in the US. Positive trends in order inflows have been observed since October 2025, suggesting that the company is positioned to rebound as conditions stabilize.

Conclusion

The upcoming Q4 is historically the strongest quarter for Piramal Pharma, and the company anticipates this trend to continue in FY26. They remain committed to providing high-quality products while exploring new avenues for growth. Through strategic investments and focused operational improvements, Piramal Pharma is looking to leverage its strengths and navigate the challenges ahead successfully.

As Piramal Pharma continues its journey through FY26, stakeholders are keenly observing any further progress in recovering from current setbacks while capitalizing on growth opportunities presented in the biopharma space and other booming sectors.