#India #healthcare #Mumbai #pharmaceuticals #Piramal Pharma

Overview of Piramal Pharma Limited's Q1 FY26 Results

Piramal Pharma Limited, a prominent player in the global pharmaceutical and health sectors, unveiled its financial outcomes for the first quarter of the fiscal year 2026 (Q1 FY26) on July 30, 2025. The company reported a slight decline in revenue while facing various operational challenges.

Financial Highlights

In Q1 FY26, the total revenue from operations stood at ₹19,340 million, showing a marginal decrease of 1% compared to ₹19,510 million in the previous fiscal year. The following segments contributed to this performance:

• - Contract Development and Manufacturing Organization (CDMO) recorded revenues of ₹9,970 million, down by 6%.
• - Complex Hospital Generics (CHG) saw a slight increase with revenues of ₹6,370 million, up by 1%, while
• - Piramal Consumer Healthcare (PCH) showed robust growth, reaching ₹3,020 million, up by 15%.

The adjusted EBITDA for the quarter was ₹1,650 million, representing a significant drop of 26% year on year, leading to an EBITDA margin of 9%, down from 11% in Q1 FY25. Additionally, the net loss after exceptional items was recorded at ₹820 million, slightly improving from a loss of ₹890 million in the previous year.

Operational Insights

Despite the financial setbacks, Piramal Pharma's CDMO business experienced steady growth when excluding the impact of inventory destocking linked to a key patented commercial product. The adjustments to their operational framework and improvements in overseas profitability are contributing positively to the long-term strategy.

Nandini Piramal, the chairperson of the company, expressed optimism about the projected growth trajectory. The company anticipates that the CHG segment will witness accelerated growth as institutional orders are expected to materialize later in the fiscal year. Consumer products and e-commerce sales remain promising, highlighting the potential for recovery and expansion in difficult market conditions.

Recent Developments

A major highlight was the successful completion of the USFDA inspection of the Aurora facility in Canada without any findings, maintaining an exemplary compliance record that has persisted since 2011. Furthermore, the company's commitment to sustainability was recognized with an ESG rating of '61' from NSE Sustainability Ratings and Analytics Limited.

Piramal Pharma’s initiatives include enhancing their production capabilities in Lexington, USA, for sterile injectable medications, which is anticipated to boost growth through their integrated ADC development and manufacturing program in the mid to long term.

Future Outlook

The company's outlook includes aggressive targets to reach a revenue of $2 billion by FY30, with goals of achieving an EBITDA margin of 25% and a return on capital employed (ROCE) of 15%. Piramal Pharma believes that despite facing short-term obstacles, the strategies in place will steer the company back to a growth trajectory.

Conclusion

In summary, while the recent results indicate a challenging quarter for Piramal Pharma Limited, the firm's strategic initiatives in various segments, combined with strong consumer demand and operational improvements, position it for potential recovery and success in the upcoming quarters. Investors and analysts are invited to join a conference call scheduled for July 29, 2025, to discuss these results in greater detail.

For more information about Piramal Pharma Limited, visit Piramal Pharma's LinkedIn.