Quarterly loss incurred by Piramal Pharma amounts to ₹82 crore
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Piramal Pharma, based in Mumbai, India, reported a consolidated net loss of Rs 82 crore in Q1 FY2026 (April-June 2025), marking a sequential deterioration in profitability despite some growth in certain business segments.
The revenue for Q1 FY2026 was Rs 1,934 crore, slightly down 0.89% year-on-year from Rs 1,951 crore and down nearly 30% sequentially from the previous quarter. EBITDA for the quarter nearly halved compared to last year's Q1 to Rs 106.7 crore, with margins compressing to 5.5% from 10.5% year-on-year and 26.9% sequentially.
The CDMO (Contract Development and Manufacturing Organisation) business revenue declined by 6% year-on-year to Rs 997 crore due to destocking of a large on-patent commercial product. However, adjusted for this impact, the CDMO segment showed mid-teen percentage revenue growth and improved EBITDA margins, especially overseas.
The Complex Hospital Generics (CHG) business grew slightly by 1% to Rs 637 crore but experienced slower growth due to the timing of institutional orders. Nandini Piramal, Chairperson of Piramal Pharma, expects growth in this business to pick up for the remaining part of the year.
Despite the weak Q1, management maintains its FY26 guidance and aims for a long-term revenue target of USD 2 billion by FY2030 with a 25% margin. Motilal Oswal values Piramal Pharma with a target price of Rs 240, indicating confidence in a business recovery and growth in coming quarters.
In summary, Piramal Pharma's Q1 FY2026 results show a net loss but with ongoing underlying growth in key areas (CDMO excluding destocking impact and CHG). The company is facing short-term challenges but remains optimistic for recovery and long-term growth, in line with industry trends of complex pharmaceutical manufacturing and hospital generics.
[1] Business Standard [2] Economic Times [3] Moneycontrol [4] Livemint
- Despite the current setbacks, financial experts predict a recovery and growth for Piramal Pharma in the coming quarters, as evidenced by the target price of Rs 240 by Motilal Oswal.
- The live updates on business news platforms like Business Standard, Economic Times, Moneycontrol, and Livemint will likely continue to focus on the performance of Piramal Pharma as it strives towards its long-term goal of reaching a revenue target of USD 2 billion by FY2030.
- As the Q1 FY2026 results reveal, the energy of the economy, particularly in the pharmaceutical sector, is influenced by a variety of factors, including business strategies, technology, politics, and even crime and justice.
- In the world of personal-finance and investing, many are watching Piramal Pharma closely, as its success or failure could impact stock markets and the broader banking and finance industries.
- Technology has played a crucial role in Piramal Pharma's business segments, such as its CDMO (Contract Development and Manufacturing Organisation), where improved EBITDA margins, especially overseas, were seen.
- The company's global expansion, coupled with a focus on complex pharmaceutical manufacturing and hospital generics, positions it well to adapt to shifts in the wider economy and markets.
- As the fate of Piramal Pharma unfolds, it offers insight into the broader picture of the Indian economy and the pharmaceutical industry, which are closely linked to the country's general news and politics.
- The challenging financial performance in Q1 FY2026 demonstrates the high-stakes nature of investing, where short-term setbacks can lead to long-term gains, provided a company is able to adapt and persevere.
- As each quarter unfolds, the focus will remain on the key areas driving growth for Piramal Pharma: its CDMO business (excluding the destocking impact) and the Complex Hospital Generics business, which is expected to pick up later this year.
