Orchid Pharma Limited has submitted its monitoring agency report for the quarter ended September 30, 2025, detailing the utilization of Rs. 400 crore raised through a Qualified Institutional Placement (QIP). The report, prepared by CARE Ratings Limited, highlights both progress and challenges in the company's key projects.

Revised Fund Allocation

Following shareholder approval at the Annual General Meeting on September 20, 2025, Orchid Pharma has revised the allocation of QIP proceeds among its project objectives. The revised allocation is as follows:

Project Implementation Status

Jammu Manufacturing Facility

The company has utilized Rs. 73.02 crore out of the allocated Rs. 135 crore for the Jammu project. Land acquisition challenges have been cited as the primary cause of delay. Out of the identified 203.8 Kanal (25.475 acres) of land, registration for 164.50 Kanal has been completed. The company expects to complete the registration of the remaining land by December 2025.

Despite the delays, Orchid Pharma reports progress in construction activities:

• Boundary construction has been completed
• Major building construction is in an advanced stage
• Equipment installation has commenced

Alathur API Facility

The project for setting up a new API facility block in Alathur, Tamil Nadu, has seen minimal progress. Only Rs. 0.36 crore has been utilized out of the revised allocation. The company attributes this delay to the project's dependency on the Jammu 7ACA project.

Fund Utilization and Deployment

As of September 30, 2025, Orchid Pharma has utilized Rs. 278.10 crore of the QIP proceeds. The unutilized amount of Rs. 116.44 crore has been deployed as follows:

The monitoring agency report indicates that there have been no deviations from the stated objectives of the QIP. However, the implementation delays in both the Jammu and Alathur projects are noteworthy, with the extent of delays not precisely ascertainable at this point.

Orchid Pharma's management has stated that the delays in the Jammu project are primarily due to the complexities involved in land acquisition from multiple farmers and the required Change of Land Use (CLU) processes. The company is working with a land aggregator to address these challenges.

Orchid Pharma Limited , a prominent player in the pharmaceutical sector, has unveiled plans for capacity expansion and new product launches, aiming for a 13% year-on-year revenue growth in FY26. The company is focusing on strengthening its position in the Cephalosporin and Carbapenem APIs (Active Pharmaceutical Ingredients) segments.

Expansion and Growth Initiatives

Orchid Pharma is commissioning a new plant in Chennai, which is expected to boost API output by 25%. This strategic move aligns with the company's goal to enhance its manufacturing capabilities and meet growing market demands.

The company is also placing significant emphasis on expanding its presence in export markets. This push for international growth is complemented by efforts towards backward integration, which could potentially lead to improved cost efficiencies and supply chain control.

R&D and Product Pipeline

Innovation remains a key focus for Orchid Pharma, with the company's R&D pipeline including 8 new molecules. This robust research and development initiative underscores the company's commitment to expanding its product portfolio and staying competitive in the rapidly evolving pharmaceutical landscape.

Financial Outlook

For the fiscal year 2026-27, Orchid Pharma projects volume-led growth coupled with higher EBITDA margins. This outlook suggests the company's confidence in its strategic initiatives and market positioning.

Recent Financial Performance

The company's financial results for the quarter ended September 30, 2025, provide context to its growth trajectory:

While the recent quarter shows a decline in revenue and profitability compared to the same period last year, the company's forward-looking strategies and investments in capacity and R&D indicate a focus on long-term growth and market expansion.

Conclusion

Orchid Pharma's plans for capacity expansion, coupled with its focus on new product launches and export market penetration, position the company for potential growth in the coming years. The projected 13% revenue growth for FY26 reflects the company's optimistic outlook, despite the challenges evident in its recent quarterly results. Investors and industry observers will be keenly watching how these strategic initiatives translate into financial performance in the upcoming quarters.