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Piramal Pharma Limited Reports Q3 and 9M FY26 Financial Results

Piramal Pharma Limited, one of the leading global pharmaceutical and wellness companies, recently announced its standalone and consolidated financial results for the third quarter (Q3) and the first nine months (9M) of fiscal year 2026. The reports reflect a mix of challenges and encouraging recovery signs within various sectors of the company.

Financial Overview

During Q3 FY26, Piramal Pharma reported revenues amounting to ₹2,140 Crores, slightly down by 3% from ₹2,204 Crores in the same quarter of the previous year. For the first nine months of FY26, revenues totaled ₹6,117 Crores, marking a decrease of 4% compared to ₹6,397 Crores in FY25. This decline was primarily influenced by inventory destocking of a significant on-patent product and fluctuations in early-stage order inflows due to inconsistent biopharma funding and regulatory delays.

Despite the decline in revenues, the company's efforts towards cost optimization partially cushioned the impacts on earnings before interest, taxes, depreciation, and amortization (EBITDA), which stood at ₹239 Crores for Q3 FY26, down 32% year-on-year (YoY). The EBITDA margin declined to 11% from 16% in Q3 FY25, reflecting the challenging market conditions.

Key Factors Affecting Performance

Nandini Piramal, the Chairperson of Piramal Pharma Limited, highlighted that the fiscal year had been subdued largely due to these market disruptions. However, she expressed optimism regarding the signs of recovery, with an increase in request for proposals (RFPs) and early order inflows since October 2025, attributed to improved biopharma funding and expanded merger and acquisition activities in the U.S. healthcare sector.

Moreover, the company plans a significant investment of USD 90 million aimed at enhancing its Lexington and Riverview facilities, indicating positive customer interest and potential growth areas moving forward.

Business Segments Breakdown

Contract Development and Manufacturing Organization (CDMO)

For the CDMO sector, which is crucial for Piramal's operations, there is a promising recovery in funding as the second half of 2025 saw an increase compared to the first half and the previous year's second half. The company noted a rise in RFPs and order inflow from both large pharmaceutical firms and mid-sized biotech companies, signaling a rebound. A consistent biopharma funding stream along with expedited customer decision-making is vital for the growth outlook in FY27.

Complex Hospital Generics (CHG)

In a significant move, Piramal Pharma has entered into an agreement to acquire Kenalog® from Bristol-Myers Squibb for an all-cash total of USD 100 million. The Kenalog injection product aligns well with the existing CHG portfolio and is expected to generate favorable EBITDA margins. It captures a growing market segment, particularly in inhalation anesthesia, where Piramal holds a market share of 47% in the U.S.

Consumer Healthcare (PCH)

On a more positive note, the Consumer Healthcare division reported robust growth, with power brands experiencing 30% growth YoY during Q3 FY26, which significantly contributed to total sales. The company launched 31 new products in the first nine months of FY26, with e-commerce sales exhibiting a remarkable 50% growth YoY, accounting for roughly 26% of PCH sales.

Moving Forward

Looking ahead, while FY26 has indeed posed challenges, Piramal Pharma remains committed to long-term growth. The company is optimistic about Q4, historically its strongest quarter, and is gearing up to capture new opportunities in the market. Timely investments in capacity and innovative products will serve as the backbone for future undertakings as Piramal navigates through varying market conditions.

In conclusion, Piramal Pharma Limited’s recent results highlight both the resilience and potential recovery strategies within the firm. As the finance and healthcare landscapes evolve, the company's proactive adjustments could pave the way for sustainable growth in the upcoming fiscal years.