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Piramal Pharma Limited Reports Q3 and 9M Results for FY26: Key Insights and Future Outlook

Overview of Piramal Pharma Limited's Financial Performance

On January 30, 2026, Piramal Pharma Limited (NSE: PPLPHARMA, BSE: 543635), a global leader in the pharmaceutical and wellness industry, announced its financial results for the third quarter (Q3) and the first nine months of FY26. Despite facing several obstacles, the company showcased resilience and a promising outlook for future growth.

Financial Highlights

The financial results for Q3 FY26, reflecting a challenging business environment, revealed a decline in revenue when compared to the previous year.

Metric	Q3 FY26 (INR Billion)	Q3 FY25 (INR Billion)	YoY Change	9M FY26 (INR Billion)	9M FY25 (INR Billion)	YoY Change
------	------	----	---	-----	-----	-----
Revenue from Operations	2,140	2,204	-3%	6,117	6,397	-4%
EBITDA	239	350	-32%	628	977	-36%
Profit After Tax (PAT)	(136)	4	NM	(317)	(62)	NM

Analysis of Key Metrics

- Revenue Decline: The revenue decline can be attributed to a significant inventory destocking by a key client, a slower order intake in the first half of FY26, and global trade policy uncertainties.
- EBITDA Performance: The EBITDA margin dropped to 11% from the previous year’s 16%. This decline is primarily due to reduced sales, although cost optimization efforts have mitigated some of the impacts.
- PAT Dynamics: The profit after tax witnessed a notable decrease, reflecting the operational challenges faced by the company during the current fiscal year.

Business Challenges and Recovery Signs

Despite a rough start to the fiscal year, the latter half has shown promising signs of recovery. The resurgence in biopharma funding and the increase in requests for proposals (RFPs) indicate an upward trend in order volumes, especially in the Contract Development and Manufacturing Organization (CDMO) sector. Key factors contributing to this optimism include:

- Biopharma Funding Recovery: In the latter half of calendar year 2025, biopharma funding saw a significant recovery, nearly doubling compared to the first half.
- Increased RFPs: Since October 2025, there has been a marked increase in the number of tenders for CDMO services, suggesting renewed confidence in the market.

Strategic Investments

Piramal Pharma is also making strategic investments aimed at bolstering its operational capabilities. A notable investment of USD 90 million is underway to expand facilities in Lexington and Riverview, reflecting strong customer interest and growth potential in these regions.

Key Business Developments

1. Acquisition of Kenalog®: Piramal Pharma acquired the injectable product Kenalog®, enhancing its portfolio in the Complex Hospital Generics (CHG) segment. This acquisition is expected to yield EBITDA margins in line with current CHG levels.
2. Expansion of Consumer Healthcare: The consumer healthcare division reported significant growth, largely driven by the successful launches of new products and robust sales performance in key markets.
3. Continuous Quality Assurance: Consistent third-party inspections have maintained Piramal's strong quality assurance record, which is vital for sustaining client trust.

Future Outlook

Nandini Piramal, Chairperson of Piramal Pharma, expressed optimism about the long-term growth trajectory of the company. Despite the hurdles encountered in FY26, she noted that there are signs of recovery that could lead to a robust increase in orders and demand. The upcoming fourth quarter, historically the strongest for the company, is anticipated to surpass previous performance metrics.

In conclusion, while the challenges in FY26 have tested Piramal Pharma's strategies, the emerging signs of recovery and strategic investments signal a positive outlook for the future. The company remains committed to enhancing its operational capabilities and expanding its market presence as it navigates through an evolving pharmaceutical landscape.