Piramal Pharma Limited announced its Q1 FY26 results on 28 July 2025, showing a narrowed consolidated loss of ₹81.70 crore, compared to a loss of ₹88.64 crore in Q1 FY25. This reflects an improvement of 7.83% year-on-year (YoY) in the company’s profit after tax (PAT). Revenue for the quarter stood at ₹1,933.71 crore, showing a minor decline of 0.89% YoY from ₹1,951.14 crore in Q1 FY25.
EBITDA during the quarter came in at ₹165.10 crore, representing a decrease from ₹224.03 crore in the same period last year, resulting in margins dropping from 11% to 9%. This decline was mainly due to inventory destocking in one of its large on-patent CDMO (Contract Development and Manufacturing Organization) products. Excluding this one-off impact, the company highlighted stable growth in its overseas CDMO facilities.
Segment-Wise Business Performance
1. CDMO (Contract Development and Manufacturing)
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Revenue: ₹997 crore
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Change: ~6% decline YoY
The CDMO business faced temporary headwinds due to inventory destocking in a large on-patent product. However, underlying growth in overseas facilities continued at a mid-teen rate when adjusted for the destocking effect.
2. Complex Hospital Generics (CHG)
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Revenue: ₹637 crore
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Change: ~1% growth YoY
The CHG business posted marginal growth, influenced by the timing of institutional orders. Management expects a pick-up in volumes in the upcoming quarters as hospital demand improves.
3. Consumer Healthcare (PCH)
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Revenue: ₹302 crore
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Change: ~15% growth YoY
The consumer healthcare division continued to perform strongly, supported by the growth of key brands and robust sales through e-commerce and retail channels.
The company also achieved a significant regulatory milestone, passing a USFDA inspection at its Aurora, Canada site with zero observations, continuing a strong compliance track record since 2011.
Standalone vs Consolidated Performance
The company’s standalone performance was stronger than its consolidated results:
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Revenue: ₹969.88 crore (down 8.78% YoY)
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PBT: ₹225.25 crore (up 19.5% YoY)
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PAT: ₹113.14 crore (up 32.68% YoY)
The rise in standalone profitability reflects better operational efficiency in the domestic market, particularly in consumer healthcare and hospital generics.
On a consolidated basis, although revenue was stable, margins remained under pressure due to the CDMO inventory adjustment.
Piramal Pharma Share Price Performance
On 29 July 2025, Piramal Pharma shares opened at ₹197.34 per share and later traded around ₹203.51, reflecting a modest increase from the opening price.
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1-Year Return: ~20.51%
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5-Year Return: ~3.66%
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Maximum Return: ~4.63%
The stock has shown volatility in the past due to its dependency on CDMO contracts and regulatory developments. Investors are advised to consider long-term fundamentals and market risks before taking positions.
Management Commentary and Future Outlook
The company’s leadership emphasized that Q1 FY26 performance was impacted by temporary factors in the CDMO segment. Excluding the one-time destocking, the underlying business showed resilience and growth in core areas.
Management reaffirmed its long-term goals:
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Achieve USD 2 billion revenue by FY2030
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Maintain EBITDA margins of 25%
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Deliver high-teen return on capital employed (ROCE)
Key growth drivers for the future include:
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Expansion of overseas CDMO facilities
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Scaling of consumer healthcare brands
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Institutional order growth in complex hospital generics
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Strengthening regulatory compliance and operational efficiency
Risks and Opportunities
Risks:
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Margin volatility due to CDMO order lumpiness
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Dependence on key clients and products in the CDMO segment
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Competitive pressure in consumer healthcare from larger players
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Stock valuation sensitivity given high price-to-earnings multiples
Opportunities:
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Recovery of CDMO volumes as destocking normalizes
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Growing demand in the hospital generics segment
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Digital and e-commerce-driven consumer health growth
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Enhanced credibility from regulatory compliance, which can attract new CDMO contracts
Strategic Takeaways
Q1 FY26 reflects a transitional quarter for Piramal Pharma. While consolidated numbers show pressure on margins, standalone performance demonstrates strength and operational efficiency. With a focus on long-term growth, regulatory compliance, and expansion across its three key verticals, the company is positioning itself for sustained value creation.
Investors with a long-term horizon can view Piramal Pharma as a structurally strong player in the pharmaceutical sector, while remaining cautious of near-term volatility.
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