Earnings Review
Piramal Pharma posts surprise profit in Q2; margin expands
This story was originally published at 23:41 IST on 27 October 2026
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--Piramal Pharma Jul-Sept consol net profit INR 55.8 mln
--Analysts saw Piramal Pharma Jul-Sept consol net loss at INR 717.40 mln
--Piramal Pharma Jul-Sept consol revenue INR 26.17 bln
--Analysts saw Piramal Pharma Jul-Sept consol net revenue at INR 23.27 bln
--Piramal Pharma Q2 consol PAT INR 55.8 mln vs loss INR 992.2 mln yr ago
--Piramal Pharma Jul-Sept consol revenue INR 26.2 bln vs INR 20.4 bln yr ago
--Piramal Pharma Apr-Sept consol loss INR 638.00 mln vs loss INR 1.81 bln
--Piramal Pharma Apr-Sept consol revenue INR 48.87 bln vs INR 39.77 bln
By Gunjan Rajput
MUMBAI – Piramal Pharma Ltd. Tuesday posted a surprise net profit for the September quarter as sales grew much faster than expenses. Analysts had expected the company to report a net loss for the sixth consecutive quarter. Both the bottom line and top line came in above the Street's estimates.
The pharmaceutical company reported a consolidated net profit of INR 55.8 million for the September quarter, compared with a net loss of INR 992.2 million a year ago. Analysts had estimated a net loss of INR 717.4 million for the quarter.
The Mumbai-headquartered company's revenue from operations rose over 28% year-on-year to INR 26.17 billion, beating analysts' estimate of INR 23.27 billion by a wide margin. Total income increased nearly 26% on year to INR 26.53 billion.
Its expenses rose over 19% on year to INR 25.89 billion. The earnings before interest, taxes, depreciation, and amortisation increased 72% on year to INR 3.85 billion from INR 2.24 billion. The EBITDA margin expanded to 14.7% from 11.0% a year ago, driven by higher capacity utilisation, operating leverage, disciplined execution, and sustained cost optimisation initiatives.
Revenue growth was broad-based across Piramal Pharma's three businesses. The contract development and manufacturing organisation business reported a 36% year-on-year increase in revenues to INR 14.24 billion, while revenues from complex hospital generics rose 32% to INR 8.49 billion. Consumer healthcare revenues increased 13% to INR 3.59 billion.
CDMO
The contract development and manufacturing business led growth during the quarter, supported by healthy commercial demand, improved execution, and disciplined cost management. India and North America led performance across the company's network. The company added 22 new customers during the first half of the financial year 2026-27 (Apr-Mar), while its phase three development pipeline increased to 28 molecules from 25 as of March 2026. The expansion at its Lexington facility remains on track and is expected to strengthen sterile fill-finish capabilities, completing its integrated antibody-drug conjugate offering. The company also commissioned a new microbiology laboratory at the site, according to a press release.
COMPLEX HOSPITAL GENERICS
Inhalation anaesthesia sales in markets outside the US supported growth, while the integration of Kenalog contributed to quarterly revenues. The company expects Kenalog to be an important growth driver for the rest of FY27. "Our CHG business complemented this momentum with 24% growth, supported by inhalation anaesthesia sales in ex-US markets and the integration of Kenalog, while Consumer Healthcare continued to deliver steady 14% growth through the strong performance of Power Brands and e-commerce," said Chairman Nandini Piramal in the press release.
CONSUMER HEALTHCARE
Power Brands grew 21% on year in the first half and contributed 53% of consumer healthcare sales. E-commerce revenue increased 32% and accounted for 28% of the segment's sales. The company continued to focus on portfolio premiumisation and higher-potential product launches. It launched the "Vizible" range under Lacto Calamine to strengthen its presence in premium skincare and invested about 11% of consumer healthcare sales in media and trade promotion across digital and traditional channels.
The company's net debt stood at INR 48.59 billion as of Sept. 30, compared with INR 41.64 billion as of Mar. 31.
Piramal Pharma raised its FY27 revenue growth outlook to 19-20%, citing strong first-half performance, robust order inflows, and continued business momentum. "H1FY27 built on the strong start to the year, driven by broad-based business momentum, strong order inflows, improved operating leverage, and continued focus on execution and productivity," the company said in the investor presentation. It also added a healthy order book, encouraging customer engagement, and continued operating discipline is likely to support the remaining year.
For Apr-Sept, the company reported a consolidated net loss of INR 638 million on revenues of INR 48.87 billion.
Piramal Pharma announced its September quarter earnings post market hours. Tuesday, its shares ended at INR 198.72 apiece on the National Stock Exchange, up 1.8% from Monday. End
Edited by Shubhayan Bhattacharya
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