Piramal Pharma Q2FY26: Revenue Falls 9% YoY, Reports ₹99 Crore Loss Amid CDMO Weakness

Mumbai, November 6, 2025: Piramal Pharma Limited (NSE: PPLPHARMA, BSE: 543635) today announced its financial results for the quarter ended September 30, 2025 (Q2FY26). The consolidated net loss for the quarter was ₹99 crore as compared to a consolidated net profit of ₹23 crore in the corresponding period of the previous year. Revenue from operations was down 9% YoY at ₹2,044 crore. The decline in revenue for Piramal Pharma was primarily due to the destocking activities of one of its key CDMO customers.

Financial Overview

Piramal Pharma’s Q2FY26 EBITDA fell 44% YoY to ₹224 crore due to lower capacity utilization and price pressure in the CDMO segment. However, a sequential recovery was noticeable, with EBITDA growing 36% QoQ from ₹165 crore in Q1FY26. EBITDA margin was 11% against 18% a year ago. Revenue for the first half of the fiscal year declined 5% YoY to ₹3,977 crore, while EBITDA saw a 38% drop to ₹389 crore. The net loss for H1FY26 was ₹181 crore.

Segmental Performance

The CDMO segment, which accounts for over 50% of the total revenue, declined by 21% YoY to ₹1,044 crore, the key reason being lower demand from large global clients and slow biopharma funding in the US. However, management confirmed that RFP activity was much higher in the closing quarter, indicating a slow but steady recovery of demand.

The CHG segment remained stable, with revenues of ₹644 crore, riding on strong positions in key molecules such as Sevoflurane (US market share 45%) and Intrathecal Baclofen (75% share). Supply chain normalization, coupled with new product launches, should drive growth during the second half of FY26.

ICH was the largest contributor to the company’s growth, with revenue increasing 15% to ₹319 crore. Over half of the segment’s revenues were contributed by the company’s top power brands, comprising: Lacto Calamine, Little’s, and the i-range. E-commerce sales were up 40% YoY – and now constitute 24% of total consumer sales.

Key Business Developments

As part of the CDMO business, Piramal Pharma partnered with NewAmsterdam Pharma via a strategic joint investment for the commercial production of Obicetrapib and Ezetimibe at its Sellersville, US facility. The development aligns with the company’s objective of developing a more sustainable manufacturing ecosystem and further expanding its specialty pharma portfolio.

The company increased brand visibility and digital engagement in Consumer Healthcare by intensifying marketing activities; the main goal was that advertisement expenditure made up 12% of the segment revenue.

Balance Sheet and Financial Position

As of the end of September 2025, Piramal Pharma had an equity base of ₹8,073 crore with net assets of ₹12,045 crore. Net debt decreased to ₹3,971 crore from ₹4,199 crore as of the end of March 2025, due to better working capital management and disciplined capital expenditure by the company.

Management Commentary

Nandini Piramal, Chairperson of Piramal Pharma, said this revenue decline was largely due to a one-time inventory adjustment by a big CDMO customer. She further pointed out that recovery in global biopharma funding and new interest in onshore manufacturing are some of the positive signs for the second half of FY26. Besides, Piramal said the firm is rapidly upgrading its hospital generics portfolio and expanding its consumer health line with innovation-led products.

Sustainability and Outlook

Introducing its fourth annual sustainability report, titled “Innovating Responsibly. Growing Sustainably.”, Piramal Pharma has reconfirmed its ESG commitment by achieving a 10.5% reduction in Scope 1 and 2 emissions, along with ensuring zero hazardous waste to landfill.

Management now expects a gradual recovery in the biopharma sector, easing of supply constraints, and continued strength in consumer brands, which should drive accelerating order inflows in H2FY26. The company remains focused on operational efficiency, cost optimization, and strengthening its innovation pipeline to return to profitability.

Stock Performance

The share price of Piramal Pharma traded 2.09% higher at ₹204.60 as of 10:34 am IST on November 6, 2025. The stock has experienced notable volatility in recent sessions, but investor sentiment has improved following the company’s cost-control measures and signs of sequential earnings recovery

REF: https://nsearchives.nseindia.com/corporate/Priyankamehta_05112025210135_PRandIRpresentation_final.pdf

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