Orchid Pharma is a pharmaceutical company engaged in the development and manufacture of active pharmaceutical ingredients (APIs) and finished dosage forms. It is also engaged in research of new drugs.
Q2 FY26 Earnings Results
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Revenue from Operations: ₹193.52 crore, down 13.1% YoY but up 11.9% QoQ
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EBITDA: ₹-1.48 crore, down sharply from ₹14.17 crore in Q1 FY26 and ₹30.34 crore in Q2 FY25; EBITDA margin -0.76%
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Profit After Tax (PAT): Net loss of ₹5.72 crore, compared to PAT of ₹14.91 crore in Q1 FY26 and ₹27.24 crore in Q2 FY25
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Gross profit margin declined drastically to 2.87% from 12.93% QoQ and 15.51% YoY
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Other income: ₹10.77 crore, marginally down from ₹11.45 crore QoQ
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Operating profit to interest coverage ratio at -0.40 times, signaling financial stress
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Average ROE 4.68%, ROCE -0.71% indicating weak capital efficiency
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Working capital pressures and higher raw material costs contributed to margin compression
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Company is undergoing capacity expansion with a new API plant in Chennai to increase output by 25%
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Plans include pipeline of 8 new molecules and focus on export market expansion
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Targeting 13% revenue growth in FY26 but near-term earnings remain challenged
Management Commentary & Strategic Insights
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Management acknowledges challenging demand environment and sharp margin contraction
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Focus on cost control, capacity expansion, and new product launches for turnaround
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Emphasis on long-term profitability through operational efficiencies and portfolio expansion
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Monitoring improved revenue trends and working capital management expected in coming quarters
Q1 FY26 Earnings Results
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Revenue: ₹172.93 crore, down 29.3% YoY
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EBITDA: ₹14.17 crore, margin 8.19%
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PAT: ₹14.91 crore
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Historically volatile earnings with recent quarters showing upward volatility but operational challenges
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.