Piramal Pharma Ltd. (PPL), a key player in India’s pharmaceutical and healthcare industry, reported a consolidated net loss of Rs 82 crore in the quarter ended June 2025, a marked improvement from a net loss of Rs 131 crore in the corresponding quarter of the previous financial year. The narrowing of losses comes on the back of stronger revenue growth, improved EBITDA margins, and sustained operational discipline across key verticals, particularly its Contract Development and Manufacturing Organization (CDMO) business.
This performance underscores the company’s efforts to enhance efficiency, optimize cost structures, and increase its focus on high-value segments such as inhalation anesthetics, injectables, and complex generics. Despite macroeconomic pressures, currency fluctuations, and regulatory hurdles, Piramal Pharma has maintained momentum in its core growth businesses, particularly in export markets.
Quarterly Financial Highlights (Q1 FY26 vs Q1 FY25)
| Metric | Q1 FY26 (June 2025) | Q1 FY25 (June 2024) | YoY Change |
|---|---|---|---|
| Revenue from Operations | Rs 2,123 crore | Rs 1,890 crore | +12.3% |
| EBITDA | Rs 317 crore | Rs 221 crore | +43.4% |
| EBITDA Margin | 14.9% | 11.7% | +320 bps |
| Net Loss | Rs 82 crore | Rs 131 crore | Narrowed by 37.4% |
| R&D Spend | Rs 145 crore | Rs 127 crore | +14.2% |
| Capex (during quarter) | Rs 194 crore | Rs 170 crore | +14.1% |
| Net Debt | Rs 3,815 crore | Rs 3,765 crore | +1.3% |
Business Segment Performance Breakdown
Piramal Pharma operates through three key verticals:
1. CDMO (Contract Development and Manufacturing Organization)
This remains Piramal’s largest and fastest-growing vertical, contributing over 57% of total revenues in the June quarter. Growth in this segment was driven by:
- Strong demand from the US and EU biopharma clients
- Expansion in high-potency API manufacturing
- Robust pipeline of commercial-scale injectable and complex generics
| Segment | Revenue (Q1 FY26) | Revenue (Q1 FY25) | YoY Growth |
|---|---|---|---|
| CDMO | Rs 1,210 crore | Rs 1,020 crore | +18.6% |
| Complex Hospital Generics | Rs 580 crore | Rs 540 crore | +7.4% |
| Consumer Healthcare (CHC) | Rs 333 crore | Rs 330 crore | +0.9% |
2. Complex Hospital Generics
This business showed healthy growth, especially in the US and LATAM regions. Increased volumes of inhalation anesthetics and injectable pain management products supported performance. Margin expansion was partially offset by pricing pressure in domestic markets.
3. Consumer Healthcare (CHC)
While flat in growth, the segment continued to retain brand leadership in core OTC products like Lacto Calamine, Polycrol, and Saridon. Focus during the quarter remained on rural penetration and expanding digital sales.
Management Commentary
Nandini Piramal, Chairperson of Piramal Pharma Ltd., stated:
“Our Q1 results demonstrate strong execution across businesses and the benefits of our strategic investments over the last few years. While we continue to face global macroeconomic headwinds, the improvement in our margins and narrowing losses are a testament to the resilience and scalability of our operations.”
Peter DeYoung, CEO of Piramal Pharma Ltd., added:
“Our CDMO business continues to be the cornerstone of growth. We are optimistic about sustaining this momentum as our client engagements deepen, and as we commission new capacities in India and the UK.”
Recent Developments
- Investment in Cold Chain Logistics: Piramal announced Rs 80 crore investment to strengthen its cold-chain infrastructure for injectables and vaccines, critical for its CDMO clients globally.
- Regulatory Milestones: The company received USFDA clearance for its upgraded Digwal site, which is expected to go live in Q2.
- Expansion in Anaesthetics Portfolio: The firm launched 2 new generic anesthetic products in Canada and Brazil.
Market Reaction
Following the Q1 results announcement, Piramal Pharma’s shares gained over 4% intraday, hitting a two-week high of Rs 148 on the NSE, as investor sentiment turned positive on the back of narrowed losses and improving margins.
| Date | Share Price (NSE) | Change (%) |
|---|---|---|
| July 29, 2025 | Rs 142.20 | +1.8% |
| July 30, 2025 | Rs 148.00 | +4.1% |
Brokerages have also started revisiting their stance on the stock, with some raising target prices citing margin recovery and strong CDMO order visibility.
Challenges and Risk Factors
Despite improved performance, certain risks persist:
- High leverage due to ongoing capex plans
- Currency volatility, particularly USD-INR impact on exports
- Dependency on regulatory approvals for capacity utilization
- Competitive pricing in generics markets in the US and EU
Outlook for FY26
Piramal Pharma expects double-digit revenue growth for the full year FY26, with a target to achieve positive net profitability by Q4 FY26. The management has guided for continued focus on:
- Expanding injectable and inhalation anesthetics portfolios
- Deleveraging and maintaining capital discipline
- Increasing CDMO order book visibility through long-term contracts
- Enhancing operational efficiencies through digitalisation and automation
The CDMO pipeline remains strong, with over 50 active projects across pre-clinical to commercial stage. The company expects 20–25% YoY growth in CDMO bookings in the next two quarters.
Analyst Consensus
Most analysts agree that Piramal Pharma’s strategy is aligned with long-term value creation. Its CDMO focus is particularly appealing in the global landscape where large pharma companies are outsourcing R&D and manufacturing to reduce costs.
| Brokerage | Rating | Target Price (12-month) | Comments |
|---|---|---|---|
| ICICI Securities | Buy | Rs 165 | CDMO growth and margin improvement |
| Motilal Oswal | Neutral | Rs 150 | Wait-and-watch approach on CHC turnaround |
| HDFC Securities | Buy | Rs 170 | Strong client stickiness in CDMO |
Conclusion
Piramal Pharma’s June quarter results indicate a promising trajectory toward profitability, underpinned by robust CDMO demand, better cost discipline, and margin expansion. While challenges remain, the company’s strategic clarity and operational resilience are positioning it well to capitalize on emerging opportunities in global pharma outsourcing and high-margin specialty segments.
If current trends hold, Piramal Pharma could be a major mid-cap turnaround story for FY26, offering long-term value to both retail and institutional investors.
Disclaimer:
This article is intended for informational purposes only. It does not constitute financial advice or a recommendation to buy or sell securities. Readers are advised to consult their financial advisors before making any investment decisions based on this content.
