The Chairman of Piramal Pharma, Nandini Piramal, stated that the company plans to sustain mid-decade revenue growth in the fiscal year 2027 and achieve a significant improvement in profitability. The company's priority is organic expansion rather than acquisitions.
First Quarter Financial Results
The company demonstrated a strong start to the fiscal year, noting a 17% year-on-year growth in consolidated revenue, reaching INR 2,270 crore in the quarter from April to June. Piramal noted that the operating leverage, driven by higher capacity utilization and improved execution, will continue to support margins.
During this quarter, the company increased its EBITDA by 72%, reaching INR 285 crore. Consequently, the EBITDA margin expanded by 400 basis points to 12.5%, compared to 8.5% the previous year. Despite increased depreciation and tax expenses, Piramal Pharma reported a net loss of INR 69 crore for the quarter, which is better than the INR 102 crore loss the previous year, excluding exceptional items.
Growth Across Business Segments
Piramal reported that all three business segments—Contract Development and Manufacturing Organization (CDMO), Complex Hospital Generics (CHG), and Consumer Healthcare—showed growth in the mid-to-upper part of the decade during the quarter. Management maintains the forecast for mid-decade revenue growth for the year, expecting EBITDA to grow faster than revenue, and net profit to improve significantly.
The CDMO business, which accounts for over half of the company's revenue, grew by 19%, reaching INR 1,187 crore. Piramal attributed this success to improved funding in the biopharmaceutical sector, broad growth both in India and abroad, and strengthened commercial execution following the expansion of the business development team. She added that most of the company's clients are biotechnology companies from the US, and demand in the US biopharma sector remains favorable as of October.
Technology and Market Developments
Despite strengthening demand, Piramal noted that customer decision-making timelines remain lengthy. Regarding new modalities such as Antibody-Drug Conjugates (ADC) and peptides, growth was uniform rather than concentrated in one segment. The company recently launched a commercial line of payload linkers at its Riverview facility in the US and continues work on expanding sterile injectable capacity in Lexington, expected to be operational by the end of 2027.
For peptides, the company is focused on contract manufacturing rather than large GLP-1 opportunities, as it currently lacks the scale to undertake large-scale work. Meanwhile, the peptide facility in Navi Mumbai shows healthy demand for niche peptide molecules.
Strategy and Risks
Despite improving profitability, Piramal emphasized that the company is not pursuing active acquisitions, focusing instead on organic growth and the expansion of new sites. In the complex hospital generics business, commercial supply of the drug Kenalog is expected to begin from the second quarter of the fiscal year 2027 as regulatory approvals transition across different markets. Price pressure persists in the US generics market, but the company has managed to maintain market share and margins.
Commenting on potential tariff risks following recent statements by US President Donald Trump, Piramal explained that the company's core products are largely protected because both Active Pharmaceutical Ingredients (APIs) and finished dosage forms are manufactured in the US, although some raw material components still originate from India and China.
