Piramal Pharma Limited Reports Q1FY26 Financial Performance

Piramal Pharma Limited (NSE: PPLPHARMA, BSE: 543635), a prominent global player in the pharmaceutical and health sectors, recently released its standalone and consolidated financial results for the first quarter of FY26, ending June 30, 2025. The results indicate a blend of challenges with opportunities as the company navigates a competitive market.

Financial Highlights

The company's revenue from operations was reported at ₹1,934 crores, slightly down from ₹1,951 crores in the corresponding quarter last year, representing a decrease of 1%. Notably, excluding the impacts of destocking from a major CDMO product, year-on-year revenue growth surged into the early double digits. The Consolidated EBITDA stood at ₹165 crores, showing a decline of 26% from ₹224 crores in Q1FY25, while the EBITDA margin decreased to 9% from 11% in the previous year, attributed mainly to inventory destocking although this was offset by improved profitability in overseas operations.

The net profit after tax, which factors in exceptional items, recorded a marginal improvement, standing at a loss of ₹82 crores compared to ₹89 crores over the same period last year. The ratio of net debt to EBITDA was noted at 2.6x, revealing a stable premise for financial health despite the economic environment.

Business Segment Performance

Piramal Pharma's business segments exhibited varied results during the quarter:
1. Contract Development and Manufacturing Organization (CDMO)
- The CDMO segment witnessed mid-teen growth excluding destocking impacts, led primarily by enhanced performance in international markets.
- This segment also presented improvements in profitability and cost optimization through strategic procurement and operational excellence initiatives.
- The recent closure of a USFDA inspection at the Aurora facility in Canada, without any observations, reinstated the commitment to high production standards.
- The firm is advancing on capacity expansion at its Lexington facility in the U.S., which specializes in sterile injectable products, anticipated to bolster their ADC development and manufacturing capacity over time.

2. Complex Hospital Generics (CHG)
- Margins were impacted by timing issues related to institutional orders, leading to slower growth within this division. However, management expects recovery in the latter half of the fiscal year.
- The U.S. market presented slower growth; however, some international markets showed encouraging trends, indicating potential recovery.
- New approvals, including USFDA approval for producing Sevoflurane APIs, also present pathways for growth.

3. Piramal Consumer Healthcare (PCH)
- The consumer sector demonstrated resilience, reporting an impressive 18% YoY growth driven by power brands and substantial e-commerce sales, which surged by 41% YoY. The power brands are contributing to a substantial portion of the total sales, accounting for nearly half of PCH's revenue.
- The introduction of seven new products during this period aligns with the company’s drive for innovation, bolstered by robust investments in media and promotions.

Future Outlook

Nandini Piramal, the Chairperson of Piramal Pharma Limited, emphasized resilient growth plans amidst challenges, settling a target of reaching $2 billion in revenue with a 25% EBITDA margin by FY2030. With sustainability efforts recognized—receiving an ESG rating of 61 for FY2024—Piramal Pharma is not only advancing in financial terms but is also tackling social responsibilities proactively, ensuring ethical practices underpinning its strategic developments.

As Piramal Pharma prepares to host a conference call on July 29, 2025, to discuss these results in detail, stakeholders will have the opportunity to gain insights on the performance outlook and strategic directions moving forward. Piramal Pharma’s agility in navigating complexities within the pharmaceutical sector reinforces its commitment to sustained growth and industry excellence.