Piramal Pharma Limited (PPL) is part of the Piramal group of companies. The company operates through 3 major segments:
(1) Contract development and manufacturing organisations (CDMO),
(2) Complex hospital generics (critical care), and
(3) consumer healthcare (OTC).
Company entered Pharma space back in 1988 with acquisition of Nicholas Laboratories and grew through a series of Mergers & Acquisitions and various organic initiatives. In 2010 the Domestic formulations business was sold to Abott for $3.7 billion and Diagnostic Services was sold to Super Religare Laboratories (SRL). Presenting below are its Q1 FY26 earnings results.
Q1 FY26 Earnings Results
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Revenue from Operations: ₹1,934 crores, down 0.9% YoY (Q1 FY25: ₹1,951 crores) and down 22.7% QoQ (Q4 FY25: ₹2,578.74 crores).
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Total Income: ₹1,992.11 crores.
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EBITDA: ₹165 crores, down 26% YoY (Q1 FY25: ₹224 crores); margin at 9% vs 11% last year, impacted by destocking in CDMO business.
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Profit After Tax (PAT): ₹-81.7 crores, loss narrowed 8% YoY (Q1 FY25: ₹-88.6 crores), but swung negative from Q4 FY25 profit of ₹101.27 crores.
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EPS: ₹-0.61 (Q1 FY25: ₹-0.70; Q4 FY25: ₹0.80).
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Segmental Performance:
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CDMO: ₹997 crores, down 6% YoY; excluding destocking, mid-teen growth reported.
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CHG (Complex Hospital Generics): ₹637 crores, up 1% YoY; growth expected to accelerate through rest of FY26.
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PCH (Consumer Healthcare): ₹302 crores, up 15% YoY, driven by power brands and e-commerce.
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Net-Debt to EBITDA: 2.6x.
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USFDA Aurora (Canada) Inspection: Closed with zero observations, maintaining ‘Zero OAIs’ since 2011.
Key Management Commentary & Strategic Highlights
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Management acknowledged near-term pressures due to inventory destocking in a major CDMO product, but highlighted underlying growth in CDMO (excluding destocking), improved overseas margins, and resilience in Consumer Healthcare.
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Growth in Complex Hospital Generics is expected to accelerate in ensuing quarters as institutional orders are timed for the latter half of FY26.
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Consumer business performed in line with expectations, underpinned by strong brands and digital/e-commerce strategy.
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Management reiterates FY2030 goals: $2 billion revenue, 25% EBITDA margin, high-teen ROCE, and continued investments in sustainability and quality.
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Chairperson Nandini Piramal emphasizes confidence in long-term strategy despite short-term volatility and expects stronger growth across segments as FY26 progresses.
Q4 FY25 Earnings Results
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Revenue from Operations: ₹2,754 crores.
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PAT: ₹154 crores profit.
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EPS: ₹1.16.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.