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Piramal Pharma Limited Q2 and H1 FY26 Financial Results

On November 5, 2025, Piramal Pharma Limited, a prominent player in the global pharmaceutical and wellness sector, unveiled its financial results for the second quarter (Q2) and the first half (H1) of fiscal year 2026. The release highlighted both challenges faced and the company’s strategies moving forward, reflecting a dynamic market landscape.

Financial Overview

Key Financial Highlights

The consolidated financial results of Piramal Pharma reported a revenue of ₹2,044 crores for Q2FY26, a decline of 9% compared to ₹2,242 crores in Q2FY25. Similarly, for the half-year ending September 30, 2025, the revenue stood at ₹3,977 crores, marking a 5% decrease from ₹4,193 crores in the previous fiscal year. This downturn can be attributed predominantly to inventory destocking from a major Contract Development and Manufacturing Organization (CDMO) client.

Profitability Analysis

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q2FY26 recorded ₹224 crores, a notable drop of 44% year-on-year, with a corresponding EBITDA margin of 11%. In the first half of FY26, EBITDA fell to ₹389 crores, yielding a margin of 10%. These figures illustrate the financial strain the company encountered due to reduced operational revenues despite stabilizing efforts on costs and operational efficiency.

Net profit after tax showed an unfavorable shift of ₹99 crores in Q2FY26, transitioning from a profit of ₹23 crores the previous year. In broader terms, the net loss noted for H1FY26 was ₹181 crores, a significant leap from a loss of ₹66 crores in the same period last year.

Business Segment Insights

CDMO Impact

The CDMO segment experienced a significant year-on-year decline due to customer inventory adjustments in one large order, alongside the inconsistent recovery in US biopharma funding and global trade uncertainties that have negatively affected order inflows. On a brighter note, September and October of 2025 showed signs of recovery in biopharma funding.

Complex Hospital Generics (CHG) Performance

Piramal continues to solidify its leadership in the US Sevoflurane market with a rise to a 45% market share. Regulatory approvals for the ex-US market are ongoing from their production facility in India, which remains a focus area.

Consumer Healthcare Growth

The Consumer Healthcare segment, however, reported robust growth, with key brands like Lacto Calamine and Little's showing a combined growth rate of 20% year-on-year. The e-commerce channel has proven fruitful, contributing to approximately 24% of overall sales due to a remarkable 40% rise in online transactions.

Strategic Focus Going Forward

Chairperson Nandini Piramal expressed optimism about potential shifts in business dynamics, citing renewed customer interest in onshore offerings and increased requests for proposals (RFPs) as indications of a brighter economic forecast. The company plans to leverage its investments in overseas facilities to enhance operational outputs further, alongside ensuring client commitments through robust supply chain management.

Moreover, the company has introduced its fourth Annual Sustainability Report, themed 'Innovating Responsibly. Growing Sustainably,' which underscores Piramal Pharma's dedication to responsible growth and accountability.

Conclusion

As Piramal Pharma navigates through fiscal challenges and anticipates future growth, the insights drawn from Q2 and H1 FY26 results will serve as a guide in making strategic decisions. The leadership is cautiously optimistic about renewing market opportunities and maintaining operational resilience as they aim for recovery in the upcoming quarters. Stakeholders and investors can tune into the upcoming conference call on November 6, 2025, for a detailed discussion about these results with the management team.

For detailed financial insights and operational strategies, continue following Piramal Pharma as it charts its course forward in the evolving pharmaceutical landscape.