Orchid Pharma Limited submitted its Business Responsibility and Sustainability Report (BRSR) for FY26 to the National Stock Exchange and BSE. The filing covers the financial year ended March 31, 2026.

Orchid Pharma disclosed that its core business activity, the manufacture and sales of Active Pharmaceutical Ingredients and products, accounts for 97% of the entity's turnover. The report is prepared on a standalone basis.

General Disclosures

The company, incorporated on July 1, 1992, operates from its registered office in Chengalpattu, Tamil Nadu. The paid-up capital stands at ₹50.7 crore as per the disclosures. Kapil Dayya, Company Secretary and Compliance Officer, served as the point of contact for queries regarding the report.

Reporting Scope

The BRSR does not include an external assurance provider or a specified type of assurance. The disclosures focus strictly on the listed entity's standalone performance and sustainability metrics for the period.

Orchid Pharma confirmed that its 7-ACA backward integration project is set to begin operations by March 2027. The company stated that commissioning and the first commercial batch are targeted for this timeline.

This update reinforces the strategic roadmap previously outlined, where the project aims to reach 80-100% utilization by the end of its first year. Management has indicated that 80% of the output is intended for in-house use, with the remaining 20% allocated for third-party sales. The capital expenditure for this initiative stands at ₹750 crore.

Financial Performance

The company reported a standalone net profit of ₹12 crore for Q1FY27, reversing a net loss of ₹3 crore in Q1FY26. Revenue from operations rose 15% to ₹304 crore from ₹263 crore in the corresponding period last year.

What the Numbers Show

The simultaneous rise in revenue and the transition from a net loss to a net profit suggests effective cost structure management. The revenue increase of 15% coupled with a 150% surge in EBITDA underscores financial recovery. Notably, the EBITDA margin expanded from 3% to 8%, indicating improving operating leverage as the merged entity optimizes its integrated cephalosporin platform.

Operational and Strategic Updates

Management highlighted that FY26 was challenging for the cephalosporin business, with combined revenue falling to ₹1,233 crore from ₹1,398 crore in FY25 due to volume and pricing pressures. Gross margins moderated by approximately 4 percentage points to 32% in FY26 compared to 36% in FY25. However, combined employee and other operating expenses remained broadly flat at ₹353 crore in both years.

In Q1FY27, gross margins improved by approximately 3 percentage points to 33%. The Antimicrobial Stewardship (AMS) business continues to be managed with financial discipline, with quarterly EBITDA drag reducing significantly. AMS revenue was approximately ₹5 crore in the quarter, with an EBITDA loss of around ₹50 lakh.

Pipeline and Project Timelines

Orchid Pharma provided updates on key strategic projects:

• Exblifep: In Europe, volumes grew by approximately 300% in Q3FY26, 170% in Q4FY26, and 50% in Q1FY27. Registration in South Africa is complete, with coverage across GCC markets. Discussions are advanced for South America, Mexico, Philippines, Thailand, Morocco, and Australia. The estimated 10-year value of the licensing arrangement in Russia is approximately $178 million.
• Cefiderocol: The project remains on schedule for commissioning by December 2026. Validation and initial batches are targeted for January to March 2027. Commercial launch depends on DCGI approval, potentially via a trial waiver precedent set by Cefepime-Enmetazobactam. GARDP has floated a global RFP for market access in 135 countries.
• 7-ACA Project: Commissioning and the first commercial batch are targeted by March 2027. This backward integration project aims to reach 80-100% utilization by the end of the first year, with 80% intended for in-house use and 20% for third-party sales. The capex for this project is ₹750 crore.