Piramal Pharma Limited announced its financial results for the second quarter of fiscal year 2026, revealing a significant impact from inventory destocking by a key customer.

Financial Highlights

• Revenue: Consolidated revenue from operations declined 21% year-over-year to ₹2,044.00 crores in Q2FY26.
• EBITDA: Margins stood at 11% for the quarter, down from 18% in Q2FY25.
• Net Debt: Reduced by ₹228.00 crores to ₹3,971.00 crores compared to FY25, maintaining a net debt to EBITDA ratio below 3x.

Segment Performance

Key Business Highlights

CDMO (Contract Development and Manufacturing Organization)

• Revenue decline primarily attributed to inventory destocking in one large on-patent commercial product.
• Inconsistent recovery in US biopharma funding and global trade policy uncertainties affected order inflows.
• Seeing early signs of improvement with funding uptick in September and October 2025.

Complex Hospital Generics

• Maintained leadership in the US Sevoflurane market with a 45% value market share.
• Working on obtaining regulatory approvals for Sevoflurane in ex-US markets from the India plant.

India Consumer Healthcare

• Delivered healthy mid-teen growth.
• Power brands grew 20% YoY, contributing 51% to total consumer healthcare sales.
• E-commerce sales grew over 40% YoY, contributing about 24% to consumer healthcare sales.

Management Commentary

Nandini Piramal, Chairperson of Piramal Pharma Limited, stated, "YoY growth in the CDMO Business was primarily impacted by inventory destocking in one large on-patent commercial product. Inconsistent recovery in US biopharma funding along with uncertainties on global trade policies led to adverse impact on order inflows and customer decision making during H1FY26. However, in the months of September and October 2025, we have seen a significant pick up in biopharma funding, which if sustains, should lend impetus to increased RFPs and orders going forward."

Outlook

The company expects better revenue and EBITDA performance going forward, driven by:

• Significant uptick in biopharma funding observed in September and October 2025.
• Increasing RFPs/RFIs for onshore manufacturing facilities and differentiated capabilities.
• Good inflow of commercial orders.
• Enhancement in Business Development team to adapt to market dynamics.

Piramal Pharma continues to focus on cost optimization and operational excellence to partially offset the impact on EBITDA. The company maintains a positive outlook, particularly noting strong customer interest for its US sites and onshore offerings.

Piramal Pharma , a key player in the pharmaceutical industry, has announced ambitious growth projections for its Contract Research, Development and Manufacturing Organization (CRDMO) segment. The company expects to capitalize on the growing demand in this sector, forecasting a robust compound annual growth rate (CAGR) of approximately 19% for its CRDMO sales over the fiscal years 2026 to 2028.

Growth Projections

Piramal Pharma's optimistic outlook is based on favorable market conditions in the CRDMO segment. The company's projections can be summarized as follows:

Market Positioning

The company's forecast suggests a strategic focus on the CRDMO sector, which has been experiencing significant growth globally. By positioning itself to benefit from these market conditions, Piramal Pharma aims to strengthen its foothold in this lucrative segment of the pharmaceutical industry.

Industry Implications

The projected growth in Piramal Pharma's CRDMO sales may indicate broader trends in the pharmaceutical outsourcing market. As companies increasingly rely on contract research and manufacturing services, firms with strong CRDMO capabilities, like Piramal Pharma, may be well-positioned to capture a larger market share.

This forecast provides valuable insights into the company's strategic direction and the potential trajectory of the CRDMO sector in the coming years. Investors and industry observers will likely be watching closely to see how these projections materialize and impact the company's overall performance in the medium term.